South Carolina H 4216: Income tax

Bill Text

2025-2026 Bill 4216 Text of Previous Version (Feb. 24, 2026) - South Carolina Legislature Online 

South Carolina General Assembly
126th Session, 2025-2026

Bill 4216

Indicates Matter Stricken
Indicates New Matter

(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

Indicates Matter Stricken

Indicates New Matter

Amended

February 24, 2026

H. 4216

Introduced by Reps. Bannister, Pope, G. M. Smith, 
B. Newton, Hiott, Murphy, Moss, Crawford, Bradley, Hager, M. M. Smith, Bustos, 
Landing, Lowe, Lawson, B. J. Cox, Jordan, Brittain, Forrest, Neese, Vaughan, 
Long, Montgomery, Davis, Sessions, C. Mitchell, Gatch, Herbkersman, Schuessler, 
Caskey, T. Moore, Hewitt, Erickson, Bowers, Gilliam, Teeple, Guest, Bailey, 
Guffey, Holman, Yow, Ballentine, Martin, Calhoon, Taylor, Hartnett, Robbins, 
Willis, Cox, Ligon, Brewer, Gagnon, Hartz, Hixon and Pedalino 

S. Printed 2/24/26--S.

Read the first time May 7, 2025

________

A bill

TO 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 INCOME TAX RATE TO A FLAT 3.99 PERCENT 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; AND BY AMENDING SECTION 12-6-1720, 
RELATING TO ADJUSTMENTS TO THE TAXABLE INCOME OF NONRESIDENT INDIVIDUALS, SO AS 
TO MAKE A CONFORMING CHANGE.

Be it enacted by the 
General Assembly of the State of South Carolina:

SECTION 1. Section 12-6-510(C) of the S.C. Code is amended to 
read:

 (C)(1) Notwithstanding subsections (A) 
and (B), for taxable years beginning after 2025, a tax is imposed on the South 
Carolina taxable income of individuals, estates, and trusts and any other 
entity except those taxed or exempted from taxation under Sections 12-6-530 
through 12-6-550 computed at the following rates with the income brackets 
indexed in accordance with Section 12-6-520:

 34

 At least

 But less than

 Compute tax as follows

 35

 $0

 $30,000

 1.99% times the amount

 36

 37

 $30,000

 or more

 5.21% times the amount minus 
 $966

 (2)(a) Notwithstanding the provisions of 
item (1), beginning with Tax Year 2027 and each year thereafter, the top 
marginal income tax rate set forth in item (1) must be decreased if individual 
income tax revenues collected pursuant to this chapter, minus amounts credited 
to the Trust Fund for Tax Relief, are projected to increase by at least five 
percent in the fiscal year that begins during the tax year in comparison to 
projected individual income tax revenues collected pursuant to this chapter, 
minus

 amounts credited to the Trust Fund for Tax Relief, for the 
current fiscal year. The reduction required by this item shall continue until 
the top marginal income tax rate equals 1.99 percent.

 (b) Beginning with the first tax year 
after the reduction required by subitem (a) is fully complete, the 1.99 percent 
must be decreased in the same manner as provided in subitem (a) until the 
income tax rate equals zero percent. Additionally, once the reduction required 
by subitem (a) is fully complete, notwithstanding item (1), the 1.99%, or 
further reduced rate, shall apply to all South Carolina taxable income.

 (c) The Board of Economic Advisors 
shall make the determination regarding income tax projections beginning with 
the initial forecast required pursuant to Section 11-9-1130.

 (3) If the five percent threshold set 
forth in item (2) is met, the income tax rate shall be permanently and 
cumulatively reduced by a percentage that the Board of Economic Advisors 
projects to result in a reduction in individual income tax revenues collected 
pursuant to this chapter equal to two hundred million dollars in the fiscal 
year that begins during the tax year or twenty-five percent of the recurring 
income tax revenue surplus for the fiscal year that begins during the tax year, 
whichever is greater. The surplus amount must be calculated in the same manner 
as increases in income tax collections are calculated pursuant to item (2)(a). 
However, if the five percent threshold set forth in item (2) is met and is not 
projected to result in increased collections of at least two hundred million 
dollars in the fiscal year that begins during the tax year, then the reduction 
is limited to the projected amount of increased collections. Any reduction made 
pursuant to this subsection must be rounded up to the nearest hundredth of a 
percent.

 (4) Upon the issuance of the initial 
forecast, the Executive