- 33rdoverall business tax climate – trailing other Southeastern states like Florida, North Carolina and Tennessee.
- 68% of all property taxes collected are paid by SC businesses – 11th highest amongst all states.
- South Carolina is the only state in the country that does not levy property tax on primary residences to cover school operating costs.
- South Carolina has the highest tax differential of apartment vs. primary residence and commercial property vs. primary residence in the country. For example, the property tax for a commercial property or apartment in Charleston, SC is 5.7 times higher than the property tax on a primary residence.
- Unlike other states in the Southeast, South Carolina does not exempt any amount of a business’s personal property from taxation, which places a significant financial burden on small businesses.
- The Tax Foundation ranks South Carolina 24th for individual income tax and 41st for property tax. The Council on State Taxation gives South Carolina an F for its Sales Tax System.
- South Carolina has the highest marginal income tax rate (6.2%) among all states in the Southeast.
- South Carolina is one of only 15 states in the country that continues to levy a capitol stock tax via its corporate license fee.
Tax Reform
In 2022, South Carolina saw its largest tax cut and taxpayer rebate in state history through the passage of Act 228, the Comprehensive Tax Cut Act of 2022. The legislation reduced the top individual income tax rate from 7% to 6.5%, simplified our tax code by collapsing individual income tax brackets, effectively reduced the industrial property tax for manufacturers from 9% to 6%, and provided a one-time rebate of $1 billion. While the Chamber has long supported comprehensive tax reform, we were encouraged by, and supportive of, this first step towards comprehensive reform. In 2023, the General Assembly phased down the top individual income tax rate from 6.5% to 6.4%. In 2024, the General Assembly accelerated the cut from 6.4% to 6.2%. It will eventually be phased down to 6.0%
33rd
overall business tax climate
6th
highest manufacturing property tax rate
68%
of all property taxes collected are paid by SC businesses