What South Carolina tax interest rate applied through September 30, 2023, including eligible refund interest for fiscal year 2023-2024?

Plain-English summary

South Carolina's listed tax interest rate was 7% from January 1 through September 30, 2023. Interest generally compounded daily, while underpayments of declarations of estimated tax used simple interest.

For fiscal year 2023-2024, the Department reduced interest paid on eligible refunds by three percentage points. When the listed rate was 7%, the eligible refund rate was 4%.

What this means for you

Use the 7% listed rate for ordinary underpayment or overpayment interest through September 2023, subject to the refund reduction and compounding rules.

Common questions

Q: What was the listed rate through September 2023? A: 7%.

Q: What was the eligible refund rate in fiscal year 2023-2024? A: 4% while the listed rate was 7%.

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/IL23-6.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 #23-6
SUBJECT:

Interest Rate

DATE:

June 22, 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

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 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.