--- title: South Carolina Individual Income Tax for 2026 and Beyond description: "Hiring almost always feels like the right move. You need help, you set a salary, you make the offer. But the number on that offer letter rarely tells the whole story. By the time you add payroll taxes, benefits, software, equipment, and the hours your team spends onboarding someone new, a \"$70,000 hire\" can quietly turn into a $90,000 or $100,000 decision. Make that move at the wrong time, and the thing you hoped would create breathing room ends up adding pressure instead." image: https://scottandco.com/hubfs/John%20Price%20-%2012026%20Color%20cropped.jpg --- [Skip to the main content.](https://scottandco.com/blog/south-carolina-individual-income-tax-for-2026-and-beyond#main-content) - [Pay Online](https://secure.cpacharge.com/pages/scottandco/payments) - [Newsletter Sign Up](https://scottandco.com/newsletter-sign-up/) - [ShareFile](https://scottandco.sharefile.com/) [![Logo with Tagline in Color (No Website Address) - TGP](https://scottandco.com/hs-fs/hubfs/Logo%20with%20Tagline%20in%20Color%20(No%20Website%20Address)%20-%20TGP.jpg?width=3558&height=1110&name=Logo%20with%20Tagline%20in%20Color%20(No%20Website%20Address)%20-%20TGP.jpg "Logo with Tagline in Color (No Website Address) - TGP")](https://scottandco.com/) [![Logo with Tagline in Color (No Website Address) - TGP](https://scottandco.com/hs-fs/hubfs/Logo%20with%20Tagline%20in%20Color%20(No%20Website%20Address)%20-%20TGP.jpg?width=3558&height=1110&name=Logo%20with%20Tagline%20in%20Color%20(No%20Website%20Address)%20-%20TGP.jpg "Logo with Tagline in Color (No Website Address) - 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[Hospitality, Restaurants, and Retail](https://scottandco.com/industries/retail) - [Manufacturing and Distribution](https://scottandco.com/industries/manufacturing) - [Medical](https://scottandco.com/industries/medical) - [Nonprofit](https://scottandco.com/industries/non-profit) - [Professional and Business Services](https://scottandco.com/industries/professional-services) - [Real Estate](https://scottandco.com/industries/real-estate) - [Insights](https://scottandco.com/blog) - [Careers](https://scottandco.com/careers) 2 min read # South Carolina Individual Income Tax for 2026 and Beyond [Scott and Company](https://scottandco.com/blog/author/scott-company) Oct 5, 2026, 3:50:39 PM ![South Carolina Individual Income Tax for 2026 and Beyond](https://scottandco.com/hubfs/John%20Price%20-%2012026%20Color%20cropped.jpg) By: John Price, CPA - Managing Member, Tax & Advisory Services - Scott and Company LLC On March 30, 2026, Governor Henry McMaster signed into law a sweeping change to individual income tax rates and how the tax is computed. The new law creates two rates replacing the three rates the state had under the old law. Also, the new starting point for computing the tax will be federal adjusted gross income, not federal taxable income as we have all been accustomed to for many years. Thus, any itemized deductions or standard deduction taken on the federal return will be ignored on the SC return. A new SC deduction (SCIAD defined below) will replace the federal itemized deductions or standard deduction. The items of income and deduction that have always been an adjustment to taxable income remain unchanged; for example, taxable Social Security income for federal purposes will remain as non-taxed for SC purposes. **The following table shows you a comparison of the 2025 rules vs. the 2026 rules:** | **Topic** | **2025 Rules** | **2026 Rules** | | --- | --- | --- | | **Rate Structure** | Graduated brackets, generally 0%, 3%, and 6% for 2025. | Two-rate structure: 1.99% below $30,000 and 5.21% at $30,000 and above, minus $966. | | **Starting Point** | Federal taxable income. | Federal adjusted gross income. | | **Standard and Itemized Deductions** | South Carolina generally followed the federal standard or itemized deduction through the federal taxable income starting point. | South Carolina decouples from federal standard and itemized deductions. | | **South Carolina Deduction** | No SCIAD. | New SCIAD: $15,000 single or married filing separately, $22,500 head-of-household, and $30,000 married filing jointly or surviving spouse, subject to **income-based reductions.** |   The new law also allows for a gradual decrease in the top rate as overall projected revenue collections exceed a certain level. Touted as a tax decrease for South Carolina taxpayers, this law may make some people pay more in income tax. The South Carolina deduction will be completely phased out for single or married filing separately taxpayers whose federal adjusted gross income (AGI) exceeds $55,000, for head-of-household filers whose AGI exceeds $82,500, and for married filing jointly filers whose AGI exceeds $110,000. The following example shows how someone's SC tax could be higher in 2026 than it would be if the prior tax system were still in effect. **Under the old law - married filing jointly with no dependents:** Adjusted gross income $200,000 Itemized deductions $ 40,000 (no state income tax included) Taxable income $160,000 (no state adjustments) State income tax $ 8,958 ($160,000 \* 6% - $642) **Under the new law - married filing jointly with no dependents:** Adjusted gross income $200,000 SC deduction $ 0 Taxable income $200,000 ( no state adjustments) State income tax $ 9,454 ($200,000 \* 5.21% - $966)   This shows an almost $500 increase in state taxes. This may be an extreme example, but many families could face a larger state tax bill in April 2027 than they expect—even though the top rate fell by 0.79 percentage points. 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