South Carolina taxes income under Act 110 of 2026 (H.4216): 1.99% on taxable income from $0 to $29,999, and 5.21% of taxable income minus $966 at $30,000 or more. For tax years after 2025, SC starts from federal adjusted gross income and applies its own SC Income Adjusted Deduction. SC provides a 44% exclusion on long-term capital gains and does not tax Social Security benefits. State sales tax rate is 6.00%.
State Income Tax
1.99% / 5.21%
Sales Tax
6.00% + local
South Carolina Income Tax Brackets 2026
Act 110 of 2026 (H.4216) sets one table for all filing statuses. The subtraction makes the result the same as taxing the first $30,000 at 1.99% and income above it at 5.21%. For tax years after 2025, SC starts from federal adjusted gross income (SC Information Letter #26-20).
SC taxable income (all statuses)
2026 tax
$0 – $29,999
1.99% × taxable income
$30,000 or more
(5.21% × taxable income) − $966
Employer withholding tables (SCDOR WH-1603) had not yet been revised for Act 110 as of September 2026 and still show the pre-Act 6.0% rate. Source: SC Information Letter #26-20.
OBBBA Conformity - South Carolina Does Not Adopt the Deductions (2026)
Act 110 of 2026 decoupled South Carolina from federal standard and itemized deductions for tax years beginning after 2025, and SC taxable income now begins with federal AGI. S.C. Code §12-6-50(21), added by Act 110, provides that IRC "Section 63(b) through (g)...specifically not allowed or adopted". SC Information Letter #26-20 lists the federal deductions no longer used as a result, including the senior deduction, the qualified tip deduction, and the overtime deduction. The SC Income Adjusted Deduction replaces them.
South Carolina's state sales tax rate is 6.00%. County local option sales taxes of up to 3% may apply. Groceries are taxable at the state rate, but South Carolina provides a $50 per-person income tax credit to offset the grocery tax burden.
Yes. For 2026, South Carolina taxes income from $0 to $29,999 at 1.99%, and income of $30,000 or more at 5.21% of taxable income minus $966 (Act 110 of 2026).
What is South Carolina's income tax rate for 2026?
Under Act 110 of 2026 (H.4216), taxable income from $0 to $29,999 is taxed at 1.99%. At $30,000 or more, the tax is 5.21% of taxable income minus $966. The same table applies to all filing statuses. For tax years after 2025, South Carolina starts from federal adjusted gross income and applies its own SC Income Adjusted Deduction.
Does South Carolina conform to the OBBBA tips and overtime deductions?
No, for 2026. SC Information Letter #26-20 lists the senior deduction, the qualified tip deduction, and the overtime deduction among the federal deductions South Carolina does not adopt for tax years beginning after 2025 (Act 110 of 2026); the SC Income Adjusted Deduction replaces them. For 2025, SC started from federal taxable income, so the deductions did reduce 2025 SC income.
What is South Carolina's sales tax rate?
South Carolina's state sales tax rate is 6.00%. Counties may levy additional local option sales taxes of up to 3% (Transportation, Capital Projects, or Education levies). Groceries are subject to the 6.00% state rate, but South Carolina provides a $50 per-person income tax credit to partially offset the grocery tax burden for income tax filers.
Is South Carolina's income tax rate changing?
Yes. Act 110 of 2026 (H.4216), approved March 30, 2026, replaced South Carolina's graduated schedule for tax years after 2025: 1.99% on taxable income from $0 to $29,999, and 5.21% of taxable income minus $966 at $30,000 or more. SC DOR says the bracket amounts are indexed annually.
We use cookies for analytics (Google Analytics 4) and advertising (Google AdSense). Your calculator inputs never leave your browser.Learn more
