Timber tax credit Georgia: what woodland owners need to know

Last updated 2026-07-24

Does Georgia offer a timber tax credit?

Georgia does not have a state-level timber tax credit that directly reduces your income tax liability when you sell timber. Unlike some states with explicit forestry incentive credits, Georgia's tax benefits for woodland owners come from two other mechanisms: favorable federal capital gains treatment for timber sales, and the Conservation Use Valuation Assessment (CUVA) program that lowers annual property tax by assessing forestland at its current agricultural use value rather than full market value ^[1]. The CUVA program can reduce your annual property tax bill significantly, often by 40% to 80% depending on your county's development pressure, but it does not create a credit or deduction at the time you sell timber ^[2]. It's a property tax reduction, not an income tax credit. For income tax on timber sales, you'll deal exclusively with federal tax rules. The IRS allows qualifying timber sales to be taxed as long-term capital gains (maximum 20% federal rate, plus 3.8% net investment income tax if applicable) rather than ordinary income (up to 37% federal rate) if you meet specific holding period and structure requirements ^[2]. Georgia has a flat 5.75% state income tax with no special timber exclusion, so you'll owe that rate on your net timber gain regardless of how it's federally characterized ^[3]. The remainder of this article focuses on how to legally minimize federal tax on timber sales and correctly report them, since that's where the real savings live for Georgia woodland owners.

How are timber sales taxed at the federal level?

Timber sales receive preferential tax treatment if structured as a sale of a capital asset rather than ordinary income. The IRS distinguishes three scenarios, each with different tax consequences ^[2]. First, a lump-sum sale where you sell standing timber (trees still rooted) and the buyer cuts and removes them: if you've held the timber more than one year, the gain is long-term capital gain. You report the sale price minus your adjusted basis in the timber. This is the most common and tax-advantaged structure. Second, a pay-as-cut contract where you retain ownership until trees are cut and receive payment based on actual volume removed: you can still elect capital gains treatment under Internal Revenue Code Section 631(b) if the contract qualifies, provided you've held the timber more than one year and you make the election on Form T ^[2]. Third, if you cut the timber yourself and sell logs or products, the income is ordinary income from a business, not capital gain. You report it on Schedule C as self-employment income, subject to both income tax and self-employment tax (15.3% on net profit) ^[4]. The capital gains rates for 2025 are 0%, 15%, or 20% depending on your total taxable income. For married filing jointly, 0% applies to gains up to $94,050, 15% from $94,051 to $583,750, and 20% above that. High earners may also owe the 3.8% net investment income tax on timber gains. Georgia does not conform to federal capital gains treatment. Your timber gain is ordinary income on your Georgia return, taxed at the flat 5.75% state rate ^[3]. But the federal savings (37% ordinary vs. 20% capital gains, a 17-point spread) far outweigh the state non-conformity.

What is timber basis and why does it matter?

Your basis in timber is the amount you can subtract from sale proceeds to calculate your taxable gain. Higher basis means lower taxable gain and less tax owed. Basis is not a deduction but a recovery of your investment, so tracking it is critical ^[5]. If you purchased the property, your initial timber basis is the portion of the purchase price allocated to the merchantable timber at the time you bought it ^[5]. If the sale contract itemized timber value separately ("$200,000 land, $50,000 timber"), use that. If not, you'll need a professional timber appraisal or cruising report from the purchase date to allocate the price. Many owners skip this step and incorrectly assume zero basis, overpaying tax for decades. If you inherited the property, your basis is stepped up to the fair market value of the timber on the date of death (or alternate valuation date) ^[5]. The estate or executor should have obtained a timber appraisal; if not, a qualified forester can prepare a retrospective appraisal using growth models and historical stumpage data. If you received the property as a gift, you generally take the donor's basis (carryover basis), unless the fair market value at the time of the gift was lower, in which case special rules apply ^[5]. You increase basis by capitalizing reforestation costs (planting, site prep) and reduce basis as you sell timber ^[5]. The IRS requires you to track basis by timber account: separate accounting for timber of substantially different character (species, age class, location) ^[5]. For a 60-acre Georgia pine plantation and a 30-acre mixed hardwood stand, you'd maintain two accounts. When you sell pine sawtimber, you deplete only the pine account basis, calculated as (volume sold / total volume in account) × account basis. Most woodland owners don't do this. It's tedious, requires periodic cruising to update volumes, and feels like homework. But it's the law, and errors trigger ordinary income treatment or disallowed losses. The IRS Timber Tax Specialist can help you reconstruct basis if you've lost records ^[6]. For owners with $20,000+ in timber value or frequent sales, a CPA experienced in timber taxation is worth the fee. Our Current-Use Enrollment & Compliance Kit includes a simplified basis tracking worksheet to help you organize the data before engaging professional help.

How do I report a timber sale on my federal tax return?

You report a qualifying lump-sum timber sale using three forms: IRS Form T (Forest Activities Schedule), Schedule D (Capital Gains and Losses), and Form 4797 (Sales of Business Property) ^{[2] [4]}. Form T is the master timber activity statement. Part I reports your total timber depletion deduction (basis allocated to the volume sold). Part II details casualty losses (storm damage, fire). Part III covers reforestation expenses if you're claiming the amortization deduction. You attach Form T to your return every year you have any timber activity, even if you don't sell ^[2]. Schedule D is where you report the actual gain or loss. For a lump-sum sale held more than one year, enter the sale in Part II (long-term capital gains). Your sale price goes in column (d), your adjusted basis (from Form T, Part I) in column (e), and the difference is your gain in column (h). The capital gain flows to Form 1040 and is taxed at the preferential rates ^[4]. Form 4797 comes into play for Section 631(a) or (b) elections (cutting your own timber or pay-as-cut contracts). You report the deemed sale on Form 4797, Part I, and the resulting gain transfers to Schedule D as a long-term capital gain if you've held the timber more than one year ^{[2] [4]}. For pay-as-cut contracts, you must make a Section 631(b) election by filing Form T with your return for the year the contract is executed or the first year you receive payment, whichever is earlier ^[2]. The election is irrevocable for that contract. Each payment under the contract is a separate capital gain transaction. If you cut and sold the timber as a business (you own a sawmill, you hire loggers as employees, you sell firewood commercially), you report the gross receipts and expenses on Schedule C. The net profit is ordinary income subject to self-employment tax ^[4]. This is the least favorable tax structure. The most common error is failing to file Form T at all. The IRS may recharacterize your sale as ordinary income if you don't use the proper forms to claim capital gains treatment ^[2]. Second-most common: reporting the full sale price as a gain because you never established basis. Third: using Schedule C for a lump-sum sale you didn't physically cut.

What is the Section 631(a) election and should I use it?

Internal Revenue Code Section 631(a) allows you to elect to treat the cutting of timber as a sale, triggering a capital gain in the year you cut it, even if you don't sell the logs until later ^[2]. You recognize gain equal to the fair market value of the timber on the first day of your tax year (or the date you acquired it, if later) minus your adjusted basis. This election makes sense in narrow situations: you're cutting your own timber and milling it or selling logs in a future year, and you want to lock in capital gains treatment for the standing timber value before you add labor and milling profit (which will be ordinary income). It's also useful if you expect to be in a higher tax bracket next year when you sell the processed wood ^[2]. Most Georgia woodland owners should not make a Section 631(a) election. It accelerates tax liability (you pay tax before you receive cash from selling logs), requires an independent appraisal of fair market value on the deemed sale date, and creates additional complexity. The election is made annually by attaching a statement to your timely-filed return for the year you cut the timber ^[2]. If you're just selling standing timber to a logger, you don't need Section 631(a). Use the lump-sum sale method (sale of a capital asset, reported on Schedule D) instead.

How do I avoid or minimize capital gains tax on a timber sale?

You can't legally avoid paying tax on a timber gain, but you can minimize it through six strategies. First, establish and document your timber basis. As discussed earlier, many inherited and purchased properties have substantial unrealized basis that owners never claim. A $30,000 inherited timber basis turns a $50,000 sale into a $20,000 gain, saving $4,500 in federal tax at the 15% capital gains rate plus $1,150 in Georgia tax. Second, hold the timber more than one year to qualify for long-term capital gains rates. If you bought cutover land and the pine regenerated naturally, your holding period starts the day you acquired the land ^[5]. If you planted seedlings, your holding period for that timber cohort starts when you planted. Selling at 11 months costs you the 17-point federal rate spread. Third, time the sale to a low-income year if you have control over timing. If you're retiring and expect lower income in two years, wait. The 0% capital gains bracket (up to $94,050 for married filing jointly in 2025) is real and applies to timber. Fourth, structure pay-as-cut contracts carefully. Multi-year pay-as-cut contracts let you spread gain over several years, keeping you in lower brackets ^[2]. If a single $100,000 sale would push you into the 20% bracket, two $50,000 payments over two years might keep you at 15%. You'll need a Section 631(b) election, and the contract must qualify (buyer must have an economic interest in the timber, more than a cutting service) ^[2]. Fifth, capitalize rather than expense your forest management costs. Planting, site prep, and timber stand improvement costs can be added to basis if you elect to capitalize them instead of deducting them currently ^[5]. This defers the tax benefit to the sale year (when you may be in a higher bracket and the deduction is worth more) and converts ordinary deductions into capital gain reductions. Sixth, consider a 1031 like-kind exchange for the land (not the timber itself) if you're selling the entire property. Timber is personal property and doesn't qualify for Section 1031, but the underlying real estate does if you're selling to buy another investment property ^[7]. You'd still owe tax on the timber portion in the sale year, but you can defer tax on the land gain. This is complex and requires a qualified intermediary.

What is Georgia's Conservation Use Valuation Assessment program?

Georgia's Conservation Use Valuation Assessment (CUVA), enacted under O.C.G.A. § 48-5-7.4, allows qualifying agricultural and forest land to be assessed for property tax at its current use value rather than its highest-and-best-use market value ^{[1] [2]}. For forestland, that means your county assesses your 50 wooded acres at perhaps $400 per acre (its value as growing timber) instead of $2,000 per acre (its value as subdivide-able residential lots). To qualify, you must own at least 10 acres in a single tract in the county, have the land actively devoted to bona fide conservation use (including timber production), and apply to your county tax assessor ^[2]. There is no minimum income requirement, but the land must be "primarily and directly" used for forestry. A signed management plan prepared by a Georgia Registered Forester is required for forest use ^[2]. The Georgia Forestry Commission defines bona fide conservation use for forestry as "land producing or capable of producing forest products... and may include land in plantations, natural stands, land in silvicultural practices, or land subject to a conservation use covenant" ^[8]. Your land qualifies even if you haven't sold timber recently, as long as you're managing it for timber production (documented by the forester's plan). CUVA enrollment reduces your annual property tax bill, sometimes dramatically. A 50-acre tract in a high-growth county near Atlanta might drop from a $100,000 taxable assessment to a $20,000 assessment, saving $800 to $2,400 per year depending on millage rates ^[2]. In rural counties with less development pressure, savings are smaller but still meaningful. CUVA is not a tax credit and does not reduce income tax on timber sales. It's a separate benefit. You can be enrolled in CUVA and still owe full federal and state income tax on a timber sale. The CUVA covenant does create a potential penalty: if you withdraw land from CUVA or convert it to non-qualifying use, you owe a penalty equal to the tax savings for the current year plus the previous four years, plus interest ^[2]. Selling timber is not a disqualifying event, but subdividing the tract or building houses on it is.

What is a forest management plan and do I need one for CUVA?

A forest management plan is a written document describing your woodland's current condition (acreage, timber types, stocking, health) and prescribing management activities (thinning, prescribed fire, planting, wildlife habitat work) over a planning period, typically 10 years ^[8]. In Georgia, CUVA enrollment for forest land requires a plan prepared and signed by a Georgia Registered Forester ^[2]. The plan does not have to be elaborate. A basic CUVA-qualifying plan includes a property map, a description of each forest stand (species, age, size class, acres), a statement of management objectives ("manage for timber production and wildlife"), and a list of recommended practices with approximate timing ^[8]. It should reflect real forestry, not a paper exercise. You'll pay a forester $300 to $800 for a plan on a 10- to 50-acre property, more for larger or complex tracts ^[8]. Many consulting foresters offer a flat-fee CUVA plan service. The Georgia Forestry Commission maintains a directory of registered foresters ^[8]. The plan must be updated whenever the property changes hands or when the county assessor requests it, typically every 10 years ^[2]. You don't have to implement every practice in the plan to stay enrolled, but you must maintain the land in bona fide forestry use. If the assessor visits and finds you've clearcut everything and planted a subdivision, your CUVA enrollment ends and the penalty applies. A management plan is not required for federal timber tax treatment. The IRS does not care if you have a written plan, only that you meet the holding period and basis requirements ^[2]. But practically, a good plan helps you make better harvest decisions, increases the value of your timber over time, and documents that you're holding the timber as an investment (capital asset) rather than as inventory (ordinary income property).

Do I owe capital gains tax on inherited timber I never planted?

Yes, but your basis is stepped up to the fair market value on the date of death, so your taxable gain may be small or zero ^[5]. When you inherit timberland, your basis in the timber is its appraised value on the decedent's date of death (or six months later if the executor elected the alternate valuation date) ^[5]. If the estate had the timber appraised at $60,000 and you sell it two years later for $65,000, your taxable gain is $5,000, not $65,000. If you sell for $60,000 or less, you have no gain (or possibly a capital loss). The key is documentation. The estate executor or administrator should have obtained a qualified timber appraisal to establish the date-of-death value for estate tax purposes (if the estate was large enough to owe federal estate tax) or at least for the heirs' income tax basis. If no appraisal exists, you can hire a forester to prepare a retrospective appraisal using stumpage price indices, growth models, and any available photos or records ^[5]. This is harder than a contemporaneous appraisal and may not hold up as well under audit, but it's better than claiming zero basis. Your holding period for inherited timber is automatically long-term, regardless of how long you actually hold it ^[5]. You can sell the day after you inherit and still get capital gains treatment (assuming you sell standing timber to a buyer, not cut it yourself). Many heirs sell timber within a year or two of inheriting a property to settle estate expenses or divide proceeds among siblings. The step-up in basis makes this much less costly than selling timber you planted 20 years ago with a low original basis.

What records do I need to keep for a timber sale?

The IRS requires you to maintain records supporting your timber basis, depletion calculations, and sale transactions for as long as they affect the computation of any tax year's liability ^[5]. Practically, that means keep everything forever or until you sell the property and three years pass after you file the return reporting the final sale. For basis, keep: the closing statement and deed from your purchase (showing purchase price and any itemized timber value), any timber appraisals or cruising reports at purchase or inheritance, receipts for reforestation and management costs you capitalized, and annual cruising updates used to calculate depletion ^[5]. For each sale, keep: the timber sale contract or deed (showing sale price, species, volume, and whether standing or cut), any volume settlement sheets or scale tickets (log truck weights, delivered volumes), payment records, and your Form T and Schedule D for the year of sale ^{[2] [5]}. For CUVA enrollment, keep: your application, the forester's management plan, any correspondence with the county tax assessor, and annual property tax bills showing the current-use assessment ^[2]. If you're audited, the IRS will ask for proof of basis first. Inherited property without an appraisal is the most common audit issue. Purchased property where the owner allocated $0 to timber ("I bought land, not trees") is second. If you can't prove basis, the IRS will assign $0 and tax the entire proceeds ^[5]. Digital scans stored in the cloud are fine. Paper in a fireproof safe is fine. A shoebox under the bed is not fine.

Can I deduct forest management expenses in the year I pay them?

It depends on what you're trying to accomplish and which expenses you're talking about ^{[5] [9]}. Timber Stand Improvement (TSI) expenses (thinning, prescribed burning, herbicide release, fertilization of established stands) that maintain or improve the value of your existing timber can generally be deducted currently as management expenses if you're holding the timber as an investment ^[9]. You report these on Schedule E (if you're treating the timberland as investment property) or capitalize them and add to timber basis if you prefer ^[5]. Reforestation expenses (site prep, seedlings, planting labor, first-year release) are subject to special rules under IRC Section 194. You can deduct up to $10,000 per year currently and amortize the rest over 84 months (7 years) ^[9]. Alternatively, you can elect to capitalize all reforestation costs and add them to the basis of the new timber ^[5]. The $10,000 immediate deduction is usually better for small owners unless you're in the 0% tax bracket. Management plan preparation fees, property tax (if not enrolled in CUVA), liability insurance, and consulting forester fees are deductible as investment expenses if you itemize ^[9]. Under current tax law (post-2017 Tax Cuts and Jobs Act), miscellaneous itemized deductions subject to the 2%-of-AGI floor are suspended through 2025, so you can't deduct these on Schedule A ^[9]. You can, however, add them to basis if you elect to capitalize management costs, recovering them when you sell timber ^[5]. If you're operating a timber business (you regularly buy and sell timber, you employ loggers, you file Schedule C), your management expenses are ordinary business deductions on Schedule C, not subject to the itemized-deduction limitations ^[4]. But this classification subjects your net income to self-employment tax, so it's rarely advantageous for someone who owns one tract and sells timber occasionally. Most woodland owners holding timber as an investment should capitalize reforestation costs (take the $10,000 Section 194 deduction each year you plant, then amortize the rest) and capitalize or deduct TSI costs depending on their current-year tax situation.

How does Georgia's flat income tax affect my timber sale?

Georgia switched to a 5.75% flat income tax rate effective January 1, 2024, replacing its previous graduated brackets ^[3]. This rate applies to all income, including capital gains, with no preferential rate for long-term gains ^[3]. If you sold timber in 2024 or later and qualified for federal long-term capital gains treatment (0%, 15%, or 20%), you'll still owe Georgia income tax at 5.75% on the net gain. Your total effective tax rate on a $40,000 timber gain, assuming you're in the federal 15% bracket, is 15% + 5.75% = 20.75% federal-and-state combined ^[3]. Georgia allows a standard deduction ($12,000 single, $24,000 married filing jointly for 2024) but no personal exemptions ^[3]. Your timber gain is added to your other income (wages, interest, retirement distributions) to calculate taxable income, then taxed at 5.75%. There is no Georgia timber exclusion or credit. Bills proposing a forest landowner tax credit have been introduced in the Georgia legislature in the past but have not passed . The only state-level financial relief for Georgia woodland owners remains the CUVA property tax reduction, not an income tax benefit. Some neighboring states are worse: South Carolina taxes capital gains as ordinary income at up to 7% . North Carolina has a 4.5% flat rate, also applied to capital gains . Tennessee has no state income tax on wages or capital gains, but very few Tennessee residents are considering moving to Georgia for the timber tax advantages.

Frequently asked questions

What is forest management bureau?

There is no agency called the "Forest Management Bureau" in Georgia. Forestry matters are handled by the Georgia Forestry Commission, a state agency that provides wildfire protection, forest management assistance, and administers forestry programs including CUVA enrollment support. For federal land, the USDA Forest Service manages national forests in Georgia.

What is forest management?

Forest management is the practice of planning and implementing activities (planting, thinning, prescribed fire, harvest) to achieve specific landowner objectives, typically timber production, wildlife habitat, recreation, or water quality. In Georgia, a written forest management plan prepared by a registered forester is required for CUVA enrollment and helps document that you're holding timber as a capital investment for tax purposes.

How to report sale of timber on tax return?

Report a qualifying lump-sum timber sale using IRS Form T (Timber) to calculate your depletion deduction, then report the gain on Schedule D as a long-term capital gain if you held the timber more than one year. Attach all three forms to your Form 1040. Pay-as-cut contracts require a Section 631(b) election on Form T and are reported on Form 4797 and Schedule D.

How do I avoid capital gains tax on timber sale?

You can't legally avoid tax on a timber gain, but you can minimize it by documenting your timber basis (purchase allocation or stepped-up inherited value), holding timber more than one year for long-term capital gains rates (0-20% vs. up to 37% ordinary), timing sales to low-income years, spreading gains with pay-as-cut contracts, and capitalizing management costs to increase basis.

Do I have to pay taxes on timber sold?

Yes. Timber sales generate taxable income under federal and Georgia law. The gain (sale price minus your adjusted basis) is subject to federal income tax (0-20% if long-term capital gain, up to 37% if ordinary income) and Georgia income tax (5.75% flat rate). Properly structured sales with documented basis minimize tax but do not eliminate it.

Do you have to pay taxes on timber sales?

Yes. All timber sales are taxable. The question is the rate: long-term capital gains (0-20% federal, plus 5.75% Georgia) if you sell standing timber held more than one year, or ordinary income (up to 37% federal plus 15.3% self-employment tax, plus 5.75% Georgia) if you cut and sell it yourself as a business. The rate difference is substantial.

Do you pay taxes on timber sales?

Yes. Timber sales are taxable under federal and Georgia income tax. The sale price minus your adjusted basis in the timber is your gain, taxed as long-term capital gain (preferential federal rates) if you meet IRS requirements or as ordinary income if you don't. Georgia taxes all gains at 5.75% regardless of federal treatment.

How are timber sales taxed?

Timber sales are taxed as long-term capital gains (0-20% federal) if you sell standing timber held more than one year and report it correctly on Form T and Schedule D. If you cut the timber yourself and sell logs, it's ordinary income on Schedule C, subject to income and self-employment tax. Georgia adds 5.75% state tax on all gains.

How do I report timber sales on my taxes?

Use IRS Form T to calculate timber depletion (basis allocated to volume sold), then report the gain on Schedule D if it's a lump-sum sale or Form 4797 for Section 631 elections. File these with your Form 1040. Georgia requires no special forms; report the gain on your Georgia 500 as part of your federal AGI.

How to report timber sales on tax return?

File Form T (Timber) with your federal return every year you have timber activity. For a lump-sum sale of standing timber held over one year, report the gain on Schedule D, Part II (long-term capital gains). For pay-as-cut contracts, make a Section 631(b) election on Form T and report each payment on Form 4797 and Schedule D.

Does Georgia CUVA enrollment affect my timber sale taxes?

No. CUVA reduces your annual property tax but does not affect income tax on timber sales. You'll owe full federal (0-20% capital gains or up to 37% ordinary) and Georgia (5.75%) income tax on your timber gain whether or not you're enrolled in CUVA. CUVA and income tax are separate systems.

What if I sold timber but never established a basis?

You'll owe tax on the entire sale price unless you can reconstruct basis. If you purchased the property, obtain a retroactive timber appraisal allocating purchase price to timber. If you inherited it, document the date-of-death value with an appraisal or estate records. If you have no records and can't reconstruct, the IRS will assign zero basis and tax 100% of the proceeds.

Can I deduct losses if my timber was destroyed in a storm?

Yes, if the loss was from a sudden, unexpected event (hurricane, tornado, ice storm). Calculate your loss as the decrease in fair market value of the timber (before vs. after) or your adjusted basis in the destroyed timber, whichever is less. Report it on IRS Form T, Part II, and Form 4684 (Casualties and Thefts). Salvage sales of downed timber are still taxable.

Do I need a forester to sell timber or just for CUVA?

You need a Georgia Registered Forester to prepare the management plan required for CUVA enrollment. You don't legally need a forester to sell timber, but hiring one to mark the sale, cruise the volume, and negotiate the contract typically increases your revenue by more than the fee and helps document your basis for tax purposes. Most foresters charge 6-10% of sale value as commission.

Sources

1. Georgia Code § 48-5-7.4 - Conservation Use Property: Georgia Conservation Use Valuation Assessment (CUVA) allows qualifying forest and agricultural land to be assessed at current use value rather than market value
2. IRS Publication 544 - Sales and Other Dispositions of Assets: Lump-sum sales of standing timber qualify as capital assets if held over one year; Section 631(b) election allows pay-as-cut contracts to receive capital gains treatment; Form T required for all timber elections
3. IRS - 2025 Capital Gains Tax Rates: Long-term capital gains rates for 2025 are 0% (income up to $94,050 MFJ), 15% ($94,051-$583,750), and 20% (above $583,750); high earners may owe additional 3.8% net investment income tax
4. IRS Publication 551 - Basis of Assets: Timber basis is portion of purchase price allocated to timber, or stepped-up fair market value at death for inherited property; basis is reduced by depletion as timber is sold; separate accounting required for timber of substantially different character
5. IRS - Like-Kind Exchanges Under IRC Section 1031: Real estate (land) qualifies for Section 1031 like-kind exchange; timber is personal property and does not qualify for 1031 deferral
6. Georgia Forestry Commission - Forest Management Plans: Forest management plans required for CUVA must be prepared by Georgia Registered Forester; directory available through GFC
7. IRS Publication 225 - Farmer's Tax Guide (applies to timber): Reforestation expenses qualify for $10,000 current deduction and 84-month amortization under Section 194; timber stand improvement expenses may be currently deducted or capitalized
8. Georgia General Assembly - HB 192 (2023): Forest landowner tax credit bills have been introduced in Georgia legislature but have not been enacted (example: HB 192 in 2023 session, not passed)
9. Tax Foundation - State Individual Income Tax Rates and Brackets for 2024: South Carolina top rate 7%, North Carolina flat 4.5%, Tennessee no income tax; all neighboring states apply their rates to capital gains