South Carolina Moving Quickly to Cut Tax Rates and Brackets

Legislation cutting personal income taxes across South Carolina sped through the House on Wednesday, softening the state’s reputation for what Gov. Henry McMaster said was the highest personal income tax rate in the Southeast and the 12th-highest in the nation.

The House unanimously approved a proposal (H. 4880) that would lower rates and condense the number of tax brackets to three from six. Under the plan, earnings below $3,200 wouldn’t be taxed. The current 4%, 5%, and 6% tax brackets would be consolidated into a single 3% bracket for tax year 2022. The top 7% bracket would be ...