How South Carolina Income Tax Works in 2026
South Carolina rebuilt its income tax for 2026. Three things changed for a salaried worker.
- Two brackets. Taxable income under $30,000 pays 1.99%. At $30,000 or more, the whole amount is taxed at 5.21% and then $966 is subtracted.
- A new starting point. The state no longer begins with federal taxable income. It starts from federal adjusted gross income, so the federal standard deduction does not carry over.
- Its own deduction. The South Carolina Income Adjusted Deduction (SCIAD) replaces the federal one and shrinks as income rises.
SC tax = 5.21% × (AGI − SCIAD) − $966, or 1.99% × (AGI − SCIAD) below $30,000
The subtraction of $966 makes the two formulas meet exactly at $30,000, so there is no jump in tax at the bracket line.
The SC Income Adjusted Deduction
The SCIAD is a flat amount for lower incomes that fades to zero over a fixed income range.
| Filing status | Full deduction | Starts shrinking above | Gone at |
|---|---|---|---|
| Single | $15,000 | $40,000 | $95,000 |
| Married filing jointly | $30,000 | $80,000 | $190,000 |
Inside the range, the deduction drops by the share of the range you have passed. The reduction is rounded down to a multiple of $10. At $65,000 a single filer is $25,000 into a $55,000 range, so the deduction falls from $15,000 to $8,190.
Because the deduction fades, a raise in that band costs more state tax than the 5.21% rate alone suggests.
Worked Example: $65,000 Single in South Carolina
- Federal adjusted gross income: $65,000 (salary only, no pre tax deductions).
- SCIAD: $8,190, so South Carolina taxable income is $56,810.
- State tax: 5.21% × $56,810 − $966 = $1,993.80.
- Federal tax, Social Security and Medicare follow the 2026 federal rules.
| Line | Per year | Per month |
|---|---|---|
| Gross pay | $65,000 | $5,416.67 |
| Federal income tax | −$5,620 | −$468.33 |
| Social Security | −$4,030 | −$335.83 |
| Medicare | −$942.50 | −$78.54 |
| South Carolina income tax | −$1,993.80 | −$166.15 |
| Net pay | $52,413.70 | $4,367.81 |
All deductions together take 19.4% of gross pay.
South Carolina Take Home Pay at Six Salaries
Single filer, 2026, no benefits deducted. Each row comes from the calculator above.
| Salary | SC income tax | All deductions | Net per year | Net per month |
|---|---|---|---|---|
| $30,000 | $298.50 | $4,013.50 | $25,986.50 | $2,165.54 |
| $45,000 | $667.86 | $7,330.36 | $37,669.64 | $3,139.14 |
| $65,000 | $1,993.80 | $12,586.30 | $52,413.70 | $4,367.81 |
| $85,000 | $3,320.27 | $19,692.77 | $65,307.23 | $5,442.27 |
| $110,000 | $4,765 | $28,550 | $81,450 | $6,787.50 |
| $150,000 | $6,849 | $43,058 | $106,942 | $8,911.83 |
Above $95,000 the SCIAD is gone, so every extra dollar is taxed at the full 5.21%.
Married Filing Jointly in South Carolina
A joint return gets a $30,000 SCIAD that holds until $80,000 of AGI. On $65,000 that leaves $35,000 taxable and $857.50 of state tax, against $1,993.80 for a single filer on the same pay.
A couple on $120,000 keeps $96,489.11 a year after $4,290.89 of South Carolina tax. Two incomes count together, so the deduction fades on the combined AGI.
South Carolina Paycheck by Pay Schedule
The same $65,000 single salary, split by how often you are paid:
| Pay schedule | Gross per paycheck | Net per paycheck |
|---|---|---|
| Weekly (52) | $1,250 | $1,007.96 |
| Every two weeks (26) | $2,500 | $2,015.91 |
| Twice a month (24) | $2,708.33 | $2,183.90 |
| Monthly (12) | $5,416.67 | $4,367.81 |
Act 110 directs SCDOR to adjust the withholding tables for the new rates. Withholding is only an estimate, so the return settles the exact amount.
What South Carolina Taxes and What It Leaves Out
- Taxed: wages, salary, bonuses and commission, all part of federal AGI.
- Lowers the state figure: traditional 401(k) and other pre tax deductions, because they reduce federal AGI before South Carolina starts.
- Not carried over: the federal deductions for tips, overtime, car loan interest and the senior deduction. South Carolina decoupled from them for 2026.
- No local wage tax: cities and counties in South Carolina do not tax pay.
- No state disability or paid leave premium comes out of the paycheck.
Assumptions and Limits
- Your salary is your only income, so it equals federal AGI.
- No dependents and no South Carolina credits, such as the earned income credit, which Act 110 capped at $200.
- Single or married filing jointly only.
- Annual tax, not payroll withholding.
Sources: South Carolina Department of Revenue, SC Information Letter #26-20 (Act 110 of 2026); IRS Rev. Proc. 2025-32; Social Security Administration. Rates for 2026.
Frequently Asked Questions
What is the South Carolina income tax rate in 2026?
Two rates: 1.99% on taxable income below $30,000, and 5.21% less $966 at $30,000 or more, under Act 110 of 2026.
Does South Carolina still use the federal standard deduction?
No. From 2026 it starts from federal AGI and allows its own SC Income Adjusted Deduction of up to $15,000 single or $30,000 joint.
How much is take home pay on $65,000 in South Carolina?
About $52,413.70 a year for a single filer, or $4,367.81 a month, in 2026.
Is the 2026 rate cut retroactive?
Yes. The Governor signed Act 110 on March 30, 2026, and it applies to tax years beginning after December 31, 2025.
Are tips and overtime tax free in South Carolina?
No. The federal tip and overtime deductions do not carry to the South Carolina return for 2026.
Can the top rate fall again?
Yes. From 2027 the 5.21% rate drops each year that revenue growth reaches the trigger set in the law, until it reaches 1.99%.