Real Property Taxes in Europe, 2026
High property taxes levied not only on land but also on buildings and structures can discourage investment in infrastructure, which businesses would have to pay additional tax on.
3 min read
South Carolina | #29 Overall
South Carolina levies an individual income tax with two brackets, a top marginal rate of 6 percent, and a marriage penalty. By contrast, neighboring North Carolina levies a flat individual income tax and does not impose a marriage penalty, making South Carolina’s levy particularly uncompetitive. Pass-through businesses enjoy a preferential rate on business income, which helps them but creates distortions and drives up the ordinary rate.
The Palmetto State maintains a reasonably competitive corporate tax code, featuring a flat rate of 5 percent. However, the state also relies unusually heavily on tax credits rather than focusing on broad-based rate relief. The state imposes a capital stock tax without capping maximum payments. Capital stock taxes are levied against a business’s net worth (or accumulated wealth) and tend to penalize investment. Moreover, businesses are required to pay capital stock taxes regardless of profitability.
The state also applies a different formula to assess distinct property types, known as split roll taxation, and South Carolina is the only state to apply school property taxes to commercial and industrial property but not to residential property, raising costs for businesses and renters compared to homeowners.
| Category | Rank | Rank Change | Score |
|---|---|---|---|
| Overall | 29 | 0 | 5.08 |
| Corporate Taxes | 8 | 1 | 5.62 |
| Individual Income Taxes | 24 | -1 | 5.43 |
| Sales Taxes | 28 | 1 | 4.63 |
| Property Taxes | 40 | 1 | 4.20 |
| Unemployment Insurance Taxes | 27 | 1 | 5.11 |
- Learn more about South Carolina Taxes
-
Share your state results
Compare Neighboring States
Tax Data by State
Get facts about taxes in your state and around the US
More on South Carolina
Federal Surcharge Drives Another Increase in Wireless Taxes and Fees in 2026
Applying the sales tax, a traditional broad-based consumption tax, is perfectly appropriate, but excessive targeted taxation of wireless services lacks the traditional justifications—a user-pays system or the internalization of social costs—for excise taxation, raising consumer costs and discouraging investment.
5 min read
Gas Taxes by State, 2026
California levies the highest tax on gasoline at 73.6 cents per gallon (cpg), followed by Illinois at 70.4 cpg and Indiana at 63.1 cpg.
10 min read