South Carolina and York County are focused on offering a fair, stable and reasonable tax structure that allows businesses to grow and prosper. Conservative fiscal management and taxation policies matched with rewarding incentives create a climate that encourages growth while maintaining balanced budgets.
The State of South Carolina administers income, sales and use, and franchise taxes. There is no tax (state or local) on inventories or intangibles and no state tax on real or personal property.
Corporate Income Tax
- Annual corporate income is based on:
- Income allocated to SC operations; and
- Income apportioned to SC. The state offers a single factor sales apportionment formula.
- A 5% state corporate income tax rate is applied to the sum of the two incomes. There is no local income tax.
Sales and Use Tax
- South Carolina has a 6% sales and use tax. SC counties can apply an additional 1 to 2% local option sales and use tax. York County has applied a 1% additional sales tax with the sole purpose of funding local transportation improvements through the Pennies For Progress Program. Total sales and use tax in York County is 7%.
- A variety of sales tax exemptions are offered to companies including:
- Machinery, equipment and applicable repair parts;
- Materials integral to the finished product;
- Industrial electricity and other fuels for manufacturers;
- R&D machinery and equipment;
- Air, water and noise pollution control equipment;
- Material handling equipment for manufacturers and distribution projects (investing above $35 M); and
- Packaging materials
Corporate License Tax
- An annual fee to the SC Department of Revenue
- The rate is $15.00 plus $1.00 for each $1,000 of capital stock and paid-in or capital surplus
- For multi-state operations, the tax is determined by the apportionment manner
Personal Income Taxes
- Individual income tax rates range from 0% to a top rate of 7% on taxable income
- Tax brackets are adjusted annually for inflation
- There is no local income tax in York County
Local government levies tax on real and personal property in South Carolina. There is no state property tax.
- Local property tax liability is a function of: Property Value x Assessment Ratio x Millage
- For real property, the property value is determined through an appraisal. Tangible personal property is recorded at cost and then depreciated based on statutory depreciation (for manufacturers) and income depreciation (for other businesses). To ensure equitable and uniform assessment throughout the state, property involving transportation, utilities, and manufacturing is administered by the South Carolina Department of Revenue, not local government.
- Assessment ratios on manufacturing operations are 10.5% on real and personal property. Commercial operations are 6% on real property and 10.5% on personal property. (York County has the ability to reduce this assessment ratio through the Fee-in-Lieu of Tax incentive).
- Millage rates are adopted annually by the local governing bodies and are applied to the assessments. A mill is equal to $0.001. York County millage rates can be found here.
- Statutory property tax exemptions on inventories, intangibles and pollution control equipment.