2026 tax year · South Carolina
Marketplace seller taxes in South Carolina
Etsy, eBay, Shopify and the rest report your gross and withhold nothing. The gap between that and what you are taxed on is your costs, in South Carolina that gap is worth $6,813 in tax.
Take a driver who grossed $45,000 over 18,000 business miles. After mileage at 74.3 cents and the rest of the stack, worked through on the marketplace seller page $26,775 comes off and $18,225 is left as taxable profit. That profit is what South Carolina and the IRS charge against.
What that leaves you owing in South Carolina
South Carolina uses graduated 2026 income tax brackets topping out at 5.21%, across 2 brackets, on top of federal income tax and self-employment tax.
| Self-employment tax | $2,575 |
| Federal income tax | $67 |
| South Carolina income tax | $337 |
| Total tax | $2,979 |
| Effective rate on gross | 6.6% |
Earning more in South Carolina
A single filer taking the standard deduction, this work as the only income, the calculator above handles the other filing statuses. Miles rise with earnings, so the deduction rises too, and the effective rate on gross climbs more slowly than it would for someone whose income grew without expenses attached:
| Volume | Gross | Mileage off | Taxable profit | South Carolina tax | Total tax | Rate on gross |
|---|---|---|---|---|---|---|
| Part-time | $15,000 | $0 | $15,000 | $277 | $2,397 | 16.0% |
| Steady side income | $45,000 | $0 | $45,000 | $1,213 | $9,792 | 21.8% |
| Full-time | $72,000 | $0 | $72,000 | $2,520 | $17,324 | 24.1% |
South Carolina specifics that change the number
On the 2026 rate itself: two-bracket system starting 2026: 1.99% and 5.21%.
Selling into and out of South Carolina
Income tax follows you: South Carolina taxes your profit wherever the buyer was. Sales tax does not. Marketplace facilitator laws make the platform collect and remit sales tax on your behalf in most states, which is why a seller can have customers in all fifty and still file only one income tax return. Selling off-platform is where that stops being true.
On $18,225 of profit, what the states around South Carolina would charge:
| State | Its tax | vs South Carolina |
|---|---|---|
| North Carolina | $727 | +$365 |
| Georgia | $946 | +$583 |
- North Carolina would take $365 more, $727 against South Carolina's $363.
- Georgia would take $583 more, $946 against South Carolina's $363.
Marketplace seller tax questions in South Carolina
How much should a South Carolina seller set aside?
About 6.6% of gross on the $45,000 example, $2,979 across self-employment tax, federal income tax and $337 to South Carolina. In practice that means moving about $66 of every $1,000 payout into a separate account the day it lands, and sending roughly $745 to the IRS each quarter, no platform withholds any of this for you. Set aside from each payout rather than finding it in April.
Does the $45,000 on my 1099-NEC match what South Carolina taxes?
No. South Carolina taxes profit, not gross. After $26,775 of deductions the taxable figure is $18,225, so the South Carolina bill is $337 rather than what gross alone would suggest. The form reports what the platform paid out, it knows nothing about your costs, and no one subtracts them for you. On this example 60% of the gross never becomes taxable income, but only for the seller who kept the records to prove it.