What South Carolina tax interest rate applied from October 1 through December 31, 2023, including eligible refund interest?

Plain-English summary

South Carolina's listed tax interest rate rose to 8% for October 1 through December 31, 2023, after being 7% for the first nine months of the year. Interest generally compounded daily; estimated-tax underpayments used simple interest.

The fiscal-year 2023-2024 budget reduced eligible refund interest by three percentage points, making the eligible Q4 refund rate 5%.

What this means for you

Use 8% for ordinary South Carolina tax interest in the fourth quarter of 2023 and 5% for eligible refund interest during that period.

Common questions

Q: What was the Q4 2023 listed rate? A: 8%.

Q: What was the eligible refund rate? A: 5%.

Citations and references

• S.C. Code Ann. § 12-54-25
• 2022 S.C. Act No. 239, Provisos 41.2 and 117.82
• S.C. Code Ann. § 12-4-320; SC Revenue Procedure #09-3

Subject

Interest Rate

Source

• Landing page: https://dor.sc.gov/advisory-opinion-search
• Original PDF: https://dor.sc.gov/sites/dor/files/policies/IL23-10.pdf

Original ruling text

STATE OF SOUTH CAROLINA

DEPARTMENT OF REVENUE
300A Outlet Pointe Blvd., Columbia, South Carolina 29210
P.O. Box 125, Columbia, South Carolina 29214-0575

SC INFORMATION LETTER #23-10
SUBJECT:

Interest Rate

DATE:

August 28, 2023

REFERENCE:

S.C. Code Ann. Section 12-54-25 (2014)
2022 S.C. Act No. 239, Provisos 41.2 and 117.82

AUTHORITY:

S.C. Code Ann. Section 12-4-320 (2014)
SC Revenue Procedure #09-3

SCOPE:

An Information Letter is a written statement issued to the public to announce general
information useful in complying with the laws administered by the Department. An
Information Letter has no precedential value.

The interest rate to be applied to underpayments and overpayments* of taxes is listed below. The rate is
compounded daily except simple interest applies to the underpayment of declaration of estimated tax.
Period

Rate*

Period

09/01/85 – 12/31/85
01/01/86 – 06/30/86
07/01/86 – 09/30/87
10/01/87 – 12/31/87
01/01/88 – 03/31/88
04/01/88 – 09/30/88
10/01/88 – 03/31/89
04/01/89 – 09/30/89
10/01/89 – 03/31/91
04/01/91 – 12/31/91
01/01/92 – 03/31/92
04/01/92 – 09/30/92
10/01/92 – 06/30/94
07/01/94 – 09/30/94
10/01/94 – 03/31/95
04/01/95 – 06/30/95
07/01/95 – 03/31/96
04/01/96 – 06/30/96
07/01/96 – 03/31/98

11%
10%
9%
10%
11%
10%
11%
12%
11%
10%
9%
8%
7%
8%
9%
10%
9%
8%
9%

04/01/98 – 12/31/98
01/01/99 – 03/31/99
04/01/99 – 03/31/00
04/01/00 – 03/31/01
04/01/01 – 06/30/01
07/01/01 – 12/31/01
01/01/02 – 12/31/02
01/01/03 – 09/30/03
10/01/03 – 03/31/04
04/01/04 – 06/30/04
07/01/04 – 09/30/04
10/01/04 – 03/31/05
04/01/05 – 09/30/05
10/01/05 – 06/30/06
07/01/06 – 12/31/07
01/01/08 – 03/31/08
04/01/08 – 06/30/08
07/01/08 – 09/30/08
10/01/08 – 12/31/08

Rate*
8%
7%
8%
9%
8%
7%
6%
5%
4%
5%
4%
5%
6%
7%
8%
7%
6%
5%
6%

Period
01/01/09 – 03/31/09
04/01/09 – 12/31/10
01/01/11 – 03/31/11
04/01/11 – 09/30/11
10/01/11 – 03/31/16
04/01/16 – 03/31/18
04/01/18 – 12/31/18
01/01/19 – 06/30/19
07/01/19 – 06/30/20
07/01/20 – 03/31/22
04/01/22 – 06/30/22
07/01/22 – 09/30/22
10/01/22 – 12/31/22
01/01/23 – 09/30/23
10/01/23 – 12/31/23

Rate*
5%
4%
3%
4%
3%
4%
5%
6%
5%
3%
4%
5%
6%
7%
8%

*Note reduction of interest rate on refunds. For fiscal year 2023-2024 (July 1, 2023 through June 30,
2024), Budget Provisos 41.2 and 117.82 direct the Department to reduce the rate of interest paid on eligible
refunds by a total of three percentage points from the above listed rates.