What South Carolina tax interest rate applied from January 1 through June 30, 2023, including eligible refund interest?

Plain-English summary

South Carolina's listed tax interest rate was 7% from January 1 through June 30, 2023. The rate applied to tax underpayments and overpayments under S.C. Code Ann. § 12-54-25. Interest generally compounded daily; underpayments of declarations of estimated tax used simple interest.

For fiscal year 2022-2023, Budget Provisos 41.2 and 117.82 reduced interest paid on eligible refunds by three percentage points. That reduced the listed 7% rate to 4% for eligible refunds during this period.

What this means for you

Use 7% when calculating ordinary South Carolina tax interest for dates in the first half of 2023, subject to daily compounding. Use 4% for eligible refund interest during the applicable fiscal-year period.

Common questions

Q: Was the listed rate 7%? A: Yes, for January 1-June 30, 2023.

Q: Was refund interest also 7%? A: Eligible refund interest was reduced to 4%.

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/IL23-2.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 #23-2
SUBJECT:

Interest Rate

DATE:

February 16, 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 – 06/30/23

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

*Note reduction of interest rate on refunds. For fiscal year 2022-2023 (July 1, 2022 through June 30,
2023), 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.