South Carolina Small Business Tax Guide — 2026
Income Tax Rate
0% — 6.3% (progressive, being reduced)
Sales Tax Rate
6% state + local (total typically 7% — 9%)
Filing Deadline
April 15 (matches federal deadline)
South Carolina Income Tax
South Carolina imposes a state income tax with rates of 0% — 6.3% (progressive, being reduced). Self-employed individuals, freelancers, and sole proprietors pay this tax on their net business income in addition to federal income tax and federal self-employment tax (15.3%).
Self-Employment in South Carolina
South Carolina taxes self-employment income at progressive rates up to 6.3% (being gradually reduced). No separate state SE tax. South Carolina starts with federal taxable income.
Estimated Tax Requirements
Quarterly estimated payments required if you expect to owe $100 or more. Standard federal due dates apply.
South CarolinaDeductions & Credits
- South Carolina starts with federal taxable income — most deductions flow through
- Deduction for net capital gains (44% exclusion)
- Credit for taxes paid to other states
- SC conforms to the QBI deduction (via federal taxable income)
Business Filing Fees
LLC: $110 formation + $0 annual fee (no annual report). Corporation: $135 formation + annual license fee.
Key Facts About South Carolina Taxes
- South Carolina is reducing its top rate from 6.5% toward 6.3% and lower
- No annual LLC fee or report — very low ongoing costs
- Very low $100 estimated payment threshold
- South Carolina starts with federal taxable income, simplifying the return
Track Your South Carolina Business Expenses
TaxTidy helps South Carolina freelancers and self-employed individuals track every business expense with AI-powered receipt scanning. Snap a photo of any receipt and TaxTidy instantly extracts the vendor, amount, and tax category — then maps it to the correct IRS Schedule C line. At tax time, generate an audit-ready PDF report with all your deductions organized and totaled.
Frequently Asked Questions
What is South Carolina's income tax rate?
South Carolina uses progressive rates from 0% to 6.3%. The first $3,460 is exempt, and rates increase up to the top bracket.
Does South Carolina require an annual LLC report?
No. South Carolina does not require annual reports or fees for LLCs, making it one of the cheapest states for ongoing maintenance.
When are South Carolina estimated taxes due?
Quarterly on April 15, June 15, September 15, and January 15. Required if you expect to owe just $100 or more.
Official source: South Carolina Department of Revenue
TaxTidy provides expense organization tools based on the most current US tax law available to it. TaxTidy is not a CPA, Enrolled Agent, or licensed tax professional. All categorizations, deductions, and tax calculations are estimates. Please verify all data for accuracy and consult a certified tax professional before filing.
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