Retirement taxes by state
How South Carolina taxes retirement income in 2026
South Carolina's income tax rates run from 1.99% to 5.21%. Here's how South Carolina treats Social Security, retirement-account withdrawals, pensions and Roth conversions in 2026 — and what that means in dollars: a retired couple, both 67, with $98,000 of income pays nothing in South Carolina income tax.
Updated October 2026 · 2026 tax year
South Carolina at a glance
- Income tax from 1.99% to 5.21%.
- Social Security isn't taxed.
- Retirement income (pensions, 401(k)s, IRAs, Roth conversions): up to $3,000 per person excluded under age 65.
- Extra $15,000 deduction per person from age 65.
- 44% of capital gains is excluded.
South Carolina retirement tax questions
Does South Carolina tax Social Security?
No. Social Security isn't taxed.
Does South Carolina tax 401(k) and IRA withdrawals?
Partly. Retirement income (pensions, 401(k)s, IRAs, Roth conversions): up to $3,000 per person excluded under age 65. Also: extra $15,000 deduction per person from age 65.
Does South Carolina tax pensions?
Partly. Retirement income (pensions, 401(k)s, IRAs, Roth conversions): up to $3,000 per person excluded under age 65.
Does South Carolina tax Roth conversions?
Partly. Retirement income (pensions, 401(k)s, IRAs, Roth conversions): up to $3,000 per person excluded under age 65. Anything above that is taxed like other income.
What is South Carolina's income tax rate in 2026?
South Carolina's income tax rates run from 1.99% to 5.21%.
What retirees actually pay in South Carolina: three examples
Calculated with Retirology's tax engine under 2026 law, using each state's standard deduction, its retirement breaks and the 2026 federal rules for how much Social Security is taxable. That couple would owe nothing in South Carolina — one of 24 states (counting DC) where they'd pay $0.
| Household | Total income | South Carolina tax | Share |
|---|---|---|---|
| Retired couple, both 67 $48,000 of Social Security, $40,000 drawn from IRAs and 401(k)s, and $10,000 of qualified dividends | $98,000 | $0 | 0.0% |
| Single retiree, 70 $30,000 of Social Security, a $25,000 pension and $15,000 of IRA withdrawals | $70,000 | $320 | 0.5% |
| Early-retired couple, both 56, converting to Roth A $60,000 Roth conversion and $20,000 of long-term gains and qualified dividends, living on savings | $80,000 | $868 | 1.1% |
State income tax only — before local taxes, property tax relief and credits not listed above. Federal income tax is extra and the same in every state.
South Carolina income tax brackets (2026)
Rates apply to South Carolina taxable income, after the state's deductions and the retirement breaks above.
| Single | Rate | Married filing jointly | Rate |
|---|---|---|---|
| Up to $30,000 | 1.99% | Up to $30,000 | 1.99% |
| Over $30,000 | 5.21% | Over $30,000 | 5.21% |
Details and limits
H.4216 (2026): 1.99% / 5.21% and the income-phased SC deduction replace the federal standard deduction. 65+: $15,000 per person (the age deduction, which absorbs the $10,000 retirement deduction); under 65, $3,000 of retirement income. 44% of capital gains excluded.
Sources
Rates and rules for the 2026 tax year, from Retirology's state tax data (reviewed October 2026):
This page explains state tax rules in general terms. It isn't tax advice — check your state's official instructions or a tax professional for your situation.