South Carolina Paycheck Calculator (2026 Take-Home Pay)

Under Act 110 of 2026 (codified in S.C. Code Ann. § 12-6-510 and explained in SC Information Letter #26-20), South Carolina restructured its individual income tax into a simplified two-bracket system for tax years beginning after December 31, 2025. Taxable income from $0 to $29,999 is taxed at a low rate of 1.99%. Taxable income of $30,000 or more is taxed at a top marginal rate of 5.21% (computed as: 5.21% × taxable income minus $966). This replaces the prior 3-tier structure which had a top marginal rate of 6.00% in 2025.

Established by Act 110 of 2026, the South Carolina Income Adjusted Deduction (SCIAD) permanently replaces the federal standard deduction for South Carolina individual income tax. Under this reform, state taxable income calculation begins with Federal Adjusted Gross Income (AGI) rather than federal taxable income. The baseline SCIAD deduction is $15,000 for Single and Married Filing Separately filers, $30,000 for Married Filing Jointly and Surviving Spouses, and $22,500 for Head of Household. Nonresidents reduce their SCIAD proportionally based on their ratio of SC gross income to total federal gross income.

No. As part of the comprehensive tax reform enacted in Act 110, South Carolina decoupled from Internal Revenue Code Sections 63(b) through (g). Federal itemized deductions (such as mortgage interest, state and local taxes, and charitable contributions) are no longer deducted on Form SC1040. Instead, all individual taxpayers receive the standardized South Carolina Income Adjusted Deduction (SCIAD).

No. South Carolina state law strictly prohibits local governments, cities, and counties from imposing local personal income taxes, earnings taxes, or municipal payroll taxes. Workers across Charleston, Columbia, Greenville, Mount Pleasant, Rock Hill, and all 46 counties pay 0.00% local income tax. Local municipal budgets are funded through local property taxes, business license fees, and local option sales taxes.

No. South Carolina does not operate a state-mandated disability insurance program or a state-administered paid family and medical leave program for private-sector employees. There are zero state employee payroll deductions for SDI, TDI, or PFML on South Carolina paystubs. State Unemployment Insurance (SUI) is funded 100% by employer contributions with zero employee deduction.

South Carolina does not have a separate state minimum wage statute and operates under the federal Fair Labor Standards Act (FLSA) pursuant to S.C. Code Ann. § 41-10-10 et seq. The minimum wage is $7.25 per hour for non-exempt hourly employees. For tipped employees, employers may pay a direct cash wage of $2.13 per hour, claiming an allowable tip credit of $5.12 per hour (provided direct cash wages plus tips equal at least $7.25/hr). Under S.C. Code Ann. § 6-1-130, local municipalities are legally preempted from setting higher minimum wage rates.

Employees in South Carolina must submit Form SC W-4 (South Carolina Employee’s Withholding Allowance Certificate) to their employer upon hire or when adjusting state withholding. Employers use the allowances claimed on Form SC W-4 in conjunction with SCDOR withholding formula WH-1603F. Under the formula, each personal allowance is valued at $5,000 annually ($192.31 bi-weekly), and an automatic standard deduction allowance is granted for employees claiming one or more allowances.

South Carolina conforms to federal Internal Revenue Code rules regarding pre-tax employee benefit deductions. Elective deferrals to traditional 401(k), 403(b), and 457 retirement plans reduce federal taxable income and South Carolina state taxable income (reducing Box 1 and Box 16 on Form W-2). Qualifying Section 125 deductions—such as employer-sponsored medical, dental, and vision insurance premiums, and HSA contributions—reduce federal income tax, South Carolina state income tax, and federal FICA payroll taxes.

South Carolina does not have reciprocal income tax agreements with North Carolina or Georgia. If you live in South Carolina and commute to work in Charlotte (NC) or Augusta (GA), your wages are subject to nonresident income tax in the state where the work is physically performed. You must file a nonresident return in that state and file a resident return (Form SC1040) in South Carolina. Under S.C. Code Ann. § 12-6-3400, South Carolina grants a resident credit on Form SC1040TC for income taxes paid to another state, preventing double taxation on the same earnings.

Under the federal Servicemembers Civil Relief Act (SCRA) as amended by the Military Spouses Residency Relief Act (MSRRA) and the Veterans Benefits and Transition Act, a civilian spouse of an active-duty servicemember stationed in South Carolina can claim complete exemption from South Carolina state income tax withholding on Form SC W-4 (Line 6). To qualify, the spouse must share the same legal state of residence as the servicemember and be present in South Carolina solely to accompany the servicemember on military orders.

Under SCDOR withholding rules, when supplemental wages (such as annual bonuses, sales commissions, overtime premiums, or severance payments) are paid separately from regular wages, employers may withhold state income tax at South Carolina’s top marginal rate of 5.21% (reduced from 6.00% under Act 110).

South Carolina individual income tax returns (Form SC1040) are due on April 15 following the close of the calendar year (or the next business day if April 15 falls on a weekend or state holiday). An automatic 6-month extension to October 15 is available by filing federal Form 4868 or SC Form SC4868. However, an extension to file is not an extension to pay; at least 90% of state tax liability must be remitted by April 15 to avoid late-payment interest and statutory penalties.