South Carolina State Income Tax Withholding
Last Updated: January 2026
Overview
South Carolina uses a progressive income tax system that is currently in transition. The state is phasing in rate reductions with the goal of reaching a lower top marginal rate over several years.
2026 Tax Rates
| Taxable Income | Tax Rate |
|---|---|
| $0 - $3,460 | 0% |
| $3,461 - $17,330 | 3.0% |
| Over $17,330 | 6.0% |
Top Marginal Rate: 6.0%
Note: South Carolina is in a multi-year transition to reduce the top rate. Check the SC Department of Revenue for the most current rates.
Deductions and Exemptions
South Carolina uses federal amounts for deductions:
Standard Deduction (2026)
| Filing Status | Amount |
|---|---|
| Single | $14,600 |
| Married Filing Jointly | $29,200 |
| Head of Household | $21,900 |
Personal Exemption
- Amount: South Carolina does not have a separate personal exemption
- Dependent Exemption: Uses federal dependent rules
Supplemental Wage Rate
- Supplemental wages: 6.0% (top marginal rate)
Special Considerations
- Form SC W-4: South Carolina accepts the federal Form W-4; employees may also complete SC W-4 for additional state adjustments
- No Local Income Taxes: South Carolina does not have local income taxes
- Military Retirement: Military retirement pay is fully exempt from South Carolina income tax
- Social Security: Social Security benefits are exempt from South Carolina income tax
Tax Rate Reduction Phase-In
South Carolina has enacted legislation to gradually reduce income tax rates:
- The state is transitioning from a 7% top rate to a lower rate over multiple years
- Annual reductions depend on revenue triggers
- Employers should verify current rates at the beginning of each tax year
Reciprocal Agreements
South Carolina has no reciprocal tax agreements with other states.