SC State Income Tax (sales, house prices, calculation)

[meeper34]

Hi,

My wife and I are moving to SC (Indian Land) next week, and I am super excited about it. We are moving because we really like the area, the property taxes are low, and we could not afford a home in the Philadelphia area (house prices are about 50% less).

I have a question about the state income tax in SC, but I don't want to offend anyone (I guess this is sort of a political question). Just comparing the tax structures in PA and SC, I am confused by the progressive state income tax in SC. The state income tax in SC is 7% (for anything past $12,301) which compared to PA's flat rate of 3% is pretty high (even when adding in the 1% local tax for PA suburbs). PA is one of the few states with a flat state income tax (which I enjoyed because it makes tax calculations a lot easier). Then, in SC you have property taxes for things like vehicles, which can be viewed as progressive taxes as well (car worth more means higher taxes). I viewed SC to be a pretty conservative state, so I guess I am confused by the tax structures and how they don't seem to reflect the values of the state. Like I said, we are moving because lower property taxes, housing prices, and quality of life, and I am not trying to stir the pot or anything, I am just genuinely curious about this. Please correct me if I am wrong in any of my assumptions! Has anyone in the state ever proposed a flat tax or anything of the sort?

Good day!

[Charles94]

SC Income Tax is a flat tax - 7% for income over $13k.

The state made major changes to sales and property tax structure last year. Property Tax (primary residence) was reduced ~ 1/3 and sales tax (consumption tax) was increased 2%.

Re: vehicle tax, I own two 18 year old cars. My property tax is about $19 on each vehicle.