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South Carolina shifts to a two-rate income tax system starting in 2026.
Gov.
Henry McMaster signed a law shifting South Carolina to a two-rate income tax system in 2026: 1.99% on income up to $30,000 and 5.21% above that, reducing the previous top rate.
The change is projected to save taxpayers about $325 million annually, with nearly 43% seeing lower bills.
A new Income Adjusted Deduction will help lower-income residents.
Future automatic rate reductions are tied to revenue growth, aiming eventually to eliminate the income tax.
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Carolina del Sur cambia a un sistema de impuesto sobre la renta de dos tasas a partir de 2026.