South Carolina 2026 Tax Changes Calculator
See the impact of H.4216 on South Carolina households
South Carolina 2026 Tax Changes
South Carolina's H.4216 (Act 110), signed March 30, 2026, restructured the state income tax for tax years beginning after 2025. The bill introduces consolidates the three-bracket rate schedule into two brackets, replaces federal deductions with a state-specific SCIAD deduction, and caps the nonrefundable state EITC at $200.
Simplified brackets
Replaces the 2025 graduated rates (0%/3%/6%) with two brackets: 1.99% on the first $30,000 of taxable income and 5.21% above.
SCIAD deduction
New SC Income Adjusted Deduction replaces federal standard/itemized deductions. Phased out at higher incomes; base amount varies by filing status.
EITC cap
Caps South Carolina's nonrefundable state Earned Income Tax Credit at $200 per filer. Previously the state credit was 125% of the federal EITC with no dollar cap.
Parameter changes (2026)
| Parameter | Pre-2026 law | Current law (2026) |
|---|---|---|
| Tax rates | 0% / 3% / 6% | 1.99% / 5.21% |
| Bracket thresholds | $3,560 / $17,830 | $30,000 |
| SCIAD base (Single/MFS · HoH · Joint/Surviving) | N/A | $15,000 / $22,500 / $30,000 |
| State EITC cap | None | $200 |
References
SC H.4216
Calculations
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