Taxes in Greenville
South Carolina is neither a no-income-tax state nor a flat-tax state: Act 110, signed into law in 2026, restructures the state income tax into two brackets for tax year 2026 -- 1.99% on the first $30,000 of SC taxable income, 5.21% above that -- while fully exempting Social Security and offering coordinated deductions for residents 65+.
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Learn moreAct 110's Real Two-Bracket Structure
Act 110 (H.4216) replaced South Carolina's prior graduated 0%/3%/6% bracket structure with two brackets, effective for tax year 2026: 1.99% on the first $30,000 of SC taxable income, and 5.21% on income above that threshold. This is a genuine simplification and real rate cut from the prior top rate, but it is not a flat tax -- income above $30,000 is taxed at the higher 5.21% rate on that portion, and further triggered rate reductions are not scheduled to begin until 2027.
Social Security Is Fully Exempt
South Carolina does not tax Social Security or railroad retirement benefits at all -- a real, unconditional exemption that applies regardless of a retiree's total income level, distinct from states that only partially exempt or income-cap their Social Security exemption.
Age-65 Deductions Are Real But Coordinated, Not Simply Additive
Residents 65 and older can claim a general deduction of up to $15,000 against any SC income ($30,000 for a couple where both spouses are 65+), plus up to $10,000 in qualifying retirement-income deductions from pensions, IRAs, and 401(k)s. Critically, these two deductions are coordinated rather than fully additive: the $15,000 age-65 deduction is reduced by any retirement-income deduction already claimed (except for surviving spouses). Confirm the current-year coordination math with a tax professional or the SC Department of Revenue rather than assuming a simple $25,000 combined deduction.
Sales Tax: Low Base Rate, Some Local Variation
South Carolina's base state sales tax rate is 6.0%. Inside Greenville city limits, the combined rate stays at 6.0% (no city-level add-on); across Greenville County more broadly, a local-option add-on brings the combined rate to 6.4% in some areas. Confirm the specific rate for a given address, since South Carolina permits county-level local-option sales taxes that can vary by district.
Key takeaways
- South Carolina's Act 110 sets a real two-bracket 2026 income tax: 1.99% under $30,000, 5.21% above -- neither a no-income-tax nor a flat-tax structure.
- Social Security is fully, unconditionally exempt from SC state income tax.
- Residents 65+ get a coordinated (not simply additive) combination of a $15,000 general deduction and a $10,000 retirement-income deduction -- confirm the real combined benefit with a tax professional.
- Sales tax is 6.0% inside Greenville city limits, up to 6.4% in parts of the broader county.
- Further Act 110 rate-reduction triggers are not scheduled to begin until 2027 -- the 2026 rates are not necessarily the final word on SC's income tax trajectory.
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