Here are five of the most significant changes taking effect in the Palmetto State this New Year.
1. Individual Income Tax Consolidation (H 4216)
South Carolina continues its multi-year plan to simplify and lower the state income tax. Starting January 1, the state moves toward a more streamlined tax structure with a target top marginal rate of 3.99%.
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- The Change: This legislation aims to collapse the State multi-bracket system into a flatter model eventually. For the 2026 tax year, the top rate is reduced to provide relief to a broader range of taxpayers.
- Long-term Goal: The law includes “triggers” that could allow the rate to drop…