Homeowners in Georgia or South Carolina who live near state lines enjoy more freedom than other state residents when it comes to choosing where to live. A simple move across the border could save you big bucks at tax time, yet still allow you to stay close to work, friends and family. Compare income tax rates in these two southern states to find out how a move to one of these locales could impact your budget.
State Income Taxes in Georgia
Georgia residents file state income taxes using Form 500. The state has 6 tax brackets, with a top rate of 6 percent for those with a taxable income in excess of $7,000. Those with a taxable income of less than $750 pay 1 percent, while the tax rate rises to 2 percent for taxable income ranging from $750 to $2,250. Residents with a taxable income of $2,250 to $3,750 pay 3 percent, while those earning $3,750 to $5,250 pay 4 percent. The tax rate is 5 percent for taxpayers with a taxable income ranging from $5,250 to $7,000. The standard deduction for singles is $2,300 as of 2012, while the standard deduction for married couples is $3,000. Taxpayers with a taxable income below $100,000 should refer to the tax tables in Form 500 to learn how much tax they will pay. Those with taxable income over $100,000 can calculate taxes by multiplying taxable income by 6 percent. The state of Georgia collected $726 per person in state income taxes in 2010 according to the Tax Foundation.
State Income Taxes in South Carolina
South Carolina residents use Form SC1040 to file state income taxes. The state has five tax brackets, with a maximum rate of 7 percent for those with a taxable income in excess of $13,800. Residents with a taxable income of $2,750 or lower pay no taxes, while those earning $2,761 and $5,520 pay 3 percent. The tax rate increases to 4 percent for those earning $5,521 to $8,280, while those earning between $8,281 and $11,040 pay 5 percent. For taxpayers earning $11,041 to $13,800, the state income tax rate is 6 percent.The standard deduction for singles is $5,800 in 2012, while the standard deduction for married couples is $11,600. Those with a taxable income below $100,000 can calculate taxes using the tax tables provided with Form SC1040. Taxpayers with a taxable income exceeding $100,000 can estimate taxes by multiplying taxable income by 7 percent, then subtracting $476 as of 2012. The Tax Foundation reports that the South Carolina government collected $473 in state taxes per person in 2010.
Other State and Local Taxes
Income taxes don't paint a complete picture of the tax burden faced by Georgia and South Carolina residents. When deciding where to live, it's helpful to also compare sales and property taxes. Georgia maintains a 4 percent sales tax rate as of 2012 according to the Tax Foundation, compared to a 6 percent sales tax in South Carolina. When it comes to property taxes, however, tax payments in Georgia tend to exceed those in South Carolina. The Tax Foundation reveals that Georgia took in $1,092 in property taxes per capita in 2009, compared to just $970 per capita in South Carolina.
As of January 2013, both Georgia and South Carolina have a state income tax in place. In January 2013, Georgia politicians introduced a bill to gradually eliminate the state income tax by 0.5 percent per year until the tax is completely phased out. While South Carolina has no plans to eliminate its state income tax as of January 2013, the American Legislative Exchange Council reports that state politicians have proposed getting rid of state's corporate income tax.
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