South Carolina Capital Gains Tax Calculator
South Carolina taxes capital gains as ordinary income at the state level, which means a gain on selling shares, property or other investments is added to your other income and taxed using the South Carolina income tax brackets, with no separate preferential long-term rate like the federal system provides. This calculator estimates the South Carolina state tax on a capital gain by stacking the gain on top of your other taxable income and applying the sourced South Carolina Department of Revenue brackets for tax year 2024, then taking the difference. Enter your gain, your other annual taxable income and your filing status to see the state tax attributable to the gain and the effective rate on it. The result is the South Carolina state portion only; federal capital gains tax, which has separate short-term and long-term rates set by the IRS, is calculated separately. Because the gain stacks on your other income, the same gain is taxed at a higher rate the more you already earn. Some states provide specific exclusions or preferential treatment for certain gains; this tool uses the standard ordinary-income method and links the South Carolina Department of Revenue so you can confirm any special rule that applies to you.
South Carolina taxes capital gains as ordinary income. A $20,000.00 gain on top of $60,000.00 of other income (single) adds about $0.00 in South Carolina state tax, an effective rate on the gain of 0.00%.
How South Carolina taxes capital gains
South Carolina taxes capital gains as ordinary income, so the gain is added to your other income and taxed at the South Carolina bracket rates.
state tax on gain = state income tax on (other income + gain) - state income tax on (other income)
effective rate on gain = state tax on gain / gain x 100
South Carolina capital gains tax: frequently asked questions
How are capital gains taxed in South Carolina?
South Carolina taxes capital gains as ordinary income at the state level: the gain is added to your other taxable income and taxed using the South Carolina income tax brackets published by the South Carolina Department of Revenue. This calculator applies those brackets to your gain. Some states provide specific exclusions or rates for particular gains; confirm your situation with the South Carolina Department of Revenue.
How much state tax will I pay on a $20,000.00 capital gain in South Carolina?
Stacked on $60,000.00 of other income, a $20,000.00 gain adds about $0.00 of South Carolina state income tax for a single filer, an effective rate on the gain of 0.00%. Your figure depends on your total income and filing status; enter them above.
Does South Carolina have a separate long-term capital gains rate?
Most states, including the default treatment here, tax long-term and short-term capital gains at the same ordinary income rates, unlike the federal system which has preferential long-term rates. Any state-specific exclusion or preferential rate is set by the South Carolina Department of Revenue; this calculator uses the ordinary income method and links the source.
What are South Carolina's income tax brackets for 2024?
South Carolina uses three brackets for 2024, the same for all filing statuses. The first $3,200 of taxable income is taxed at 0%, income from $3,201 to $16,040 is taxed at 3%, and income above $16,040 is taxed at 6.3%.
Is South Carolina reducing its income tax rate?
Yes. Act No. 228 (2022) set South Carolina's top rate on a downward glide path from 7% toward 6.0%. The rate was 6.5% in 2022, 6.4% in 2023, and 6.3% in 2024. The target is 6.0% by 2026, though each annual reduction requires that general fund revenues meet certain thresholds.
Does South Carolina offer special deductions for retirement income?
Yes. South Carolina is notably retiree-friendly. Taxpayers aged 65 and older may deduct up to $15,000 of retirement income from taxable income. Taxpayers under 65 may deduct up to $3,000 of qualifying retirement income. Social Security benefits are fully exempt from South Carolina income tax. These deductions are in addition to the standard deduction.
What standard deduction do South Carolina filers use?
South Carolina conforms to the federal standard deduction. For 2024, that is $14,600 for single filers, $29,200 for married filing jointly, $21,900 for head of household, and $14,600 for married filing separately. The amounts are adjusted annually for inflation by the IRS.
Official sources
- South Carolina income tax rates applied to capital gains (tax year 2024): South Carolina Department of Revenue, as at Jun 12, 2026.
Reviewed by the CalculatorHub team, edited by James Graham, 25 June 2026. See our methodology. General information, not financial or tax advice. State-specific exclusions, if any, are set by the South Carolina Department of Revenue.