Updated March 29, 2026
Capital Gains: 0%-6% (44% deduction on net LTCG)Income Tax: 0%-6%Tax Summary
South Carolina treats cryptocurrency as property, following federal IRS guidelines. Capital gains from crypto sales are subject to state income tax rates of 0%-6%, with a 44% deduction allowed for net long-term gains. Crypto income from mining or staking is taxed as ordinary income at 0%-6%.
Quick facts for South Carolina, United States
Capital Gains Tax
0%-6% (44% deduction on net LTCG)Income Tax Rate
0%-6%Capital Gains Tax
0%-6% (44% deduction on net LTCG)• Crypto capital gains classified as short-term (ordinary) or long-term per federal rules (>1 year holding).
• SC allows 44% deduction on net long-term capital gains under SC Code §12-6-1120.
• Short-term gains taxed at full ordinary income rates (0%-6%).
• No state-specific exemptions or thresholds for crypto gains.
• SC allows 44% deduction on net long-term capital gains under SC Code §12-6-1120.
• Short-term gains taxed at full ordinary income rates (0%-6%).
• No state-specific exemptions or thresholds for crypto gains.
Income Tax
0%-6%• Mining income taxed as ordinary income in year mined/received.
• Staking rewards taxed as ordinary income upon receipt.
• Follows federal classification; no SC-specific deviations.
• Taxed at graduated individual income tax rates (0%-6%).
• Staking rewards taxed as ordinary income upon receipt.
• Follows federal classification; no SC-specific deviations.
• Taxed at graduated individual income tax rates (0%-6%).
Reporting Requirements
• Report all crypto transactions impacting federal AGI on SC1040.
• Adjust for SC modifications (e.g., 44% LTCG deduction) on state return.
• No crypto-specific state forms; use SC1040 and instructions.
• Annual deadline: April 15 (extensions to October 15 available).
• Adjust for SC modifications (e.g., 44% LTCG deduction) on state return.
• No crypto-specific state forms; use SC1040 and instructions.
• Annual deadline: April 15 (extensions to October 15 available).
Special Notes
• 44% LTCG deduction explicitly applies to cryptocurrency per tax resources.
• SC DOR provides no specific crypto guidance; conforms to federal rules.
• Bill 3751 (2025-2026) pending in Ways and Means; proposes full exemption of digital asset income from SC gross income.
• SC DOR provides no specific crypto guidance; conforms to federal rules.
• Bill 3751 (2025-2026) pending in Ways and Means; proposes full exemption of digital asset income from SC gross income.
Other US States
Compare state-level crypto tax differences across the United States.
Alabama
CG: 2%-5%Income: 2%-5%
Alaska
CG: 0%Income: 0%
Arizona
CG: 2.5%Income: 2.5%
Arkansas
CG: 0% - 3.9%Income: 0% - 3.9%
California
CG: 1%-13.3% (ordinary income rates)Income: 1%-13.3% (ordinary income rates)
Colorado
CG: 4.4%Income: 4.4%
Connecticut
CG: 2%-6.99% (taxed as ordinary income)Income: 2%-6.99%
Delaware
CG: 2.2%-6.6%Income: 2.2%-6.6%
District of Columbia
CG: 4-10.75% (taxed as ordinary income)Income: 4-10.75%
Florida
CG: 0%Income: 0%
Georgia
CG: 5.19% (taxed as ordinary income)Income: 5.19% (flat rate)
Hawaii
CG: 7.25% (elective on net capital gains); short-term: 1.4%-11%Income: 1.4%-11%
Idaho
CG: 0% up to $4,811 (single) / $9,622 (married); 5.3% thereafterIncome: 0% up to $4,811 (single) / $9,622 (married); 5.3% thereafter
Illinois
CG: 4.95%Income: 4.95%
Indiana
CG: 2.95% state + 0.5%-3% county (varies by location)<argumentIncome: 2.95% state + 0.5%-3% county (varies by location)<argument
Iowa
CG: 3.8% (flat rate, taxed as ordinary income)Income: 3.8% (flat rate)
Kansas
CG: 5.2% - 5.58%Income: 5.2% - 5.58%
Kentucky
CG: 3.5% (flat rate)Income: 3.5% (flat rate)
Louisiana
CG: 3%Income: 3%
Maine
CG: 5.8%-7.15%Income: 5.8%-7.15%
Maryland
CG: 2%-6.5% state + 2.25%-3.3% local + 2% surtax on net gains (FAGI > $350k)<grok:render type="render_inlIncome: 2%-6.5% state + 2.25%-3.3% local
Massachusetts
CG: 5% (long-term), 8.5% (short-term)Income: 5% flat + 4% surtax over $1,083,150
Michigan
CG: 4.25%Income: 4.25%
Minnesota
CG: 5.35%-9.85%; +1% on net investment income over $1MIncome: 5.35%-9.85%
Mississippi
CG: 4.4%Income: 4.4%
Missouri
CG: 0%Income: 0-4.7%
Montana
CG: Short-term: 4.7%-5.65%; Long-term: 3%-4.1%Income: 4.7%-5.65%
Nebraska
CG: 2.46%-5.20% (tax year 2025); top rate 4.55% (2026)Income: 2.46%-5.20% (tax year 2025); top rate 4.55% (2026)
Nevada
CG: 0%Income: 0%
New Hampshire
CG: 0%Income: 0%
New Jersey
CG: 1.4%-10.75% (taxed as ordinary income)Income: 1.4%-10.75%
New Mexico
CG: 1.5% - 5.9% (with deduction)Income: 1.5% - 5.9%
New York
CG: 4%-10.9% (state ordinary income rates); +3.078%-3.876% NYCIncome: 4%-10.9% (state ordinary income rates); +3.078%-3.876% NYC
North Carolina
CG: 4.25% (TY 2025); 3.99% (TY 2026)Income: 4.25% (TY 2025); 3.99% (TY 2026)
North Dakota
CG: Short-term: 1.95%-2.5%; Long-term: effective 1.17%-1.5% (after 40% exclusion)Income: 1.95%-2.5%
Ohio
CG: 0%-3.125%Income: 0%-3.125%
Oklahoma
CG: 0.25% - 4.5%Income: 0.25% - 4.5%
Oregon
CG: 4.75%-9.9% (taxed as ordinary income)Income: 4.75%-9.9%
Pennsylvania
CG: 3.07%Income: 3.07%
Rhode Island
CG: 3.75%-5.99%Income: 3.75%-5.99%
South Dakota
CG: 0%Income: 0%
Tennessee
CG: 0%Income: 0%
Texas
CG: 0%Income: 0%
Utah
CG: 4.5% (flat, as ordinary income)Income: 4.5% (flat rate)
Vermont
CG: 3.35%-8.75% (taxed as ordinary income)Income: 3.35%-8.75%
Virginia
CG: 2%-5.75%Income: 2%-5.75%
Washington
CG: 7%Income: 0%
West Virginia
CG: 2.22%-4.82%Income: 2.22%-4.82%
Wisconsin
CG: 3.50%-7.65% (30% deduction for long-term gains)Income: 3.50%-7.65%
Wyoming
CG: 0%Income: 0%
South Carolina Crypto Tax FAQ
Is cryptocurrency taxed in South Carolina?
South Carolina treats cryptocurrency as property, following federal IRS guidelines. Capital gains from crypto sales are subject to state income tax rates of 0%-6%, with a 44% deduction allowed for net long-term gains. Crypto income from mining or staking is taxed as ordinary income at 0%-6%.
What is the crypto capital gains tax rate in South Carolina?
The state-level capital gains treatment in South Carolina is currently listed as 0%-6% (44% deduction on net LTCG).
How do I report crypto taxes in South Carolina?
• Report all crypto transactions impacting federal AGI on SC1040.
Compare With Other Countries
Disclaimer: This information is AI-generated and for educational purposes only. Tax laws are complex and subject to change. Always consult with a qualified tax professional for advice specific to your situation.