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HEAD-TO-HEAD TAX COMPARISON · 2026

COUNTRY A Pennsylvania VS COUNTRY B South Carolina

Side-by-side analysis of income tax, effective rates, and take-home pay for Pennsylvania and South Carolina in 2026.

Daniel · CountryTaxCalc Updated August 2026 Tax Comparison 2026
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OVERVIEW
Pennsylvania's flat 3.07% income tax rate beats South Carolina's top marginal rate of 5% at most income levels, but South Carolina's 0% bracket on the first $18,050 of taxable income means SC is actually cheaper for lower earners — the crossover happens around $32,000, above which Pennsylvania pulls ahead and the gap widens the higher you earn. At $100,000 income, Pennsylvania's state tax bill ($2,576) is $717/year lower than South Carolina's ($3,293), and the gap grows to nearly $8,700/year at $500,000. Neither state's average property tax burden is a bargain-breaker either way: Pennsylvania averages roughly 1.49% while South Carolina averages roughly 0.56%, among the lowest in the country, which can meaningfully favor South Carolina for homeowners. Philadelphia residents pay an additional 3.79% city wage tax on top of Pennsylvania's state rate, while South Carolina has no local income tax anywhere in the state. On retirement income, Pennsylvania fully exempts Social Security, pensions, and 401(k)/IRA withdrawals at any age, while South Carolina exempts Social Security and offers a retirement-income deduction (up to $10,000) but taxes remaining private pension and 401(k)/IRA withdrawals at its regular rates.
Section 01

The Big Picture

Top-line rates and effective take-home for a typical earner — including income tax, social contributions, and applicable surcharges.

🔔
COUNTRY A
Pennsylvania
TAX RATE
3.07%
Flat Tax
Flat 3.07% state rate on all income; Philadelphia residents add 3.79% city wage tax
🌴
COUNTRY B
South Carolina
TAX RATE
0-5%
2-Bracket Progressive
0% up to $18,050 of taxable income, 5% above — no local income tax anywhere
TYPICAL ANNUAL DIFFERENCE
Moving from South Carolina → Pennsylvania at $100,000
$717
That's $60/month back in your pocket
Section 02

Tax Savings by Income Level

Net take-home after all income tax, social contributions, and surcharges — for a single employee with no dependents.
GROSS INCOME
🔔 PA TAX
🌴 SC TAX
SAVINGS
10-YEAR
$30,000
$921
$0
-$921 (SC saves)
-$9,210 (SC saves)
$50,000
$1,041
$793
-$248 (SC saves)
-$2,480 (SC saves)
$75,000
$1,808
$2,043
$235
$2,350
$100,000
$2,576
$3,293
$717
$7,170
$150,000
$4,111
$5,793
$1,682
$16,820
$250,000
$7,181
$10,793
$3,612
$36,120
$500,000
$14,856
$23,293
$8,437
$84,370
💡

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🔔

Pennsylvania Pros & Cons

+ PROS
  • Flat 3.07% state income tax beats South Carolina's 5% top rate once income passes roughly $32,000 — saving $235 to $8,437/year at higher incomes
  • Full retirement-income exemption: Social Security, pensions, and 401(k)/IRA withdrawals are all tax-free at the state level, at any age
  • No local income tax outside Philadelphia — most Pennsylvania residents pay only the flat 3.07% state rate with no city add-on
  • Two lower-cost major metros — Philadelphia and Pittsburgh — with strong healthcare, higher-education, and robotics/tech employers
− CONS
  • Nearly triple South Carolina's average property tax rate (~1.49% vs ~0.56%) — can erase some of PA's income-tax advantage on a $300,000+ home
  • Philadelphia residents pay an additional 3.79% city wage tax, pushing their combined rate to 6.86%
  • Pennsylvania levies an inheritance tax on transfers to non-spouse heirs (4.5%-15%) — South Carolina has none
  • Loses on income tax below roughly $32,000 of taxable income, where SC's 0% bracket wins outright
🌴

South Carolina Pros & Cons

+ PROS
  • 0% state income tax on the first $18,050 of taxable income — the cheapest option for lower earners, beating PA by up to $921/year at $30,000 income
  • Among the lowest average property tax rates in the country (~0.56%), less than half Pennsylvania's ~1.49%
  • No local income tax anywhere in the state, unlike Philadelphia's 3.79% add-on for Pennsylvania residents
  • Coastal lifestyle appeal — Charleston, Myrtle Beach, and Hilton Head — plus a retirement-income deduction up to $10,000
− CONS
  • 5% top marginal rate applies to most income above $18,050, costing $235 to $8,437/year more than Pennsylvania once income clears roughly $32,000
  • Private pension and 401(k)/IRA withdrawals beyond the $10,000 retirement deduction are fully taxable at South Carolina's regular rates — Pennsylvania exempts all of these entirely at any age
  • Smaller job market and generally lower average wages than Pennsylvania's Philadelphia and Pittsburgh metro areas
  • Higher hurricane and coastal-storm exposure than most of Pennsylvania
FAQ

Frequently Asked Questions

Is Pennsylvania or South Carolina cheaper for state income tax?

It depends on income. Below roughly $32,000 of taxable income, South Carolina is cheaper because of its 0% bracket on the first $18,050. Above that crossover point, Pennsylvania's flat 3.07% wins — at $100,000, Pennsylvania's $2,576 is $717/year less than South Carolina's $3,293, and the gap grows to $8,437/year at $500,000.

Which state has lower property tax, Pennsylvania or South Carolina?

South Carolina has a much lower average effective property tax rate at roughly 0.56%, compared to Pennsylvania's roughly 1.49% — nearly triple. On a $400,000 home, that's about $2,240/year in South Carolina versus $5,960/year in Pennsylvania, a savings of about $3,720/year that can outweigh Pennsylvania's income-tax advantage for many homeowners.

So which state actually wins on combined income plus property tax?

For most homeowners, South Carolina's much lower property tax outweighs Pennsylvania's income-tax edge unless income is very high. At $100,000 income with a $400,000 home, South Carolina's combined bill is typically lower than Pennsylvania's once the property-tax gap is factored in. Renters, who don't pay property tax directly, will generally see Pennsylvania come out ahead above the $32,000 income crossover.

Does Philadelphia's city wage tax change the comparison?

Yes. Philadelphia residents pay a 3.79% city wage tax on top of the 3.07% state rate — a combined 6.86%. At $100,000 income, that's roughly $6,366 total, well above South Carolina's $3,293, though South Carolina has no city-level income tax anywhere to compare against.

Does either state tax retirement income like 401(k) and IRA withdrawals?

Pennsylvania fully exempts Social Security, pensions, and 401(k)/IRA withdrawals from state tax at any age. South Carolina exempts Social Security and offers a retirement-income deduction of up to $10,000, but taxes remaining private pension and 401(k)/IRA withdrawals at its regular rates. Pennsylvania is meaningfully more retirement-friendly for larger retirement account withdrawals.

How much would I save moving from South Carolina to Pennsylvania?

At $100,000 income, moving from South Carolina to Pennsylvania could save about $717/year in state income tax — but Pennsylvania's much higher property tax will likely offset that for homeowners. At $250,000 income, the income-tax savings grow to about $3,612/year, which more easily outweighs typical property-tax differences for higher earners.

Does Pennsylvania or South Carolina have an inheritance or estate tax?

Pennsylvania levies an inheritance tax on transfers to non-spouse heirs: 4.5% for children and grandchildren, 12% for siblings, and 15% for other beneficiaries. South Carolina has no estate or inheritance tax at all. This is worth factoring into estate planning, especially for Pennsylvania residents leaving assets to non-spouse relatives.

At what income level does Pennsylvania become cheaper than South Carolina?

The crossover is around $32,000 of taxable income. Below that, South Carolina's 0% bracket on the first $18,050 keeps its tax bill lower than Pennsylvania's flat 3.07%. Above roughly $32,000, Pennsylvania's flat rate wins and the advantage grows steadily as income rises.
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MT1940snon-dom regime unchanged since
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