South Carolina has one of the lowest per capita tax rates in the country. The state's tax structure includes: - A graduated individual income tax of 3-7% after the first $2,800 of income is exempt from tax. Several deductions are allowed including for retirement income and military pay. - Property taxes on real and personal property assessed and collected locally. The average millage rate is 289 mills. - A 6% state sales tax and possible additional local sales taxes. Several items are exempt including unprepared food and prescription drugs. - No estate or gift taxes.