Biz Write-Offs LogoBiz Write-Offs

Sales tax deduction in South Carolina

Varies

Is Sales Tax Deductible in South Carolina?

Short answer: Only instead of income tax: itemizers in South Carolina pick sales tax (6% state rate, about 7.49% with local taxes) or state income tax, whichever is bigger. Instead of sales tax, vehicles pay a 5% infrastructure maintenance fee capped at $500; boats and aircraft pay a 5% 'max tax' also capped at $500, with no local tax.

Use the IRS Sales Tax Deduction Calculator or your receipts, add sales tax paid on a car, boat, or home-building materials, and stay within the $40,400 SALT cap (Schedule A line 5a).

Records to keep: Keep your state return, W-2s and 1099s (1099-R, SSA-1099), and any state credit worksheets. Check your state revenue department's current-year instructions before you file.