Henry McMaster joined state lawmakers today to ceremonially sign a new income tax reform bill into law. The legislation, known as H. 4216, simplifies the state’s tax system and lowers rates for many South Carolinians.
Starting in 2026, the current three-tier tax system will be replaced with two rates—1.99 percent on income up to 30-thousand dollars, and 5.21 percent above that, down from the current top rate of 6 percent. State leaders say the changes are expected to save taxpayers about 325 million dollars, with nearly 43 percent of filers projected to see a reduction in what they owe. The law also creates a new deduction aimed at helping lower-income households and sets up a plan for future tax cuts, with the long-term goal of eventually eliminating the state income tax altogether.