Updated April 26, 2026
Capital Gains: 1.99%-5.21% (44% deduction for net long-term capital gains)Income Tax: 1.99%-5.21%Tax Summary
South Carolina treats cryptocurrency as property, following federal IRS guidelines. Capital gains are taxed at state income tax rates with a 44% deduction for long-term gains. Mining and staking rewards are taxed as ordinary income.
Quick facts for South Carolina, United States
Capital Gains Tax
1.99%-5.21% (44% deduction for net long-term capital gains)Income Tax Rate
1.99%-5.21%Capital Gains Tax
1.99%-5.21% (44% deduction for net long-term capital gains)• Crypto capital gains classified as short-term (≤1 year) or long-term (>1 year) per federal rules.
• Taxed at ordinary SC income tax rates after adjustments.
• 44% deduction allowed for net long-term capital gains on SC return.
• No state-specific exemptions or thresholds beyond federal $3,000 loss limit.
• Taxed at ordinary SC income tax rates after adjustments.
• 44% deduction allowed for net long-term capital gains on SC return.
• No state-specific exemptions or thresholds beyond federal $3,000 loss limit.
Income Tax
1.99%-5.21%• Mining income taxed as ordinary income upon receipt at fair market value.
• Staking rewards taxed as ordinary income when received.
• No special deductions for crypto income; follows federal ordinary rates.
• Reported as other income or business income on federal forms, flows to state.
• Staking rewards taxed as ordinary income when received.
• No special deductions for crypto income; follows federal ordinary rates.
• Reported as other income or business income on federal forms, flows to state.
Reporting Requirements
• Report all crypto transactions on federal forms (8949, Schedule D, Sch 1); adjustments on SC1040.
• Claim 44% LTCG deduction on SC1040 line 33 or Sch NR.
• File SC1040 by April 15 (or extension to Oct 15).
• Nonresidents apportion via Sch NR.
• Claim 44% LTCG deduction on SC1040 line 33 or Sch NR.
• File SC1040 by April 15 (or extension to Oct 15).
• Nonresidents apportion via Sch NR.
Special Notes
• 2026 tax restructure: 1.99% on first $30,000 taxable income, 5.21% on excess (minus credit).
• Full conformity to federal crypto tax treatment; no unique state rules.
• No sales or use tax on crypto purchases or transactions.
• Recent bills for exemptions did not pass.
• Full conformity to federal crypto tax treatment; no unique state rules.
• No sales or use tax on crypto purchases or transactions.
• Recent bills for exemptions did not pass.
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: 0-3.7% (50% deduction on long-term gains)Income: 0-3.7%
California
CG: 1%-13.3%Income: 1%-13.3%
Colorado
CG: 4.4% (flat rate)Income: 4.4% (flat rate)
Connecticut
CG: 2-6.99%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%Income: 5.19%
Hawaii
CG: Varies: short-term 1.4-11%, net long-term up to 7.25%Income: 1.4-11%
Idaho
CG: 0-5.3%Income: 0-5.3%
Illinois
CG: 4.95% (flat rate)Income: 4.95% (flat rate)
Indiana
CG: 2.95% state + 0.5%-3% local county (varies)Income: 2.95% state + 0.5%-3% local county (varies)
Iowa
CG: 3.8%Income: 3.8%
Kansas
CG: 5.2%-5.58%Income: 5.2%-5.58%
Kentucky
CG: 3.5%Income: 3.5%
Louisiana
CG: 3%Income: 3%
Maine
CG: 5.8%-9.15% (taxed as ordinary income)Income: 5.8%-9.15%
Maryland
CG: 2%-6.5% state + 2.25%-3.2% local; +2% surtax on net gains if FAGI >$350,000Income: 2%-6.5% state + 2.25%-3.2% local (varies by county)
Massachusetts
CG: 5% (LTCG), 8.5% (STCG) + 4% surtax >$1,083,150Income: 5% + 4% surtax >$1,083,150
Michigan
CG: 4.25%Income: 4.25%
Minnesota
CG: 5.35%-9.85% (+1% NIIT on net investment income > $1M)Income: 5.35%-9.85%
Mississippi
CG: 0% on first $10,000; 4.4% thereafterIncome: 0% on first $10,000; 4.4% thereafter
Missouri
CG: 0%Income: 2%-4.7%
Montana
CG: Long-term: 3.0%-4.1%; Short-term: 4.7%-5.65%Income: 4.7%-5.65%
Nebraska
CG: 2.46%-4.55% (taxed as ordinary income)Income: 2.46%-4.55%
Nevada
CG: 0%Income: 0%
New Hampshire
CG: 0%Income: 0%
New Jersey
CG: 1.4%-10.75% (as ordinary income)Income: 1.4%-10.75%
New Mexico
CG: 1.5% - 5.9%Income: 1.5% - 5.9%
New York
CG: 4-10.9% (state) + 3.078-3.876% (NYC)Income: 4-10.9% (state) + 3.078-3.876% (NYC)
North Carolina
CG: 3.99% (taxed as ordinary income)Income: 3.99%
North Dakota
CG: Short-term: 0%-2.5%; Long-term: effective 0%-1.5% after 40% exclusionIncome: 0%-2.5%
Ohio
CG: 2.75% (flat on income > $26,050)Income: 2.75% (flat on income > $26,050)
Oklahoma
CG: 0%-4.5%Income: 0%-4.5%
Oregon
CG: 4.75%-9.9%Income: 4.75%-9.9%
Pennsylvania
CG: 3.07% (flat rate)Income: 3.07% (flat rate)
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%Income: 4.5%
Vermont
CG: 3.35%-8.75%Income: 3.35%-8.75%
Virginia
CG: 2-5.75%Income: 2-5.75%
Washington
CG: 7% on long-term gains exceeding $278,000 (2025 threshold, inflation-adjusted)Income: 0% (no state income tax)
West Virginia
CG: 2.11% - 4.58% (taxed as ordinary income)Income: 2.11% - 4.58%
Wisconsin
CG: 3.5%-7.65% (30% subtraction for long-term)Income: 3.5%-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 are taxed at state income tax rates with a 44% deduction for long-term gains. Mining and staking rewards are taxed as ordinary income.
What is the crypto capital gains tax rate in South Carolina?
The state-level capital gains treatment in South Carolina is currently listed as 1.99%-5.21% (44% deduction for net long-term capital gains).
How do I report crypto taxes in South Carolina?
• Report all crypto transactions on federal forms (8949, Schedule D, Sch 1); adjustments 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.