NC VS SC
INCOME TAX
Last updated October 2026
THE SHORT ANSWER
For 2026, North Carolina taxes individual income at a flat 3.99%. South Carolina’s new law uses two brackets, 1.99% and a top rate of 5.21%. Neither state taxes Social Security benefits. Which state costs you less depends on your own income and deductions, so run real numbers with a tax professional before you decide.
What is North Carolina’s income tax rate in 2026?
North Carolina’s individual income tax rate is a flat 3.99% for 2026. The NC Department of Revenue says the rate is 3.99% for tax years after 2025. For 2025 it was 4.25%.
Flat means one rate applies to all of your North Carolina taxable income. There are no brackets to climb. The NCDOR also notes that more rate cuts may apply starting in 2027 if certain revenue triggers in state law are met.
What is South Carolina’s income tax rate in 2026?
South Carolina now has two brackets, and the top rate is 5.21% for 2026. Act 110 of 2026 was signed on March 30, 2026. It applies to tax years that begin after December 31, 2025. The SC Department of Revenue lists these 2026 rates:
- Taxable income from $0 to $29,999: 1.99%
- Taxable income of $30,000 or more: 5.21% of taxable income, minus $966
The new law changes more than rates. South Carolina now starts from your federal adjusted gross income. It no longer uses the federal standard or itemized deductions. Instead, it created a new SC Income Adjusted Deduction:
- $15,000 for single or married filing separately
- $22,500 for head of household
- $30,000 for married filing jointly or surviving spouse
This deduction shrinks as income rises. For a single filer, it phases out between $40,001 and $95,000 of federal AGI. For a married couple filing jointly, it phases out between $80,001 and $190,000. The top rate may also drop starting in 2027 if state revenue grows enough. The first returns under the new law are due April 15, 2027.
TAKE THE NEXT STEP
Weighing the South Carolina side of the line?
My Horry County guide covers the first steps after you move.
Do NC and SC tax Social Security?
No. Neither state taxes Social Security benefits.
- North Carolina. The NCDOR says plainly, “North Carolina does not tax this income.” If part of your benefits was taxed on your federal return, you deduct that amount on your NC return.
- South Carolina. The SCDOR says Social Security benefits are not included in South Carolina gross income.
Pensions, IRAs, and other retirement income follow different rules in each state. South Carolina has a separate retirement income deduction. I covered that in detail in Does NC or SC Tax Your Pension? Act 110 changed how South Carolina figures income, so ask your tax preparer how it affects your retirement income for 2026.
What happens with taxes the year I move from New York or New Jersey?
You will likely file a part-year return in your new state that year.
- Moving to North Carolina. NC law calls you a part-year resident if you move your domicile, meaning your legal home, into the state during the year. You file Form D-400 with Schedule PN. That schedule figures the share of your income NC can tax.
- Moving to South Carolina. The SCDOR says that in your first year in SC, you are generally a part-year resident.
Your old state has its own part-year rules. Ask your New York or New Jersey tax preparer what you will owe there for the move year.
Keep a simple paper trail of the move. Save your closing documents. Note the date you get your new driver’s license and register to vote. Your tax preparer may ask for these dates.
Is the income tax rate the whole story?
No. Income tax is one line in a bigger budget. Property taxes, insurance, and vehicle costs vary by county and by the home itself. A lower rate on paper does not tell you what you will pay in a year.
I do not post side-by-side savings charts, because every household is different. Instead, bring your last New York or New Jersey return to a CPA who works with both Carolinas. Ask them to run your numbers for each state. Then we can look at homes on the side that fits.
Frequently Asked Questions
What is the NC income tax rate for 2026?
The NC Department of Revenue lists a flat 3.99% rate for tax years after 2025.
What is the top SC income tax rate for 2026?
Under Act 110 of 2026, taxable income of $30,000 or more is taxed at 5.21%, minus $966. Income under $30,000 is taxed at 1.99%.
Does North Carolina or South Carolina tax Social Security?
No. Both state revenue departments say Social Security benefits are not taxed as state income.
Do I file taxes in two states the year I move?
Usually, yes. North Carolina and South Carolina both treat you as a part-year resident in the year you move in. Your old state has its own part-year rules.
LET'S TALK
Planning a move to the Carolinas?
I am licensed on both sides of the state line and can help you compare homes in NC and SC.
Get the Moving GuideBook a CallCall 843-203-9962 Call 910-981-1311Email Danielle
Related Reading
Does NC or SC Tax Your Pension?
SC vs NC: Which Side of the State Line Should You Retire On?
Moving to Brunswick County, NC: Your New Resident Checklist
Moving to Horry County, SC: New Resident Guide
Snowbird to Full-Timer
This post is general information, not tax or legal advice. Tax laws change, and your situation is your own. Talk with a CPA or tax attorney before you make decisions based on taxes.
DANIELLE KING, REALTOR®
Results that MOVE you
843-203-9962 | 910-981-1311 · DANIELLE@YOURKEYTOREALTY.COM
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REALTY ONE GROUP DOCKSIDE
Danielle King, REALTOR®
Licensed in NC (#363826) and SC (#145618) | Realty ONE Group Dockside
Danielle helps sellers, buyers and investors in Brunswick County NC, Tabor City NC and Horry County SC. Her real estate roots go back to 1995. She writes about the local market here on her blog.