SC Implements New 2026 Tax Structure

SC enacted major changes to its individual tax structure for 2026.

For tax years beginning after 2025, South Carolina moves to a simpler two-bracket structure:

• 1.99% applies to taxable income from $0 to less than $30,000.
• 5.21% applies to taxable income of $30,000 or more, with a $966 subtraction.

In plain terms, the 2026 structure generally reduces the applicable rates and replaces the prior multi-rate framework with two brackets.

SC also introduced the South Carolina Income Adjusted Deduction (SCIAD). Rather than adopting the federal standard deduction, SC has now established its own deduction amounts as follows:

• Married filing Jointly $30,000
• Single $15,000
• Head of Household $22,500

These amounts will phase out for higher income taxpayers, and for nonresidents, the SCIAD will be prorated by the ratio of SC gross income to federal gross income.