Side-by-side tax comparison between North Carolina (3.99% top rate, flat) and South Carolina (6% top rate, graduated). See which state lets you keep more at every salary level, and how cost of living changes the picture.
North Carolina uses a flat income tax (3.99% flat) while South Carolina has a graduated system (0-3-6%). On a $100K salary, North Carolina takes $3,990 in state and local taxes compared to South Carolina’s $3,900 \u2014 a difference of $90.
Because North Carolina has flat brackets while South Carolina is graduated, the gap between them changes at different income levels. North Carolina’s flat rate is predictable, while South Carolina’s graduated brackets may benefit lower earners but penalize higher incomes.
South Carolina wins at 10 out of 10 salary levels tested. The advantage exists but is modest across the income spectrum.
| Salary | North Carolina | South Carolina | Difference | Winner |
|---|---|---|---|---|
| $40K | $32,724 | $32,760 | +$36 | South Carolina |
| $50K | $40,360 | $40,405 | +$45 | South Carolina |
| $60K | $47,996 | $48,050 | +$54 | South Carolina |
| $75K | $58,545 | $58,613 | +$68 | South Carolina |
| $100K | $75,135 | $75,225 | +$90 | South Carolina |
| $120K | $88,407 | $88,515 | +$108 | South Carolina |
| $150K | $107,766 | $107,901 | +$135 | South Carolina |
| $200K | $140,907 | $141,087 | +$180 | South Carolina |
| $250K | $173,289 | $173,514 | +$225 | South Carolina |
| $300K | $203,359 | $203,629 | +$270 | South Carolina |
Take-home pay only tells part of the story. North Carolina has a cost of living index of 95 while South Carolina is at 92 (national average = 100).
With similar costs of living (95 vs 92), the tax difference is the primary factor. What you see in raw take-home pay is essentially what you get in purchasing power: $79,089 in North Carolina vs $81,766 in South Carolina.
For a single earner at $100K filing jointly, take-home becomes $80,720 in North Carolina and $80,810 in South Carolina \u2014 a difference of $90. The gap remains similar regardless of filing status.
On paper, moving from North Carolina to South Carolina would save $90/year on a $100K salary, or $450 over 5 years. But relocation involves real costs: moving expenses, potentially buying/selling a home, changing jobs, and adjusting to a new community.
At $90/year, the tax difference alone likely isn’t worth relocating for. Other factors — job market, lifestyle, family — should drive the decision. The tax savings are a nice bonus if you’re already considering the move for other reasons.