South Carolina paycheck guide
South Carolina's new 2026 income tax
Starting with the 2026 tax year, South Carolina no longer begins with federal taxable income or borrows the federal standard deduction. The return now starts from federal adjusted gross income, and the state subtracts its own SC income adjusted deduction: up to $15,000 for single filers, $22,500 for heads of household, and $30,000 for married couples filing jointly.
That deduction phases out as income rises, which is the feature most specific to the new system. In our single-filer examples it is the full $15,000 at a $30,000 salary, $12,280 at $50,000, and $5,460 at $75,000, and it is gone entirely by $100,000. Above that point every dollar of wages is taxable in South Carolina.
Taxable income is then taxed at 1.99% up to $30,000 and 5.21% above $30,000, with the same threshold for every filing status. The law also lets the top rate fall in later years if state revenue grows fast enough, and it caps the state earned income tax credit at a small fixed amount. Because AGI already excludes traditional 401(k), 403(b), and HSA payroll contributions, those deferrals still lower South Carolina tax.
Worked example: $75,000 in South Carolina
A single filer earning $75,000 with no pre-tax deductions has federal AGI of $75,000. At that income the SC income adjusted deduction has phased down to $5,460, leaving $69,540 of South Carolina taxable income. The first $30,000 is taxed at 1.99% ($597) and the remaining $39,540 at 5.21% ($2,060), for $2,657 of state tax, an effective rate of 3.54%.
The federal return runs separately now. The $16,100 federal standard deduction leaves $58,900 of federal taxable income, taxed at 10% on $12,400, 12% on $38,000, and 22% on $8,500 for $7,670. At this salary South Carolina taxes $69,540 of income while the IRS taxes $58,900, because the state deduction has already shrunk well below the federal one.
FICA withholding adds $4,650 for Social Security and $1,088 for Medicare. A South Carolina single filer ends the year with $58,935, close to $4,911 a month. The South Carolina $75,000 salary page breaks it down by pay period, and the $20 an hour page shows the hourly version.
No local income tax, and what else comes out
No South Carolina city or county taxes wages. Workers in Columbia, Charleston, Greenville, and Myrtle Beach have the same paycheck deductions: federal income tax, Social Security, Medicare, and South Carolina income tax. Local governments rely on property and sales taxes instead.
South Carolina also has no state disability or paid family leave payroll program, and unemployment insurance is funded by employers. That keeps the pay stub simpler than in states such as New York or New Jersey, where employees fund disability programs through payroll.
Form SC W-4 and the Charlotte and Augusta commutes
Employers withhold South Carolina tax based on Form SC W-4, which is separate from the federal W-4. Because H.4216 was signed in March 2026, withholding early in the year may not have matched the new rates and deduction, so compare your year-to-date state withholding with the bill on this page and adjust the SC W-4 if they are far apart.
South Carolina has no reciprocity agreements, which matters in York and Lancaster counties, where many residents work in Charlotte. A South Carolina resident working in North Carolina pays North Carolina tax on those wages, then claims South Carolina's credit for income tax paid to another state. The same applies to North Augusta residents who work across the river in Augusta, Georgia.
If you live in South Carolina and work remotely for an out-of-state employer, South Carolina taxes the wages as a resident. Ask the employer to withhold South Carolina tax, or make quarterly estimated payments.
How South Carolina compares with its neighbors
At $75,000, South Carolina ranks 29th of 51 for take-home pay, and 33rd at $150,000, where the deduction has fully phased out. North Carolina's flat 3.99% rate leaves a single filer $173 more at $75,000, a much smaller gap than before the 2026 law. Georgia's flat 4.99% rate leaves $337 less.
Against a state with no income tax, South Carolina costs a $75,000 earner $2,657 a year. For the Charlotte-region choice between Fort Mill or Rock Hill and the North Carolina side, see North Carolina vs South Carolina.
What to expect at your income
Earning under $50,000
Under $50,000, the new SC income adjusted deduction and the 1.99% first bracket keep state tax low. A single filer earning $30,000 keeps the full $15,000 deduction, pays $299, an effective rate of 1%, and takes home $25,986. A $50,000 salary carries $999 of state tax and nets $41,356, or $1,591 per biweekly check. A full-time hourly job paying $31,200 a year owes $322 to the state and leaves $12.95 for each hour worked. The state earned income credit is now capped at a small amount, so the federal EITC matters more.
Earning $50,000 to $150,000
Between $50,000 and $100,000 a single filer faces the 5.21% rate plus a shrinking deduction, so each extra dollar costs a bit more than 5.21% in state tax until the phase-out ends. At $100,000 the deduction is gone: South Carolina takes $4,244, a 4.24% effective rate, and take-home is $74,936, or $6,245 a month. A married couple filing jointly on $100,000 pays $2,965, thanks to the larger joint deduction. Traditional 401(k) deferrals lower AGI, so they save state tax as well as the 22% federal rate.
Earning over $150,000
Above $150,000 the 5.21% state rate stacks on federal brackets of 24% and 32%, with no state deduction left. A single filer earning $150,000 pays $6,849 to South Carolina and keeps $106,942; a $250,000 salary owes $12,059, a 4.82% effective rate, and nets $171,123. That puts South Carolina 33rd of 51 at $150,000. If revenue growth triggers the rate cuts the 2026 law allows, high earners gain the most.
South Carolina paycheck tips
Charlotte commuters: claim the other-state credit
If you live in South Carolina and pay North Carolina tax on your wages, claim South Carolina's credit for taxes paid to another state so the income is not fully taxed twice.
Check your SC W-4 against the new law
The 2026 rates and deduction took effect for the whole year even though the law passed in March. Compare year-to-date withholding with your expected bill and adjust the SC W-4 if needed.
Use pre-tax deferrals to lower AGI
South Carolina now starts from federal AGI, so traditional 401(k) and HSA payroll contributions reduce state taxable income dollar for dollar, at 5.21% for most full-time workers.
Look at the Future Scholar 529 deduction
Contributions to South Carolina's Future Scholar 529 plan are deductible on the state return. The saving shows up when you file, not in your paycheck.
Common mistakes
Using the federal standard deduction for South Carolina
Since 2026 South Carolina has its own deduction, and it phases out with income. At $75,000 it is $5,460, not the federal $16,100, so estimates built on the old rules understate state tax.
Skipping the South Carolina return when working in North Carolina
A South Carolina resident with North Carolina wages files both returns. North Carolina tax is withheld at work, but the South Carolina return is still required to report the income and claim the credit.
Moving to or from South Carolina
Moving to South Carolina
Moving to South Carolina from Georgia raises take-home by $337 at $75,000, while coming from North Carolina costs $173 a year at that salary. South Carolina has no city income tax, so the choice between Charleston, Greenville, and Columbia does not change withholding. Lower earners benefit most from the 2026 system, since the full $15,000 deduction and the 1.99% rate cover most of a modest salary.
Leaving South Carolina
Leaving South Carolina for North Carolina raises take-home by $173 at $75,000, and the gap grows at higher incomes once South Carolina's deduction phases out. A move to a no-income-tax state saves $2,657 at that salary. For the move year, file South Carolina as a part-year resident and report only income earned while you lived there.