South Carolina Reduces Income Tax Rate for Individuals, Estates, Trusts

The South Carolina Governor signed a law amending the state tax code to reduce the income tax rate for individuals, estates, and trusts. The law reduces the top marginal income tax rate to 5.21 percent, creates a new income tax bracket at 1.99 percent, decouples from federal deductions by introducing the South Carolina Income-Adjusted Deduction (SCIAD), and sets a $200 cap on the state Earned Income Tax Credit. The law took effect on Mar. 30. [H.B. 4216, enacted 03/30/26]

This story was produced by Bloomberg Tax Automation, and edited by Bloomberg Tax staff.