SC State Tax Return: Rates, Deductions & Credits

If you lived or earned income in South Carolina during 2025, you file your South Carolina state tax return on Form SC1040 with the Department of Revenue (SCDOR), and this year you have until October 15, 2026, to submit it. The SCDOR automatically extended the usual April 15 filing deadline while the legislature decides whether to conform state law to recent federal tax changes.¹ The top rate on 2025 taxable income is 6 percent, applied to amounts above $17,830.

The 2025 Deadline and the Payment Catch

The October 15, 2026, extension is automatic. You don’t request it, and you don’t file paperwork to claim it. The legislature is weighing whether to adopt provisions from the One Big Beautiful Bill Act, including federal exemptions for tips and overtime income and expanded senior breaks, and until that question is settled the state can’t finalize your liability.¹

Here is the part most people miss. The extension covers filing, not paying. If you owe tax, you must still pay at least 90 percent of your 2025 liability by April 15, 2026, or face penalties.² If you’re not sure what you’ll owe, estimate on the high side and send a payment. Overpayments come back as refunds.

If you need more time beyond October 15, 2026, you can file Form SC4868 for an additional extension. The same rule applies: more time to file, no more time to pay.²

Who Has to File

South Carolina residents must file an SC individual income tax return if they are required to file a federal return.³ That covers most working adults.

Nonresidents who earned South Carolina-source income, such as wages from a job in the state or rental income from property here, must also file. They use Schedule NR with the SC1040 to separate the portion of income the state can tax.⁴

Residents age 65 or older have a higher filing threshold. They don’t need to file unless gross income exceeds the federal filing requirement plus $15,000, or $30,000 for married filing jointly when both spouses are 65 or older. The extra cushion reflects the senior deductions described below, which often zero out the liability for retirees with moderate income.

Residency Status Matters

Your residency category decides what income the state can reach. A full-year resident treats South Carolina as a permanent home: the center of financial and social life, and the place returned to when away. Military members who left on orders remain residents while stationed elsewhere.⁵ A part-year resident moved into or out of the state during the year, and reports all income earned while a resident plus any South Carolina-source income earned while living elsewhere, using Schedule NR. A nonresident keeps a permanent home outside the state all year and files only on income sourced inside South Carolina, also with Schedule NR attached.⁶

The practical distinction trips people up. If you moved to South Carolina in July, your January-through-June wages at an out-of-state job aren’t taxable here. But if you kept a rental property in South Carolina while living elsewhere, that rental income is always taxable by the state regardless of where you live.

2025 Rates and Brackets

South Carolina uses a graduated structure. For 2025, three brackets apply to your state taxable income (the amount on SC1040, Line 5):

$0 to $3,560: 0 percent, no tax owed.
$3,560 to $17,830: 3 percent of the amount, minus $107.
$17,830 and above: 6 percent of the amount, minus $642.

Brackets are indexed for inflation each year.⁷ The starting point for the state calculation is federal taxable income, not gross income. The SC1040 then layers on state-specific additions and subtractions before the rate schedule applies.

Deductions That Cut Your State Taxable Income

Because the SC1040 starts from federal taxable income, your federal standard or itemized deduction is already baked in. South Carolina then allows additional subtractions on the state return.

Retirement Income Deduction

Income from a qualified retirement plan you own can be subtracted up to $3,000. Once you turn 65, that rises to $10,000. A surviving spouse receiving benefits from a deceased spouse’s plan qualifies based on the age the deceased spouse would have been.⁸

Age 65 and Older Deduction

Residents 65 or older can subtract up to $15,000 against any South Carolina income, not just retirement income. A joint return with both spouses 65 or older gets $30,000 combined. The amount is reduced by whatever you already claimed under the retirement income deduction, so the two don’t fully stack.⁶

Dependents Under Age Six

For each dependent under age six as of December 31, you can subtract the South Carolina dependent exemption amount, $4,930 for tax year 2025, from your state taxable income.⁶ This is a family-focused break that doesn’t exist at the federal level.

Credits That Cut Your Tax Dollar for Dollar

Two-Wage Earner Credit

Married couples filing jointly where both spouses have earned income taxed by South Carolina can claim a credit equal to 0.7 percent of the lesser of $50,000 or the lower-earning spouse’s qualified South Carolina income. The maximum is $350, and no other filing status qualifies.⁹

Tuition Tax Credit

A refundable credit equals 50 percent of tuition paid to an eligible South Carolina college or university, up to $1,500 per year, for both two-year and four-year schools. The student must enroll within 12 months of graduating high school, complete at least 30 credit hours per year, and qualify for in-state tuition. Recipients of a LIFE or Palmetto Fellows Scholarship for both spring and fall semesters are ineligible. The credit lasts up to four consecutive years, and because it’s refundable, you receive the full amount even if your tax liability is zero.¹⁰

Child and Dependent Care Credit

South Carolina offers a fully refundable credit equal to 7 percent of the expenses that qualify for the federal Child and Dependent Care Tax Credit, with a maximum of $210 for one child or $420 for two or more. You must claim the federal credit first.¹¹

Preparing and Submitting Form SC1040

Form SC1040 is the main document.⁴ Before you start, gather your completed federal return (you’ll need federal taxable income as the starting figure), all W-2s, any 1099s, and Social Security numbers for you, your spouse, and any dependents.

The form begins with federal taxable income, applies state additions and subtractions, runs the rate schedule, then lets you subtract credits. Enter your personal information exactly as it appears on your federal return. Mismatches cause processing delays because the SCDOR cross-references state data against federal records.

Nonresidents and part-year residents also need Schedule NR, which allocates total income between South Carolina sources and everything else. Column B of Schedule NR captures only the income, gains, losses, and deductions tied to South Carolina.⁶ All forms live in the forms section of the SCDOR website.

Filing Online

The SCDOR’s online portal, MyDORWAY, is the fastest route. You can enter data directly or upload from third-party tax software. After submission the system returns a confirmation number with a timestamp. Save it.³

Filing by Mail

If you prefer paper, print the completed SC1040 with all schedules and W-2s attached. The address depends on your situation:

Refund or zero balance: SC1040 Processing Center, PO Box 101100, Columbia, SC 29211-0100.
Balance due: Taxable Processing Center, PO Box 101105, Columbia, SC 29211-0105.

Both addresses come from the form instructions.¹² A trackable mailing service gives you proof of delivery if the SCDOR later says the return never arrived.

Penalties for Filing or Paying Late

South Carolina charges separate penalties, and they stack:

Failure to file: 5 percent of the unpaid tax for each month or partial month the return is late, up to 25 percent.¹³
Failure to pay: 0.5 percent of the unpaid tax for each month or partial month the balance remains outstanding, also capped at 25 percent.¹³

The failure-to-file penalty is ten times steeper per month than the failure-to-pay penalty, which is why filing on time matters even if you can’t pay in full. Interest also accrues on unpaid balances from the original due date.

Refunds and Payment Methods

Once the SCDOR has your return, you can check status with the “Where’s My Refund?” tool on the SCDOR website, available around the clock. You’ll need your Social Security number and the exact refund amount shown on your return.¹⁴ Electronic returns move through faster than paper returns, which require manual data entry.

Refunds come by direct deposit or paper check. Direct deposit is quicker; a paper check adds time for the State Treasurer’s Office to print and mail it.¹⁴

If you owe, the SCDOR accepts electronic payments through MyDORWAY by bank account withdrawal or credit card (with a convenience fee). For mailed payments, include Form SC1040-V, the Individual Income Tax Payment Voucher, with your check or money order. Make the check payable to SCDOR and write your name, Social Security number, and “2025 SC1040-V” in the memo line. One detail worth catching: if you’re mailing a paper return with a balance due, send the payment with the return itself rather than mailing the SC1040-V separately.¹⁵

1
South Carolina Department of Revenue. SCDOR Statement on Income Tax Conformity; April 15 Filing Deadline Extended for SC Returns
2
South Carolina Department of Revenue. Form SC4868 – Request for Extension of Time to File South Carolina Individual Income Tax Return
3
South Carolina Department of Revenue. Individual Income Tax
4
South Carolina Department of Revenue. 2025 Individual Income Tax Return
5
South Carolina Department of Revenue. New to SC? Follow These Steps to See if You Need to File Taxes
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South Carolina Department of Revenue. SC1040 Instructions
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South Carolina Legislature. South Carolina Code Title 12 Chapter 6 – South Carolina Income Tax Act
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South Carolina Legislature. South Carolina Code 12-6-1170 – Retirement Income Deduction
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South Carolina Legislature. South Carolina Code 12-6-3330 – Two Wage Earner Credit
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South Carolina Legislature. South Carolina Code Title 12 Chapter 6 – Section 12-6-3385 – Tuition Tax Credit
11
South Carolina Department of Revenue. Take Advantage of These Family Tax Credits and Deductions
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South Carolina Department of Revenue. 2025 SC1040 Individual Income Tax Form and Instructions
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South Carolina Legislature. South Carolina Code 12-54-43 – Civil Penalties
14
South Carolina Department of Revenue. Refunds
15
South Carolina Department of Revenue. 2025 Individual Income Tax Payment Voucher