South Carolina Income
Tax Rates & Rules
South Carolina has a progressive state income tax with rates up to 6%. Here's how the brackets break down.
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South Carolina Income Tax Brackets
2025 tax year rates, most recently confirmed by the state Department of Revenue.
Single / Individual
| Taxable Income | Rate |
|---|---|
| $0 – $3,560 | 0% |
| $3,560 – $17,830 | 3% |
| Over $17,830 | 6% |
Married Filing Jointly
| Taxable Income | Rate |
|---|---|
| $0 – $3,560 | 0% |
| $3,560 – $17,830 | 3% |
| Over $17,830 | 6% |
South Carolina applies the same bracket schedule to all filing statuses. South Carolina's standard deduction generally follows the federal amount.
Sources: SC Dept. of Revenue — Individual Income Tax. Last verified: August 14, 2026.
The new 2026 tax rates, SCIAD deduction, filing rules, residency and withholding.
South Carolina changed its individual income tax system for tax year 2026. Under Act 110, signed March 30, 2026, South Carolina now uses a 1.99 percent rate on the first $30,000 of South Carolina taxable income and a 5.21 percent rate on taxable income at $30,000 or more using the statutory formula.
The same law also changed the starting point for the state return and created the South Carolina Income Adjusted Deduction, or SCIAD. These changes are important because older South Carolina tax tables and explanations based on the former 0 percent, 3 percent and 6 percent structure are no longer the correct annual income tax rules for tax year 2026.
South Carolina Income Tax Rates for 2026
South Carolina uses two statutory calculations for tax year 2026.
| 2026 South Carolina Taxable Income | Tax Calculation |
|---|---|
| Less than $30,000 | 1.99 percent of South Carolina taxable income |
| $30,000 or more | 5.21 percent of South Carolina taxable income minus $966 |
The formula at $30,000 or more preserves continuity between the two ranges. A taxpayer should apply the formula to South Carolina taxable income after the state's adjustments and deductions have been determined.
Example: South Carolina Tax on $50,000 of Taxable Income
If South Carolina taxable income is $50,000, the 2026 formula for income at $30,000 or more applies.
($50,000 × 5.21 percent) - $966 = $1,639
This is the basic state tax before eligible credits. It is not 5.21 percent of gross salary because gross salary can differ from South Carolina taxable income.
What Is the South Carolina Income Adjusted Deduction?
The South Carolina Income Adjusted Deduction, or SCIAD, replaces reliance on the federal standard deduction for tax year 2026. The starting SCIAD amount depends on filing status.
| Filing Status | Maximum 2026 SCIAD |
|---|---|
| Single | $15,000 |
| Married Filing Separately | $15,000 |
| Head of Household | $22,500 |
| Married Filing Jointly | $30,000 |
| Surviving Spouse | $30,000 |
The SCIAD is subject to income-based reduction. The maximum deduction is not available at every income level.
How the SCIAD Phaseout Works
The SCIAD begins to phase down once federal adjusted gross income exceeds a filing-status threshold. The deduction becomes unavailable after the phaseout fraction reaches one.
| Filing Status | Phaseout Begins | SCIAD Eliminated At or Above |
|---|---|---|
| Single or Married Filing Separately | $40,000 federal AGI | $95,000 federal AGI |
| Head of Household | $60,000 federal AGI | $142,500 federal AGI |
| Married Filing Jointly or Surviving Spouse | $80,000 federal AGI | $190,000 federal AGI |
A taxpayer inside the phaseout range receives a reduced SCIAD. The statute uses a filing-status-specific fraction and requires the reduction amount to be rounded down to the next $10 increment when needed.
How Is South Carolina Taxable Income Calculated in 2026?
For 2026, South Carolina moved away from using federal taxable income as the direct starting point. Federal adjusted gross income becomes the starting point, then South Carolina adjustments and deductions are applied.
- Determine federal adjusted gross income.
- Apply South Carolina additions and subtractions required by state law.
- Determine South Carolina adjusted gross income.
- Calculate the SCIAD available for the filing status and income level.
- Apply other South Carolina deductions that are allowed.
- Determine South Carolina taxable income.
- Apply the 2026 1.99 percent or 5.21 percent statutory calculation.
- Subtract eligible South Carolina tax credits.
South Carolina No Longer Uses the Federal Standard Deduction for 2026
South Carolina decoupled from the federal standard and itemized deductions for tax year 2026. Instead, the state uses the new SCIAD under South Carolina law.
This change makes older content particularly risky. A 2025 return and a 2026 return do not use the same deduction framework, even if the taxpayer's federal filing status and income are similar.
Who Has to File a South Carolina Income Tax Return?
South Carolina filing requirements changed with the new 2026 deduction structure. The statute generally looks at South Carolina gross income compared with the applicable SCIAD plus qualifying retirement-income deduction amounts.
Because retirement-income deductions can affect the filing threshold, there is not one single gross-income filing threshold that applies to every taxpayer. Taxpayers should use the 2026 SC1040 instructions when the final return package is available.
South Carolina Residents and Domicile
A South Carolina resident is generally someone who intends to maintain South Carolina as a permanent home, treats the state as the center of financial, social and family life and intends to return to South Carolina when away.
A full-year resident generally reports income under South Carolina resident rules. When the same income is taxed by South Carolina and another state, a state tax credit can be available under the applicable rules.
How Part-Year Residents File in South Carolina
A person who becomes or stops being a South Carolina resident during the year can generally choose between two filing methods for that part-year year.
- File as a full-year South Carolina resident, report all federal taxable income and claim an allowable credit for income tax paid to another state.
- File using the nonresident method with Schedule NR, reporting income earned while a South Carolina resident plus South Carolina-source income.
The taxpayer can choose the method that is more beneficial when the part-year rules allow the election.
South Carolina Nonresident Income Tax
A nonresident generally files South Carolina Form SC1040 with Schedule NR when South Carolina-source income creates a filing requirement. Personal service income earned in South Carolina is generally included as South Carolina income.
Nonresident deductions are prorated. The 2026 SCIAD for a nonresident is also reduced in proportion to South Carolina adjusted gross income compared with federal adjusted gross income.
Does South Carolina Tax Remote Workers?
Remote-work taxation depends on residency and where the work is performed. South Carolina residents generally remain subject to South Carolina resident income tax rules even when they work for an employer located in another state.
A nonresident who performs services in South Carolina can have South Carolina-source wage income. Cross-border employees should evaluate both states' residency, sourcing and credit rules before assuming withholding in one state settles the full tax result.
South Carolina Earned Income Tax Credit for 2026
Act 110 also changed the South Carolina Earned Income Tax Credit for tax year 2026. A qualifying full-year resident can claim a nonrefundable credit equal to 125 percent of the federal EITC, but the South Carolina credit is capped at $200.
Because the credit is nonrefundable, it can reduce South Carolina tax liability but cannot create a refund by itself beyond tax otherwise due.
South Carolina Withholding vs. Annual Tax
Payroll withholding and annual income tax are related but separate calculations. South Carolina adjusted its withholding system for the new law, but a paycheck withholding amount is still only a prepayment toward the annual state tax.
Employees who want to estimate the paycheck effect can use the South Carolina paycheck calculator before comparing payroll withholding with expected annual liability.
Estimated South Carolina Income Tax Payments
South Carolina generally requires estimated tax payments when a taxpayer expects to owe $100 or more with the state return after withholding and credits. This commonly affects self-employed taxpayers plus people with investment or business income that is not covered by wage withholding.
The 2026 SC1040ES is the current form for computing and paying estimated South Carolina individual income tax during 2026.
When Is the 2026 South Carolina Income Tax Return Due?
The 2026 South Carolina individual income tax return is a tax-year 2026 return filed in 2027. For a calendar-year taxpayer, the normal filing and payment deadline is generally April 15, 2027 unless the state announces a different relief measure.
Income Tax Records and Payroll Documentation
An annual South Carolina income tax return determines the taxpayer's state liability for the year. A pay stub documents wages and withholding for one payroll period, so the two records should be consistent without being treated as interchangeable.
Once payroll values are verified, the South Carolina pay stub generator can organize genuine earnings, South Carolina withholding and other deductions into a clear payroll statement.
Businesses that need a broader document workflow can make pay stub records after confirming the underlying payroll information.
Frequently Asked Questions
What Is the South Carolina Income Tax Rate in 2026?
South Carolina uses 1.99 percent on taxable income below $30,000. For taxable income of $30,000 or more, the tax equals 5.21 percent of taxable income minus $966.
Who Has to File a South Carolina State Income Tax Return?
Filing depends on South Carolina gross income, filing status, the new SCIAD and qualifying retirement-income deductions. Residents, nonresidents and part-year residents can all have filing requirements.
How Is South Carolina Taxable Income Calculated?
For 2026, South Carolina starts with federal adjusted gross income then applies state adjustments, the SCIAD and other allowed deductions before the 2026 tax formula is applied.
Does South Carolina Tax Remote Workers?
South Carolina taxes residents under its resident rules and can tax South Carolina-source income of nonresidents. Remote-worker treatment depends on residency and where services are performed.
How Does South Carolina Treat Part-Year Residents?
A part-year resident can generally choose between a full-year resident method with a credit for tax paid to another state or the Schedule NR method that taxes resident-period income plus South Carolina-source income.