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July 17, 2024
2024-1390

South Carolina law lowers top marginal personal income tax rate retroactive to January 1, 2024

On July 3, 2024, Governor Henry McMaster approved H. 5100, which retroactive to January 1, 2024, lowers the top marginal personal income tax rate from 6.4% to 6.2% with graduated decreases over the next four years until the top tax rate reaches 6.0%. The tax cut is part of the 2024-25 state budget.

This is the third consecutive year that legislation was enacted to lower the state's top marginal personal income tax rate.

In 2022, S. 1087 lowered the top marginal personal income tax rate from 7% to 6.5% retroactive to January 1, 2022.

In 2023, H. 4300 further decreased the top marginal personal tax rate to 6.4% effective January 1, 2024, with gradual decreases over the next five years until the top tax rate reaches 6.0%.

Supplemental wages

South Carolina does not require a supplemental rate of withholding for irregular wages payments such as bonuses.

Ernst & Young LLP insights

The updated withholding formula and tables once available will be published here.

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Contact Information

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Published by NTD’s Tax Technical Knowledge Services group; Andrea Ben-Yosef, legal editor
 

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