55%
Will South Carolina's top individual income tax rate for tax year 2027 be below 5.21%?
Forecast 2026-10-21 · resolves by 2027-07-31
Starting residency · SC
Starting residency in South Carolina
South Carolina requires residents to hold a training license from the South Carolina Board of Medical Examiners: the Limited License. South Carolina has a graduated income tax (top rate 5.21% on income of $30,000 and above for 2026).
Training license
- Status
- Training license required
- Called
- Limited License (residency or fellowship training)
- Fee
- $130 for one year or $75 for six months; renewal at the same rates
- Renewal
- Annual; licenses run for the state fiscal year (July 1 to June 30) and must be renewed
Who applies: Resident, online; the program sends the contract or a recommendation letter, and the department chair or residency director completes a supervising physician form.
The board requires every physician in a South Carolina residency to hold a valid license before beginning to practice. The limited license is issued for one program, is not transferable, and moonlighting on it is forbidden. Practicing before approval brings a $25 late fee and a violation. Applicants complete a fingerprint background check. An older board rule lists a $150 fee; the 2025 fee regulation and the board's renewal form state $130.
Full license: After 1 year of approved residency for US/Canadian graduates (MD or DO). IMGs: 3 years, or 2.5 years in the current program with program certification, or 1 year plus ABMS/AOA certification or five years of licensure elsewhere. A full license matters if you plan to moonlight.
State income tax
Graduated income tax: top rate 5.21% on income of $30,000 and above (1.99% below $30,000) for 2026.
Source: dor.sc.gov
Match Day to your first loan payment
Assumes you enroll in RAP or IBR when the grace period ends, recertify once a year, and file each tax return by April. Your servicer's dates govern.
Mid-March
Match Day
You learn where you'll train. Your program sends its residency (GME) agreement and onboarding steps.
March–April
South Carolina training license
Apply for your South Carolina training license as soon as your program sends instructions. Applications often need school records and background checks that take weeks.
April–June
Credentialing and onboarding
Hospital credentialing, health screening, payroll and benefits forms, and a DEA registration if your program requires one.
Late June–July 1
Move and start
Intern orientation usually starts in the last week of June. When the first paycheck arrives depends on the hospital's payroll schedule, so budget for a few weeks of moving costs without one.
About 6 months after graduation
Federal loan grace period ends
Payments start 6 months after you leave school. Choose a plan before then, or request residency forbearance, during which interest accrues and months don't count toward PSLF.
First year of payments
Payments use last year's income
RAP and IBR use the adjusted gross income on your most recent tax return, which for most new residents is a student year. Payments rise after you recertify with a resident's income.
One board licenses MDs and DOs. H. 4216 (signed March 30, 2026) replaced the 0%/3%/6% brackets with two rates starting with tax year 2026; the Tax Foundation's February 2026 table shows the earlier 6% top rate.
Related
- Compare RAP, IBR and Tiered Standard on a resident's income
- South Carolina physician non-compete law, for when you sign your first attending contract
- All states
Outlook
Dated forecasts, scored when they resolve. All forecasts and the track record →
General information, checked on the date above. Board requirements and fees change; confirm with the South Carolina Board of Medical Examinersand your program before you apply.