Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I'll be moving to the Charlotte area in 2021 (working in NC) and plan to rent an apartment for the first year or two.
I see a lot of discussion on this forum about NC vs. SC in terms of property taxes, but my question is about income taxes. It seems that NC's flat rate is less than SC's top rate that kicks in at a pretty low threshold (I haven't done the math yet regarding exemptions, etc. that would apply to me as a single filer).
Curious about whether a lower income tax in NC has figured into people's decision process about choosing NC or SC. Maybe with lower property taxes in SC it winds up being a wash for some. But as someone who plans to rent starting out in the area, it doesn't seem like it would make sense to live in SC when I'm working in NC - since it looks like I'd have to file a return in both states and pay the difference to SC.
Unless rents are that much cheaper in Fort Mill than say South Charlotte or Matthews area where I'd be looking...am I missing anything? Appreciate anyone's thoughts!
Generalized options are meaningless. I'd use an online estimator and plug in my specific numbers, or better yet, pay a tax preparer a small fee to run the numbers.
This mattered a lot more a decade ago when Bev Purdue was still governor. The top rate was I think 7.75% and there was a temporary surtax above that. I was just a common cubicle office worker and still earned enough to enter into the surtax zone.
Nowadays I would not sweat this. I think the top rate in NC is 4.99% and even if SC is lower, it probably is not much of a difference.
Generalized options are meaningless. I'd use an online estimator and plug in my specific numbers, or better yet, pay a tax preparer a small fee to run the numbers.
This mattered a lot more a decade ago when Bev Purdue was still governor. The top rate was I think 7.75% and there was a temporary surtax above that. I was just a common cubicle office worker and still earned enough to enter into the surtax zone.
Nowadays I would not sweat this. I think the top rate in NC is 4.99% and even if SC is lower, it probably is not much of a difference.
I'm actually finding that income taxes are less in NC than in SC (at least comparing top rates). I see NC at a 5.25% flat rate. I assume for many people it makes more sense to live in SC for the lower property taxes even if income taxes are slightly more. For me as a renter I'm thinking it might make more sense to just live on the NC side of the border.
Another tax comparison to consider is the property tax on cars as well as DMV fees. SC has a one time $500 fee (per vehicle) for out of state newcomers when registering their car for the first time. This is in addition to the property tax assessed on the vehicle, tag fees, SC drivers license fee. It can cost a new comer well over $1000 just to get your SC plates. And I am sure there is a cost difference between NC & SC on how much the property tax assessment on a car is.
SC income tax is 7% and NC is 5.25%.
I believe SC property taxes on real estate overall are lower than a comparable property in NC. We have 2 grown kids that have homes on Lincolonton and Catawba counties respectively, and their property taxes are higher then our house in York County and all three of these homes are comparable.
So it's not an easy comparison/clear cut comparison to make as one needs to look at everything and not just one particular tax/fee.
That out of state fee was interesting to read. I remember that California once had a $400 fee like that, which was challenged and struck down in Federal Court as a violation of interstate commerce. I can be a Libertarian conservative in many areas, but I thought that was an overreach of the judiciary. California has special environmental considerations, it seemed sensible to me.
As far as car ownership goes, SC doesn't have yearly inspection. This can become very costly in NC if you thought you could drive a cheap beater - then be told that you cannot ignore your "check engine" light and wind up spending money to bring the emissions back into specification.
As far as car ownership goes, SC doesn't have yearly inspection. This can become very costly in NC if you thought you could drive a cheap beater - then be told that you cannot ignore your "check engine" light and wind up spending money to bring the emissions back into specification.
In NC, if your vehicle can't be brought into compliance with emissions, the vehicle owner can receive an exemption if they prove they have spent $200 in an attempt to correct the problem.
I think South Carolina applies the income tax rate to a different lower basis, which may neutralize the difference in tax rate depending on income level and other details. My understanding is that South Carolina calculates its income tax on federal taxable income, after deductions and exemptions, not adjusted gross income like North Carolina. You have to look at how the tax is calculated and not just what tax rate is applied.
I think South Carolina applies the income tax rate to a different lower basis, which may neutralize the difference in tax rate depending on income level and other details. My understanding is that South Carolina calculates its income tax on federal taxable income, after deductions and exemptions, not adjusted gross income like North Carolina. You have to look at how the tax is calculated and not just what tax rate is applied.
A married couple with a gross income of $75,000 taking the standard deduction would pay $2,809 in state income tax in NC, and $2,991 in SC.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
