Bill > H3498

This bill proposes to modify South Carolina's individual income tax structure by introducing a significant tax break for high-income earners. Specifically, the bill would create a new tax rate schedule for taxable years beginning after 2024, where the first one million dollars of taxable income would be taxed at a 0% rate (effectively exempt from taxation), while any income above one million dollars would be taxed at a 6% rate. This means that individuals, estates, trusts, and other taxable entities with incomes over one million dollars would only pay tax on the amount exceeding that threshold. The income tax brackets will continue to be indexed in accordance with existing state law (Section 12-6-520), which typically adjusts tax brackets for inflation. The bill would take effect immediately upon the Governor's approval, representing a potentially substantial tax reduction for high-income South Carolina taxpayers by eliminating taxes on the first million dollars of income.

Budget and Finance

https://www.scstatehouse.gov/billsearch.php?billnumbers=3498&session=126&summary=B