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HEAD-TO-HEAD TAX COMPARISON · 2026

COUNTRY A Texas VS COUNTRY B South Carolina

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

Daniel · CountryTaxCalc Updated June 2026 Tax Comparison 2026
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OVERVIEW
Texas has zero state income tax, while South Carolina applies a simplified structure of 0% up to $18,050 and then 5% on income above that threshold — meaning most working adults effectively pay close to 5% on the bulk of their income. On $100,000, Texas saves approximately $4,050/year. South Carolina has emerged as a major destination for relocating retirees and remote workers, particularly to the Lowcountry (Charleston, Hilton Head) and the Upstate (Greenville, Spartanburg). Both states offer mild climates, no inheritance tax, and growing economies. South Carolina's property taxes are considerably lower than Texas's, partially offsetting the income tax disadvantage for homeowners. South Carolina also offers generous retirement income exemptions that significantly reduce the income tax burden for retirees.
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
Texas
TAX RATE
0%
No Income Tax
No state income tax — Texas constitution prohibits personal income tax
🌴
COUNTRY B
South Carolina
TAX RATE
0-5%
Progressive
0% up to $18,050, then 5% flat above (effectively 5% for most earners)
TYPICAL ANNUAL DIFFERENCE
Moving from South Carolina → Texas at $100,000
$4,050
That's $338/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
⭐ TX TAX
🌴 SC TAX
SAVINGS
10-YEAR
$50,000
$0
$1,598
$1,598
$15,980
$75,000
$0
$2,848
$2,848
$28,480
$100,000
$0
$4,098
$4,098
$40,980
$150,000
$0
$6,598
$6,598
$65,980
$200,000
$0
$9,098
$9,098
$90,980
💡

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⭐

Texas Pros & Cons

+ PROS
  • Zero income tax: Texas saves $4,050/year on $100k vs South Carolina's effective ~5% rate
  • Larger metros: DFW (8M), Houston (7.3M), Austin (2.3M) vs Greenville (0.9M), Charleston (0.8M)
  • Stronger job diversity: Energy, finance, tech, aerospace all well-represented across Texas
  • No state income tax on any income type: Texas $0 on wages, investments, retirement income alike
  • Airport connectivity: DFW, Houston Bush/Hobby, Austin-Bergstrom — major international hubs
− CONS
  • High property tax: Texas effective rate ~1.8% vs South Carolina ~0.57% — $5,000-$10,000 more/year
  • Extreme summer heat: Texas heat more intense and sustained than South Carolina coastal areas
  • Higher sales tax: Up to 8.25% Texas combined vs up to 9% in some SC localities
  • Hurricane risk: Houston and coastal TX exposed to major hurricanes; 2017 Harvey, 2008 Ike examples
  • No beach culture outside Galveston: Texas Gulf Coast less iconic than SC's Grand Strand/Lowcountry
🌴

South Carolina Pros & Cons

+ PROS
  • Low property tax: ~0.57% effective rate vs Texas ~1.8% saves $5,000-$10,000/year on homeownership
  • Retirement benefits: Generous SC retirement income deductions reduce income tax significantly for retirees
  • Iconic coastal cities: Charleston (historic, charming), Hilton Head (resort), Myrtle Beach (tourism)
  • BMW and manufacturing: Upstate SC is thriving with BMW, Michelin, Volvo — strong blue-collar economy
  • Mild coastal climate: Gentler heat vs Texas interior; ocean breezes along the Lowcountry coast
− CONS
  • Income tax: Effective 5% on most income costs $4,050 on $100k, $9,098 on $200k vs Texas's $0
  • Smaller job market: No metro close to DFW or Houston in size or diversity
  • Hurricane risk: Charleston and coastal SC directly in hurricane paths (2019 Dorian, 1989 Hugo)
  • Humid summers: Charleston and coast have intense humidity June-September
  • Education rankings: SC ranks in bottom 10 nationally for K-12 education outcomes
FAQ

Frequently Asked Questions

How does South Carolina's income tax work in 2026?

South Carolina simplified its tax code starting 2022. For 2026, SC taxes income at 0% on the first $18,050 and 5% on all income above $18,050. This means most working adults with income over $18,050 pay 5% on the majority of their income. On $100,000: tax = 5% × ($100,000 - $18,050) = 5% × $81,950 = $4,098. Texas charges $0. The simplification was a significant improvement over SC's old 7-bracket system (which topped out at 7%), reducing the top rate substantially.

Does South Carolina's property tax advantage offset its income tax vs Texas?

For homeowners, yes — partially or fully. South Carolina's effective property tax rate is ~0.57%, vs Texas's ~1.8%. On a $400,000 home: SC pays ~$2,280/year, Texas pays ~$7,200/year — difference of $4,920/year. At $100k income, SC income tax costs $4,098 but saves $4,920 in property tax — resulting in SC costing about $822/year less than Texas in combined income+property taxes. At $200k income, Texas income tax savings ($9,098) exceed the property tax advantage, and Texas wins. Break-even point depends heavily on home value vs income.

Is South Carolina good for retirees vs Texas?

South Carolina offers compelling retirement benefits. SC exempts the first $15,000 of retirement income per person from income tax (or the full Social Security equivalent) for those 65+. Military retirees can exempt all retirement pay. This means a retiree with $60,000 in income ($30,000 per person if married) could owe very little SC income tax. Texas owes $0 on all retirement income but has much higher property taxes. For retirees who own a $400k home, South Carolina may actually be cheaper overall ($2,280 SC property tax + reduced income tax vs $7,200 TX property tax + $0 income tax). South Carolina wins for lower-income retirees; Texas wins for higher-income retirees.

Charleston vs Austin or Dallas: which is better for relocation?

Charleston: iconic historic city, excellent food/culture, beaches nearby, lower property taxes, lower cost of living ($350-450k median), but smaller job market and 5% income tax. Austin: massive tech ecosystem (Apple, Tesla, Oracle), no income tax (saves $4,050+/year), much larger metro — but $500k+ median homes, high property taxes (~$9,000/year on $500k home), brutal summer heat without ocean breeze. Dallas: largest metro in the South, diversified economy, more affordable than Austin ($350-400k median), no income tax. For quality of life seekers: Charleston wins. For career-driven professionals: Dallas or Austin wins.

Which has better overall taxes for a family earning $150,000 — Texas or South Carolina?

At $150,000 income owning a $450,000 home: Texas: $0 income tax + $8,100 property tax = $8,100 total. South Carolina: $6,598 income tax + $2,565 property tax = $9,163 total. Texas saves ~$1,063/year on this combined basis. At $200,000 with $500,000 home: Texas: $0 + $9,000 = $9,000 vs SC: $9,098 + $2,850 = $11,948 — Texas saves $2,948/year. The higher the income, the more Texas wins, because income tax savings outpace the property tax cost. At incomes below $75k with lower-value homes, South Carolina can actually be cheaper in combined taxes.
From the brief
CY0%dividends, 60-day rule
PT20%flat rate, tech workers
GB39%non-dom regime gone
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