North Carolina vs South Carolina Taxes (2026)

Side-by-side comparison of income tax, property tax, sales tax, capital gains, and retirement treatment between North Carolina and South Carolina for tax year 2026. Use the calculator below to estimate how much you would save (or pay) after relocating.

TaxNorth CarolinaSouth Carolina
State income tax (effective)4.50%6.40%
Long-term capital gains4.50%6.40%
Property tax (effective)0.73%0.57%
Combined sales tax6.99%7.50%
Retirement incomefully-taxabless-exempt
Income systemflatprogressive

Tax savings calculator

$
$
$

Estimated 2026 burden

North Carolina total tax

$19,821

South Carolina total tax

$21,700

North Carolina state tax

$4,451

South Carolina state tax

$6,330

Difference

+$1,879

South Carolina costs more

As % of income

1.57%

Federal tax is identical in both columns and excluded from the difference. Numbers use 2026 IRS brackets, state effective rates, and the 3.8% NIIT where applicable.

Relocation analysis

Moving from North Carolina to South Carolina would cost an extra $1,879 per year on this profile.

  • Property tax difference on a $400k home: $640/yr.
  • Sales tax difference on $50k of taxable spending: $255/yr.
  • Capital gains difference per $10k gain: $190.

Key differences

  • North Carolina: Flat 4.25% (2026), trending to 3.99% by 2027; 2.5% corporate, phasing out by 2030.
  • South Carolina: Top 6.2% bracket; $10k retirement-income deduction.
  • Income system: North Carolina is flat, South Carolina is progressive.
  • Retirement: North Carolinafully taxable; South Carolinass exempt.

Recommended Tax Filing Software

Once you know what you owe, file with software built for your situation. We compare the top U.S. options below.

Editor's pick

TurboTax

Best overall guided experience

4.7·$0 – $129 federal
  • Step-by-step interview
  • Live expert add-on
  • W-2 + 1099 auto-import
  • Pricier than competitors
File with TurboTax

H&R Block

Best for in-person backup

4.5·$0 – $115 federal
  • Free in-person review
  • Strong refund accuracy guarantee
  • Easy import from prior software
  • State filing adds up
File with H&R Block

TaxAct

Best value for self-employed

4.3·$0 – $99 federal
  • Cheaper than TurboTax/H&R
  • Strong Schedule C tools
  • Price-lock guarantee
  • Fewer guidance tooltips
File with TaxAct

FreeTaxUSA

Best truly-free federal e-file

4.6·$0 federal / $14.99 state
  • Free federal filing for all forms
  • Cheap state filing
  • Supports complex situations
  • Plainer interface
File with FreeTaxUSA

We may earn a commission from links above at no cost to you. See our Affiliate Disclosure.

Comparison FAQs

It depends on income mix. South Carolina has an effective income rate of 6.40% vs North Carolina's 4.50%. Property tax (0.73% vs 0.57%) and sales tax can swing the answer.

Related resources

Get Tax Tips, Updates, and Financial Insights

One short email a month. No spam. Unsubscribe anytime.

By subscribing you agree to our Privacy Policy. We never sell your data.