Georgia State Income Tax Vs. South Carolina Income Tax

While the neighboring states of Georgia and South Carolina both levy income tax on residents, the tax brackets are slightly different in both states. Both states offer exemptions on income for single and married filers, as well as exemptions for dependents.

In South Carolina, the lowest tax bracket ranges from $0 to $2,470 of taxable income. Residents in this bracket do not pay any state income tax as of 2011.

There are five higher brackets with corresponding tax rates. If your taxable income falls between $2,741 and $5,480, you pay a rate of 3 percent. Between $5,481 and $8,220, the rate is 4 percent; between $8,221 and $10,960, the rate is 5 percent; between $10,961 and $13,700, the rate is 6 percent; for income of $13,701 and up, the rate is 7 percent.

Georgia also has six state income tax brackets, but Georgians do not escape taxes even at the lowest bracket. If you are single, you pay 1 percent on the first $750 of income. The tax percentage then increases on a sliding scale as income rises. Georgia levies a tax of 2 percent on income between $751 and $2,250; 3 percent on income between $2,251 and $3,750; 4 percent on income between $3,751 and $5,250; 5 percent on income between $5,251 and $7,000; and 6 percent on all income over $7,000.

There are six tax brackets for married couples in Georgia, with the tax rates topping out at 6 percent for incomes at $10,000 and above. In Georgia, taxpayers who are at least 62 years of age may exclude the first $35,000 of their retirement income from state income taxes. Georgia also offers tax credits for income taxes paid to other states and for low-income taxpayers (with federal adjusted gross income less than $19,999).

Both Georgia and South Carolina exempt some earnings from state income tax. In Georgia, single filers may exempt $2,700 of income, and married filers $5,400. There is also a $3,000 exemption for each dependent. In South Carolina, the exemptions are $3,650 for single filers, and $7,300 for married filers. The dependent exemption stands at $3,650.