Graphic Designer Taxes in South Carolina - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for a Graphic Designer in South Carolina

From designing logos for Charleston’s burgeoning businesses to crafting marketing materials for the state’s tourism industry, graphic designers in South Carolina play a vital role in the state’s economy. However, navigating the tax landscape as a self-employed creative requires careful attention.

As a graphic designer operating as an independent contractor in South Carolina, the federal government requires reporting all business income and expenses on Schedule C (Profit or Loss From Business) with Form 1040. Crucially, income exceeding $400 necessitates the payment of self-employment tax, covering both Social Security and Medicare contributions.

How South Carolina Handles Gig Worker Taxes

Residents of South Carolina are required to file a state income tax return, even if federal income tax isn’t owed. South Carolina employs a graduated income tax system, meaning the tax rate increases as income rises. For the 2025 tax year, the rates are expected to remain consistent with prior years, ranging from 0% to 6.4%. The primary form for self-employed individuals to report income and calculate South Carolina income tax is Form SC1040. It’s important to note that South Carolina also has a state use tax on certain purchases, particularly relevant if you’re acquiring equipment or software online from out-of-state vendors. Additionally, South Carolina offers various credits and deductions that may be applicable to self-employed individuals, such as the Earned Income Tax Credit, so thorough research is recommended. Estimated tax payments are generally required quarterly if you expect to owe $100 or more in South Carolina income tax. Failure to make timely estimated payments can result in penalties. Staying current with changes to South Carolina tax law is essential, and the South Carolina Department of Revenue provides valuable resources and updates.

For more information and resources, please visit the South Carolina Department of Revenue.

Key Tax Deductions for Home-Based Graphic Designers

• Home Office Deduction: To qualify for the home office deduction, the space must be used exclusively and regularly for your graphic design business. “Exclusive use” means that portion of your home is only used for work – no guest rooms doubling as offices. “Regular use” implies consistent and frequent use for business purposes. You can calculate the deduction using the simplified method ($5 per square foot, up to 300 square feet) or the actual expense method (calculating a percentage of your mortgage/rent, utilities, etc., based on the square footage used for business).
• Hardware & Software: The cost of essential hardware, such as computers, tablets, cameras, and printers, is generally deductible. Software expenses, including subscriptions to Adobe Creative Cloud, font licenses, and website hosting, are also deductible business expenses.
• Internet & Phone Bill: If you use your internet and phone for both personal and business purposes, you can deduct the percentage attributable to business use. Carefully track your usage to substantiate this claim.

Note on Mileage: As a home-based worker, mileage deductions are less common. However, you can claim mileage for occasional trips to meet with clients, attend industry events, or purchase supplies directly related to your business.

The 15.3% Self-Employment Tax Explained

The 15.3% self-employment tax comprises two components: 12.4% for Social Security and 2.9% for Medicare. This tax is essentially the equivalent of the employer and employee portions of these taxes when working for a traditional employer. You can deduct one-half of your self-employment tax from your gross income when calculating your adjusted gross income (AGI).