South Carolina Capital Gains Tax (2026)
South Carolina taxes capital gains as ordinary income on a graduated scale from 0% up to a top rate of 6%. Run your own numbers with the free capital gains tax calculator, which estimates federal, NIIT, and South Carolina tax together.
In short: federal long-term rates of 0%, 15%, or 20% apply everywhere. South Carolina adds state tax on top, at up to 6%.
How South Carolina treats capital gains
South Carolina taxes capital gains as ordinary income on a graduated scale from 0% up to a top rate of 6%. The estimate subtracts South Carolina's standard deduction ($8,350 single / $16,700 married).
Good news if you hold long. South Carolina gives long-term gains a partial exclusion or reduced rate that this site's flat estimate does not model, so your actual South Carolina tax on a long-term gain may be lower than the ordinary-income estimate shown by the calculator.
2026 South Carolina income tax brackets
| Taxable income | Rate |
|---|---|
| $0 – $3,640 | 0% |
| $3,640 – $18,230 | 3% |
| Over $18,230 | 6% |
Single-filer taxable income. Married thresholds are doubled.
A worked example
Say you are a single filer in South Carolina with $60,000 of taxable income who sells stock held over a year for a $25,000 long-term gain. Federal tax on the gain is $3,750 (all of it lands in the 15% bracket at this income; no NIIT applies below $200,000 MAGI). South Carolina adds an estimated $1,500, for a combined $5,250, an effective 21.0% on the gain. These figures use the same math as the calculator, 2026 federal brackets per IRS Rev. Proc. 2025-32, and state figures from the Tax Foundation's State Individual Income Tax Rates and Brackets, 2026.
Frequently asked questions
Does South Carolina tax capital gains?
Yes. South Carolina taxes capital gains as ordinary income. South Carolina taxes capital gains as ordinary income on a graduated scale from 0% up to a top rate of 6%.
What will I pay on a long-term gain in South Carolina?
Combined, our worked example ($25,000 long-term gain on $60,000 of income, single) comes to $5,250: $3,750 federal plus $1,500 South Carolina tax, an effective 21.0%.
Do I still owe federal capital gains tax in South Carolina?
Yes. Federal capital gains tax (0%, 15%, or 20% long-term, ordinary rates short-term, plus the 3.8% NIIT for high earners) applies no matter your state. The free calculator estimates federal, NIIT, and South Carolina tax together.
More
- Every state's capital gains treatment
- Capital gains tax explained: short-term vs long-term
- Neighbors alphabetically: Rhode Island · South Dakota
This page is general information, not tax, legal, or financial advice. Rates and rules can change and depend on your situation. Confirm details with a tax professional, the IRS, or your state's revenue department.
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