South Carolina vs Tennessee: Tax & Cost Comparison

2026

Side-by-side South Carolina vs Tennessee comparison: state income tax, sales tax, property tax, cost of living, and minimum wage for 2026. Southeast retiree pairing — SC's 7% top + 0.50% property tax against TN's no income tax + 0.55% property tax. Both popular for Charlotte-area retirees.

Written and reviewed by Konstantin Iakovlev · Methodology · Updated

Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.

Tax / Cost Factor South Carolina Tennessee
State income tax (top rate) 6.00% (progressive) None
State sales tax 6.00% 7.00%
Avg. effective property tax 0.56% 0.56%
Minimum wage (2026) $7.25/hr $7.25/hr
State Disability Insurance (SDI) No No
Paid Family Leave No No
Median home price (Q4 2025) $320,000 $350,000
Foreclosure type judicial non-judicial
BEA Regional Price Parity (2024) 94.3 91
Median household income (2024) $65,170 $65,730
Median 2-bedroom rent (Q4 2025) $1,560/mo $1,530/mo

Worked example: $75,000 single filer, 2026

For a single filer earning $75,000 in 2026, the rough state-tax burden comparison:

  • South Carolina: estimated state income tax ≈ $3,150, plus federal income tax (≈ $7,300 at 22% marginal), FICA $5,738, sales tax 6.00% on consumption.
  • Tennessee: estimated state income tax $0 (no state income tax), plus federal $7,300, FICA $5,738, sales tax 7.00% on consumption.

Property tax depends entirely on home value. On a $400,000 home: South Carolina ≈ $$2,240/year; Tennessee ≈ $$2,240/year.

Why this comparison? Southeast retiree pairing — SC's 7% top + 0.50% property tax against TN's no income tax + 0.55% property tax. Both popular for Charlotte-area retirees.

Frequently asked questions

Which is cheaper to live in: South Carolina or Tennessee?

By BEA Regional Price Parity (2024), South Carolina has a cost-of-living index of 94.3 and Tennessee is 91 (US average = 100). Median household income: South Carolina $65,170, Tennessee $65,730. Median 2-bedroom rent: South Carolina $1,560/mo, Tennessee $1,530/mo. Tennessee is the lower-cost state by this measure.

Does South Carolina or Tennessee have lower income tax in 2026?

Tennessee has no state income tax; South Carolina has a top rate of 6.00%. Tennessee is the clearly lower-income-tax state.

What about property taxes in South Carolina vs Tennessee?

South Carolina's average effective property tax rate is 0.56% (e.g., $2,240/year on a $400,000 home). Tennessee's rate is 0.56% ($2,240/year on $400K). Tennessee has the lower property tax burden.

Where is the minimum wage higher: South Carolina or Tennessee?

South Carolina's 2026 minimum wage is $7.25/hour; Tennessee's is $7.25/hour. Both have the same minimum wage.