State Income Tax Savings

The amount of reduction in South Carolina income taxes depends on your tax bracket as shown in the two tables below:

South Carolina Tax Bracket Rates (for 2007)

Annual Taxable Income

The South Carolina Department of Revenue Tax tables may change annually. Use this table as an approximation. Do not use this table to compute your South Carolina tax liability.

Over	But Not Over	Calculation
$0	$2,630	$0
$2,630	$5,260	3% times the amount less $79
$5,260	$7,890	4% times the amount less $131
$7,890	$10,520	5% times the amount less $211
$10,520	$13,150	6% times the amount less $316
$13,150+	N/A	7% times the amount less $448

Effects of Catastrophe Savings Account Contributions & Withdrawals on Taxable Income

Action	Federal	South Carolina
Homeowners’ Contribution to Catastrophe Savings Account	No Effect	Deduct on Form SC 1040
Interest on Savings Account	Taxable	Not Taxable (Deduct on Form SC 1040)
Withdrawals for Ineligible Expenses	No Effect	Taxable and subject to 2.5% additional tax (Subject to certain exceptions)
Withdrawals for Qualified Catastrophe Expenses	No Effect	Not Taxable