COLUMBIA, S.C. – Governor Henry McMaster was joined today by members of the South Carolina General Assembly and other state leaders for a ceremonial bill signing of H. 4216, the Income Tax bill. The new legislation simplifies South Carolina’s individual income tax structure and establishes a framework to continue reducing income taxes over time.
“Cutting the personal income tax in South Carolina has long been a top priority, and today we are continuing to deliver,” said Governor Henry McMaster. “This is another major step forward that builds on years of hard work and keeps more money in the pockets of hardworking South Carolinians. It puts us on a clear path to continue reducing and ultimately eliminating the personal income tax.”
Beginning in tax year 2026, H.4216 replaces South Carolina’s current three-bracket individual income tax system with a simplified two-rate structure. Under the new law, taxpayers will be subject to a 1.99% rate on taxable income up to $30,000 and a 5.21% rate on taxable income above $30,000, down from 6.0%. These changes will save South Carolina taxpayers an additional $325 million.
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