Understanding your take-home pay in the Palmetto State requires looking at four primary deductions: Federal Income Tax, FICA (Social Security and Medicare), and the South Carolina state income tax. This SC paycheck calculator uses the latest 2024 tax brackets and state-specific rates to provide an accurate estimate of your net income.
South Carolina State Income Tax Rates
South Carolina has significantly simplified its tax code recently. For the 2024 tax year, South Carolina utilizes a simplified structure where the first $3,330 of taxable income is taxed at 0%, and any income above that threshold is taxed at a flat rate of 6%. This progressive jump is designed to provide relief to lower-income earners while maintaining a competitive flat-rate feel for middle and high earners.
Federal Taxes and FICA
Regardless of which state you live in, the federal government requires two major types of withholding:
FICA Taxes: This consists of Social Security (6.2%) and Medicare (1.45%). These are calculated based on your gross income before most other deductions.
Federal Income Tax: This is a progressive tax ranging from 10% to 37% depending on your annual earnings and filing status.
Example Calculation
If you earn a gross salary of $60,000 annually and file as Single in South Carolina:
Gross Monthly Pay: $5,000.00
FICA Withholding: $382.50
Estimated Federal Tax: Approximately $540.00 (varies by standard deduction)
SC State Tax: After the $3,330 exemption (annualized), the 6% rate applies to the remainder.
Net Pay: Your take-home would be approximately $3,780.00 depending on specific W-4 selections.
Why Does My Paycheck Vary?
While this calculator provides a strong estimate, your final pay might differ due to pre-tax contributions such as 401(k) plans, health insurance premiums, or Flexible Spending Accounts (FSAs). These deductions reduce your taxable income, which can actually lower the amount of tax withheld for both federal and South Carolina state taxes.