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SC H4216
Bill
Status
Enrolled
3/10/2026
Primary Sponsor
Bruce Bannister
Click for details
AI Summary
- Reduces South Carolina's income tax to a two-bracket system for tax years after 2025: 1.99% on income up to $30,000 and 5.21% on income above $30,000.
- Establishes automatic future rate reductions when individual income tax revenues are projected to increase by at least 5%, with cuts of $200 million or 25% of the surplus (whichever is greater), continuing until the rate reaches zero.
- Creates a new South Carolina Income Adjusted Deduction (SCIAD) of $15,000 for single filers, $22,500 for head of household, and $30,000 for married filing jointly, phasing out at higher income levels.
- Eliminates the federal standard deduction and itemized deduction for South Carolina tax purposes, replacing them with the SCIAD.
- Caps the state earned income tax credit at $200, reduced from 125% of the federal EITC with no dollar limit.
Legislative Description
Income tax
Last Action
Roll call Yeas-71 Nays-49
3/10/2026
Committee Referrals
Finance5/7/2025
Ways and Means3/25/2025
Full Bill Text
No bill text available