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South Carolina · 2027 and beyond
South Carolina in 2027 and beyond: what is already law, and what is still open
No tax question on the ballot. 2026 brings a rebuilt return; a 2027 rate cut depends on a February 15 forecast. What is on the 2026 return, what starts with tax year 2027, and what is scheduled or conditional after that.
By Charles Trautman, EA, editor
Need to Know Tax · written from South Carolina Department of Revenue (SCDOR) sources and the unofficial November 3 election returns, November 12, 2026 · not yet reviewed by a South Carolina practitioner
No tax question on the ballot. 2026 brings a rebuilt return; a 2027 rate cut depends on a February 15 forecast. This page keeps apart three things that get mixed together in the news: what is on the 2026 return you file in early 2027, what begins with tax year 2027, and what is scheduled, conditional or still undecided after that. Election figures are the unofficial November 3, 2026 returns and are not final until the state certifies them.
What the voters decided on November 3, 2026
No statewide tax measure was on the November 3, 2026 ballot in South Carolina. Nothing voted on that day changes a South Carolina return.
This return, next year, and later
| When | What applies |
|---|---|
| The 2026 return, filed in early 2027 | The SC1040 now starts from federal adjusted gross income, with a new South Carolina Income Adjusted Deduction in place of the federal deductions. |
| There are two rates: 1.99% under $30,000 and 5.21% above (Act 110). | |
| South Carolina does not allow the federal tips, overtime or senior deductions; its conformity date is frozen at December 31, 2024. | |
| Starting with tax year 2027 | The 5.21% rate drops if the Board of Economic Advisors projects on February 15, 2027 that individual income tax revenue will grow at least 5%. |
| A $10,000 exemption for small-business personal property begins with property tax year 2027. | |
| 2028 and later, or conditional | The same test repeats each year until the top rate reaches the lower one. |
Items under 2027 and later do not change the 2026 return. They matter for 2027 withholding, estimated payments and planning. The detail behind each line is in the other South Carolina articles.
The 2025 federal law and the South Carolina return
South Carolina follows the federal code as of a fixed date, and the bill to update it failed on March 31, 2026. For 2026 the starting point changed from federal taxable income to federal AGI.
That is the reason a change on the federal return, such as the deductions for tips, overtime and people 65 and older, may or may not show up on the South Carolina return. The federal side is in The new deductions for tips, overtime and seniors.
What to watch
The Board of Economic Advisors’ February 15, 2027 forecast, and the redesigned 2026 SC1040. When something on this page changes, the change is logged on the updates page with its date.
What to bring
- Your 2026 federal and South Carolina returns, once filed, to set 2027 withholding and estimated payments against them
- Your last pay stub of 2026 and the first of 2027, to see whether withholding changed
- Any notice from the state about a 2027 rate, credit or filing change
Questions people ask
Does anything here change the South Carolina return I file in early 2027?
Only what is listed under the 2026 return. Everything listed under 2027 or later affects withholding, estimated payments and planning, not the return for 2026.
How will I know if this page changes?
Every change is logged on the updates page with its date and the article it affects. State legislatures meet in early 2027 and some act before the filing deadline.
South Carolina, after the election
No tax question on the ballot. 2026 brings a rebuilt return; a 2027 rate cut depends on a February 15 forecast.
Written by Charles Trautman, EA, editor · Need to Know Tax, Lone Tree, Colorado
Questions about this article in South Carolina are answered by [your practice name] · [your phone] · [your email address]. We’re looking for an EA or CPA in each South Carolina city to hold that city’s seat and take this spot — is that you?
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These South Carolina pages were written by the editor from the South Carolina Department of Revenue (SCDOR)’s own publications, and they need a South Carolina practitioner’s eye. One enrolled agent or CPA in each South Carolina city holds that city’s seat: reads these pages before the filing season and is credited as a reviewer, is named on every page of their city’s edition, and answers its readers’ questions. $1,000 for the 2026 season, the charter price. Take your city’s seat (a two-minute form and a card), tell us you’re interested, write to editor@needtoknowtax.com, or read how it works.
Sources and where to check
- SCDOR: Individual Income Tax, what’s new for tax year 2026
- SCDOR: Information about H. 4216 (April 15, 2026)
- SCDOR Information Letter 26-20 (August 31, 2026)
- SCDOR: Estimated payments due September 15, read Information Letter 26-20 first (September 1, 2026)
- SCDOR Information Letter 26-4 (revised January 30, 2026)