Flat-Fee Tax Preparation for South Carolina Residents

South Carolina's top income tax rate is being reduced to 6.0% by 2024 and will phase down further — from a prior high of 7% under recent legislation

SC does not tax Social Security benefits and provides a retirement deduction of up to $15,000 per year for taxpayers age 65+ on other retirement income

South Carolina's deed recording fee (transfer tax) is $1.85 per $500 of value — a moderate transactional cost for SC real estate

SC provides a significant property tax benefit for primary residences (4% assessment ratio) vs. investment/second properties (6% ratio) — creating a substantial difference in property tax between owner-occupied and rental property

The SC pass-through entity tax election allows eligible S-corps and partnerships to elect entity-level taxation for SALT cap planning

South Carolina does not impose a state estate tax or inheritance tax — favorable for wealth transfer planning

SC conforms to federal depreciation including bonus depreciation, benefiting real estate investors and capital-asset-heavy businesses

Myrtle Beach and coastal SC short-term rentals are a significant investment category — subject to SC accommodations tax (7%) plus local fees

South Carolina Real Estate Tax

South Carolina's real estate market includes significant activity in Charleston, Myrtle Beach, Hilton Head, and the Greenville-Spartanburg metro. The 4% vs. 6% property assessment ratio creates a meaningful ongoing property tax difference between primary residences and investment properties. Coastal short-term rentals face SC accommodations tax. No estate tax benefits long-term real estate investors.

South Carolina Business Tax

South Carolina businesses benefit from declining income tax rates, no estate tax, federal depreciation conformity, and the PTET election. SC's quality-of-life profile and lower cost of living attract business owners relocating from the Northeast. The accommodations tax is a key compliance obligation for SC short-term rental operators.

Do I need to file a South Carolina state tax return?

If you are a South Carolina resident or earned SC-source income above the filing threshold, you must file a SC 1040. SC taxes residents on worldwide income. The top rate is phasing down under recent legislation — check current SC Department of Revenue guidance for the applicable year's rates.

What is South Carolina's property tax difference for investment property?

South Carolina assesses owner-occupied primary residences at 4% of fair market value, while investment properties, second homes, and commercial properties are assessed at 6%. This 50% difference in assessment ratio results in significantly higher property taxes for investors vs. owner-occupants on the same valued property. Correctly establishing primary residence assessment is important for SC homeowners.

What makes South Carolina taxes unique?

SC's property tax assessment ratio difference (4% vs. 6%) is one of the most distinctive features for real estate investors. The accommodations tax on short-term rentals, the retirement income deduction for older taxpayers, and the declining income tax rate under recent reform all shape SC's tax landscape.

I own a beach rental in Myrtle Beach — what taxes do I owe?

Short-term rental income in South Carolina is subject to SC income tax plus the SC accommodations tax at 7% of gross rental receipts, plus applicable local accommodations or hospitality taxes. The combined SC + local accommodations tax can reach 11–13% in some beach communities. Federal income tax applies in full. Platforms like Airbnb collect some taxes automatically, but not always all applicable local taxes — verify for your specific county and municipality.