Leaders in South Carolina announced Tuesday what will happen to the state’s income tax.
In 2026, a new bill introduced by Governor Henry McMaster would raise the state income tax to 3.99% for all individuals, regardless of their income.
At the moment, the state income tax ranges from 0% to 6.2%.
The chairman of the House Ways and Means Committee, Representative Bruce Bannister (R-Greenville), stated that the General Assembly will strive to reach a second objective of 2.49% income tax after 2026.
“We keep the promise that we’re going to continue to go down. We anticipate putting in the bill and additional $200 million each year that the budget continues to be healthy,” Bannister stated.
South Carolina’s income tax would be lower under this plan than that of North Carolina, Georgia, Alabama, and Virginia.
“Lower tax rate, a simpler tax system, and more money in your pocket,” Bannister continued. “It’s a win for families, workers, and businesses in South Carolina.”
House Minority Leader Representative Todd Rutherford (D-Richland) stated that while this is an excellent idea, it is crucial that lower-income taxpayers be not harmed.
“Democrats are not going to stand in the way of cutting taxes,” Rutherford stated. “We just want to make sure that it is done responsibly, that they were cutting the right taxes, and furthermore, that we have new income sources coming in.”
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The law would increase the income tax rate for the 44% of the state’s population that now do not pay it from zero to 3.99%.
“Everybody has to pay something, a little something at least to be a part of this great state of South Carolina,” Governor McMaster stated.
“That’s the beauty of a flat rate that those who pay lower will pay less taxes, and those who earn more will pay more taxes,” Speaker of the House, Representative, Murrell Smith (R – Sumter) stated.
Leaders stated that sales and property taxes will be discussed in addition to this bill.
According to Bannister, this plan keeps all current credits and deductions, such as those for older persons, military families, and families with dependents.
This Information has been sourced from cbs17
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