South Carolina paycheck taxes at a glance
| Income tax on wages | Progressive, 1.99% – 5.21% |
|---|---|
| Minimum wage (2026) | $7.25 an hour (South Carolina has no state minimum wage law; the federal minimum applies to employers covered by the Fair Labor Standards Act) |
2026 South Carolina income tax brackets (single filers)
| Taxable income | Rate |
|---|---|
| $0 – $29,999 | 1.99% |
| $30,000 and up | 5.21% |
Example: a $73,700 salary in South Carolina
The median household income in South Carolina is about $73,672 (2025 data). Here's what one earner with that salary, paid every two weeks, filing single with no pre-tax deductions, would see on each paycheck in 2026:
| Gross pay | $2,834.62 |
|---|---|
| Federal income tax | −$284.00 |
| Social Security | −$175.75 |
| Medicare | −$41.10 |
| South Carolina income tax | −$98.89 |
| Take-home pay | $2,234.88 |
That's $58,107 a year in take-home pay, or 21.2% of gross pay going to taxes.
Take-home pay by salary in South Carolina
Single filer, paid biweekly, standard W-4, no pre-tax deductions:
| Salary | Per paycheck | Per year | State taxes | Total tax rate |
|---|---|---|---|---|
| $40,000 | $1,300.87 | $33,823 | $498 | 15.4% |
| $60,000 | $1,874.14 | $48,728 | $1,662 | 18.8% |
| $80,000 | $2,389.29 | $62,122 | $2,988 | 22.3% |
| $100,000 | $2,882.15 | $74,936 | $4,244 | 25.1% |
| $150,000 | $4,113.15 | $106,942 | $6,849 | 28.7% |
| $200,000 | $5,364.35 | $139,473 | $9,454 | 30.3% |
What changed for 2026
- Act 110 of 2026 replaced three brackets with two. Taxable income up to $29,999 is taxed at 1.99%; at $30,000 and above, the tax is 5.21% of taxable income minus $966. The changes apply to tax years beginning after December 31, 2025.
- South Carolina no longer uses the federal standard or itemized deductions. Taxable income now starts from federal AGI, less the new SC Income Adjusted Deduction of up to $15,000 (single), $22,500 (head of household) or $30,000 (married filing jointly).
- The state earned income tax credit, 125% of the federal credit, is now capped at $200 a year.
- Starting with 2027, the 5.21% rate will fall further in any year that income tax revenue is projected to grow at least 5%, until it reaches 1.99%.
South Carolina pay rules worth knowing
- South Carolina doesn't set a required pay frequency. Employers must tell you in writing when you're hired what your wages and normal hours are and when and where you'll be paid, and give seven days' written notice before changing those terms (raises excepted).
- When you leave a job, your employer must pay all wages due within 48 hours, or on the next regular payday as long as that's no more than 30 days away. If wages are withheld in violation of the law, you can sue for three times the unpaid amount plus attorney's fees.
South Carolina’s 2026 tax overhaul
The governor signed Act 110 (H.4216) on March 30, 2026, and it applies to the whole 2026 tax year. It changed three things that affect a paycheck:
- Lower rates, two brackets. The first $30,000 of taxable income is effectively taxed at 1.99% and everything above at 5.21%. The bracket amounts will be indexed to inflation in future years.
- A new starting point. South Carolina used to begin with federal taxable income, after the federal standard or itemized deduction. It now begins with federal AGI.
- A deduction that phases out. In place of the federal deduction, you get the SC Income Adjusted Deduction (SCIAD). It’s worth $15,000 for single filers with AGI up to $40,000 and shrinks steadily to zero at $95,000. Joint filers get $30,000, phasing out between $80,000 and $190,000.
The combination means lower-income workers get a large break, while single filers with AGI of $95,000 or more lose the deduction entirely and pay 5.21% on every dollar above $30,000. The calculator includes all of this for 2026.
Why your withholding may not match
This calculator shows the tax South Carolina will actually charge for 2026 under the new law. Your paycheck may show something different. Employers use the Department of Revenue’s withholding formula, and the 2026 version still posted on its site was published in November 2025, before Act 110 passed. It’s based on the old brackets, with the top 6% rate starting at $18,230 of taxable wages.
When we ran that published formula against the new law’s tax for single filers claiming zero to two allowances, the old formula withheld more than the new tax at every salary we tested, from $20,000 to $250,000. If that holds for you, the extra comes back as a refund when you file your 2026 return. You can reduce the over-withholding by updating your SC W-4, but leave a margin if your situation is more complicated (two jobs, large itemized deductions you can no longer use, or income near a phase-out point).
Future cuts
Act 110 sets up more reductions. Starting with 2027, if the Board of Economic Advisors projects individual income tax revenue to grow at least 5%, the 5.21% rate drops by enough to cut revenue by the greater of $200 million or 25% of the recurring surplus (or by less, if projected revenue growth is smaller than that). That repeats until the top rate reaches 1.99%. After that the single rate can keep falling toward zero under the same test.
No state minimum wage
South Carolina has no minimum wage law of its own, so most workers are covered by the federal $7.25. Use the salary calculator to turn an hourly rate into annual pay, and the W-4 calculator to check your federal withholding while you’re updating your forms.
Estimates only. Your employer’s payroll system, your W-4 and SC W-4 determine your actual paycheck.
How we calculate: New 2026 rates (1.99% / 5.21%) and income-adjusted deduction under Act 110, retroactive to Jan. 1, 2026; the dependent exemption uses the 2025 amount ($4,930). Employer withholding tables may not yet reflect the new law.
Sources
- SC Department of Revenue: Information Letter #26-20, Individual Income Tax Reform
- SC Department of Revenue: Withholding
- SC Department of Revenue: 2026 Withholding Tax Formula (WH-1603F)
- South Carolina Code Title 41, Chapter 10: Payment of Wages
- U.S. Department of Labor: State payday requirements
- U.S. Department of Labor: State minimum wage laws
- Census Bureau: Household Income in States and Metropolitan Areas, 2025
- scstatehouse.gov
- dor.sc.gov
- IRS Publication 15-T (federal withholding)
Frequently asked questions
Will my South Carolina withholding change because of Act 110?
The law tells the Department of Revenue to adjust withholding tables, but sets no deadline. As of November 2026 the 2026 formula posted on its website (WH-1603F, revised November 4, 2025) still uses the old 0%, 3% and 6% brackets. Until new tables arrive, compare the state tax on your pay stub with this calculator's estimate and expect any difference to settle when you file.
Does South Carolina follow the new federal deductions for tips and overtime?
No. Act 110 decoupled South Carolina from the deductions taken after federal AGI, including the federal tip and overtime deductions, the car loan interest deduction, the senior deduction and the qualified business income deduction. Those still lower your federal tax, but not your South Carolina tax.
How much is the SC Income Adjusted Deduction at my income?
For single filers it's $15,000 if federal AGI is $40,000 or less, then shrinks in proportion to income until it's gone at $95,000. For married couples filing jointly it's $30,000 up to $80,000 of AGI and is gone at $190,000; for heads of household, $22,500 up to $60,000 and gone at $142,500. The Department of Revenue says it will offer an online calculator.
Do I have to file a South Carolina return in 2027?
Filing thresholds now match the new deduction. If you're under 65, you must file if your South Carolina gross income is over $15,000 as a single filer, $22,500 as head of household, or $30,000 for a married couple filing jointly. Higher thresholds apply at 65 and older.
Facts verified November 6, 2026. Estimates only; your employer's payroll system and your W-4 determine your actual withholding.