South Carolina · State and Local Tax (SALT) Deduction
State and Local Tax (SALT) Deduction in South Carolina (2026)
Deduct combined state income taxes (or sales taxes) and local property taxes up to the 2026 SALT limit. South Carolina has a progressive income tax with a top rate of 5.21%, so a South Carolina filer's combined marginal rate on the next dollar at $59,318 of income is about 17.21% (12% federal + 5.21% SC).
2026 savings example for South Carolina
Planning estimate for a single filer earning $59,318 (South Carolina median household income in LevyIO's state dataset) who removes $5,000 from taxable income. Federal tax uses the 2026 IRS brackets after the $16,100 standard deduction; SC tax uses the state brackets in LevyIO's dataset and assumes the state follows the federal treatment.
Estimated total savings
$861
Federal savings
$600
$4,938 → $4,338 · 12% bracket
SC state savings
$261
$1,689 → $1,429 · 5.21% marginal
Combined marginal rate
17.21%
≈ $172 saved per $1,000 deducted
Statutory maximum for this item in LevyIO's dataset: $40,400.
Federal × South Carolina marginal rates (2026, single)
Gross-income ranges include the federal standard deduction. The SC column is the state marginal rate at the midpoint of each range. The last column is the tax saved per $1,000 deducted at that combined rate.
| Federal bracket | Gross income (single) | SC marginal | Combined | Per $1,000 |
|---|---|---|---|---|
| 10% | $16,100 - $28,500 | 1.99% | 11.99% | $120 |
| 12% | $28,500 - $66,500 | 5.21% | 17.21% | $172 |
| 22% | $66,500 - $121,800 | 5.21% | 27.21% | $272 |
| 24% | $121,800 - $217,875 | 5.21% | 29.21% | $292 |
| 32% | $217,875 - $272,325 | 5.21% | 37.21% | $372 |
| 35% | $272,325 - $656,700 | 5.21% | 40.21% | $402 |
| 37% | Over $656,700 | 5.21% | 42.21% | $422 |
Eligibility & forms
Taxpayers who pay state income, sales, or property taxes
- Must itemize
- State/local income OR sales tax
- Property taxes on real estate
- $40,400 combined cap for most filers ($20,200 MFS)
Federal forms: Schedule A
South Carolina filing notes
Do not use the older 6.4% South Carolina bracket table for tax year 2026 planning. H. 4216 starts from federal AGI, replaces federal deductions with the South Carolina Income Adjusted Deduction, keeps the 44% net capital gains deduction, and should be verified against SCDOR guidance before filing.
Common mistakes: Exceeding the SALT cap; Including foreign taxes here.
Frequently asked questions
How much can the State and Local Tax (SALT) Deduction save a South Carolina taxpayer in 2026?
In LevyIO's example, a single filer with $59,318 of income (the South Carolina median household income in our state dataset) who removes $5,000 from taxable income saves about $600 in 2026 federal tax (12% marginal bracket) plus about $261 in South Carolina tax (5.21% state marginal rate), roughly $861 combined. It is a planning estimate computed from the 2026 IRS brackets and LevyIO's SC bracket data, not a survey figure.
What is the South Carolina income tax rate for 2026?
South Carolina has a progressive income tax with a top rate of 5.21%. The SC standard deduction in LevyIO's dataset is $8,350 single / $16,700 married. H. 4216 changed tax year 2026 rules: South Carolina starts from federal AGI, uses a South Carolina Income Adjusted Deduction, and applies 1.99% below $30,000 and 5.21% above $30,000 minus $966. 44% capital gains deduction. Social Security exempt.
Who qualifies for the State and Local Tax (SALT) Deduction in South Carolina?
Taxpayers who pay state income, sales, or property taxes. The federal rules are the same in every state; the requirements are: Must itemize; State/local income OR sales tax; Property taxes on real estate; $40,400 combined cap for most filers ($20,200 MFS). South Carolina filers should confirm on the SC return whether the state follows the federal treatment.
Which forms do I file to claim the State and Local Tax (SALT) Deduction?
Federal: Schedule A. South Carolina: check the South Carolina Department of Revenue instructions for the matching state schedule. Common mistakes: Exceeding the SALT cap; Including foreign taxes here.
State and Local Tax (SALT) Deduction in other states
- Full State and Local Tax (SALT) Deduction guide (all states)
- State and Local Tax (SALT) Deduction in Georgia
- State and Local Tax (SALT) Deduction in North Carolina
- State and Local Tax (SALT) Deduction in Alabama
- State and Local Tax (SALT) Deduction in Arkansas
- State and Local Tax (SALT) Deduction in California
More South Carolina deductions and credits
Sources
Reviewed 2026-09-17. Estimates are educational planning figures computed from the IRS 2026 inflation adjustments and LevyIO's state bracket dataset; they are not tax advice.