summary
Introduced
03/25/2025
03/25/2025
In Committee
05/07/2025
05/07/2025
Crossed Over
05/07/2025
05/07/2025
Passed
03/10/2026
03/10/2026
Dead
Introduced Session
126th General Assembly
Bill Summary
Amend The South Carolina Code Of Laws By Amending Section 12-6-510, Relating To Income Tax Rates For Individuals, Estates, And Trusts, So As To Reduce The Top Marginal Income Tax Rate To 5.21 Percent, To Create Another Income Tax Bracket To Which A 1.99 Percent Rate Applies, And To Set Forth Standards For Additional Reductions; By Amending Section 12-6-50, Relating To Internal Revenue Code Sections Specifically Not Adopted By The State, So As To Not Adopt The Federal Standard Deduction And Itemized Deduction; By Amending Section 12-6-1140, Relating To Income Tax Deductions, So As To Allow For A South Carolina Income Adjusted Deduction (sciad); By Amending Section 12-6-4910, Relating To Persons Required To File A Tax Return, So As To Make A Conforming Change To The Calculation; By Amending Section 12-6-1720, Relating To Adjustments To The Taxable Income Of Nonresident Individuals, So As To Make A Conforming Change; And By Amending Section 12-6-3632, Relating To The Earned Income Tax Credit, So As To Establish A Maximum Credit Amount. - Ratified Title
AI Summary
This bill proposes significant changes to South Carolina's income tax system, aiming to reduce tax rates and adjust deductions. Starting with tax years after 2025, it seeks to lower the top marginal income tax rate to a flat 3.99 percent, with provisions for further reductions based on revenue growth and surplus amounts, potentially leading to an eventual zero percent income tax rate. Crucially, the bill will no longer adopt the federal standard deduction and itemized deduction, instead introducing a new "South Carolina Income Adjusted Deduction" (SCIAD) with varying amounts based on filing status, but this deduction may be reduced for higher earners. Conforming changes are also made to rules regarding who must file a tax return and how non-resident income is calculated, and the Department of Revenue will adjust withholding tables to reflect these changes.
Committee Categories
Budget and Finance
Sponsors (55)
Bruce Bannister (R)*,
William Bailey (R),
Nathan Ballentine (R),
Phillip Bowers (R),
Jeff Bradley (R),
Gary Brewer (R),
Case Brittain (R),
Joe Bustos (R),
Paula Calhoon (R),
Micah Caskey (R),
Bobby Cox (R),
Brandon Cox (R),
Heather Crawford (R),
Sylleste Davis (R),
Shannon Erickson (R),
Cal Forrest (R),
Craig Gagnon (R),
Gil Gatch (R),
Doug Gilliam (R),
Val Guest (R),
Brandon Guffey (R),
Bill Hager (R),
Tom Hartnett (R),
Charles Hartz (R),
Bill Herbkersman (R),
Lee Hewitt (R),
Davey Hiott (R),
Bill Hixon (R),
Harriet Holman (R),
Jay Jordan (R),
Kathy Landing (R),
Brian Lawson (R),
Randy Ligon (R),
Steven Long (R),
Phillip Lowe (R),
David Martin (R),
Cody Mitchell (R),
Scott Montgomery (R),
Travis Moore (R),
Dennis Moss (R),
Chris Murphy (R),
Mike Neese (R),
Brandon Newton (R),
Fawn Pedalino (R),
Tommy Pope (R),
Robby Robbins (R),
Carla Schuessler (R),
Heath Sessions (R),
Mark Smith (R),
Murrell Smith (R),
Bill Taylor (R),
James Teeple (R),
David Vaughan (R),
Mark Willis (R),
Richie Yow (R),
Last Action
Ratified R 117 (on 03/25/2026)
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