Find Local South Carolina Tax Relief Experts

South Carolina has a graduated individual income tax from 0% to 7% for 2024, with recent legislation reducing the top rate and further reductions planned annually until reaching 6.5%. The state sales tax is 6%, with a maximum local add-on of 1% for a total rate of 7% in most areas; South Carolina has a $300 cap per transaction on the sales tax for durable goods like boats and aircraft, creating planning opportunities for high-value purchases. Corporate income tax in South Carolina is 5% on South Carolina net income; the state uses a single-sales-factor apportionment and offers substantial economic development credits for manufacturers who create jobs in South Carolina. Payroll taxes require South Carolina employers to withhold state income tax and file SC-941 quarterly; employers who fail to remit withheld taxes face 10% penalty plus 0.5% monthly interest. South Carolina's corporate license fee of 0.1% of capital stock and paid-in surplus applies to all corporations doing business in South Carolina, as a separate annual obligation from the income tax. Back tax debt in South Carolina accumulates at prime rate plus 3% annually; the Department of Revenue can garnish wages, levy bank accounts, and revoke business licenses for delinquent taxpayers. Manufacturing businesses relocating from high-tax states, automotive suppliers, and tourism industry operators are frequent sources of South Carolina tax compliance issues. South Carolina offers installment agreements and a formal protest procedure before the Administrative Law Court for disputed tax assessments.