Taxes in Lexington
South Carolina's real, current two-bracket income tax (Act 110, 1.99%/5.21% for tax year 2026) applies to Lexington residents same as anywhere else in the state, layered with the LOWEST combined sales tax rate (7%) among the four SC markets in this wave and a property tax rate (~0.49% effective) below the SC statewide average.
Exploring the idea of moving?
We can connect you with a local real estate professional who knows the area -- no pressure, just a starting point.
Learn moreSouth Carolina's real two-bracket income tax -- restated as place-level context
Act 110 (H.4216), signed March 30, 2026, restructured South Carolina's income tax into two brackets for tax year 2026: 1.99% on the first $30,000 of taxable income, 5.21% above that -- replacing the prior graduated 0%/3%/6% structure, with further revenue-triggered rate reductions beginning in 2027. This is genuinely distinct from both no-income-tax states (TX/TN/FL) and flat-rate states (CO/AZ) covered elsewhere in this dataset.
Social Security exemption and the real, coordinated senior deduction
Social Security is fully exempt from South Carolina state income tax regardless of age. Taxpayers 65+ get a further deduction against other income, but it is COORDINATED, not additive: capped at $15,000 per person ($30,000 for a couple both 65+), reduced by any other retirement-income deduction already claimed. Taxpayers under 65 can deduct up to $3,000 of qualifying retirement income.
Lexington's lowest-in-this-wave combined sales tax
Lexington's combined 2026 sales tax rate is 7%: South Carolina's 6% state rate plus a 1% Lexington County local-option rate, with no separate town-level rate layered on top. This is the LOWEST combined sales tax among the four SC markets built in this wave -- Sumter, Florence, and Aiken all cite an 8% combined rate. Unprepared groceries are exempt from the 6% state rate.
Property tax: below the SC statewide average
Lexington County's effective property tax rate was cited at approximately 0.49%, below South Carolina's own statewide average of 0.51%-0.54%. As statewide, owner-occupied primary residences are assessed at just 4% of fair market value versus 6% for non-primary/investment property.
Key takeaways
- South Carolina's real two-bracket income tax (Act 110: 1.99%/5.21% for 2026) applies to all Lexington residents -- not a no-income-tax or flat-rate structure.
- Social Security is fully exempt regardless of age; the age-65 deduction is coordinated (not additive) with other retirement-income deductions, capped at $15,000 per person.
- Lexington's combined sales tax (7%) is the LOWEST among the four SC markets in this wave -- Sumter, Florence, and Aiken all cite 8%.
- Lexington County's effective property tax rate (~0.49%) sits below South Carolina's own statewide average.
Want to know what your budget actually buys here?
Tell us a bit about what you're looking for and we'll connect you with someone local who can walk you through real numbers.
Get local guidanceRead the full Lexington overview for the complete picture -- housing, taxes, climate, and who this place genuinely fits.
Planning a move?
Tell us what you're looking for and we'll connect you with a local expert who can help you make it happen.
Talk to a local expert