South Carolina uses a progressive income tax with a top rate of 6.2%. Higher earners pay a larger percentage of their income — different brackets apply to different income ranges.
South Carolina reduced its top income tax rate to 6.2% in 2024, part of a plan to cut to 6.0% in 2027. It has six income tax brackets.
South Carolina is phasing down its top rate from 7% to 6% over several years — check current rates before processing payroll each year.
South Carolina Payroll Tax Summary
State Income TaxUp to 6.2% (progressive)
Tax TypeProgressive (brackets)
Social Security6.2% on first $176,100
Medicare1.45% (+ 0.9% over $200K)
FUTA (employer)0.6% on first $7,000
Employee FormSouth Carolina SC W-4
FAQ
South Carolina payroll tax questions
What is the top South Carolina income tax rate for 2026?
South Carolina's top income tax rate is 6.2% for 2026. This is a marginal rate — it only applies to income above the top bracket threshold. Lower income falls into lower brackets. Use the calculator above to see your effective rate.
What taxes do South Carolina employees pay on their paycheck?
South Carolina employees pay: (1) Federal income tax (based on W-4 withholding); (2) Social Security tax (6.2% on wages up to $176,100); (3) Medicare tax (1.45%, plus 0.9% on income over $200,000); (4) South Carolina state income tax (Up to 6.2% (progressive)); The employer matches the Social Security and Medicare portions.
What payroll withholding form do South Carolina employees use?
South Carolina employees complete South Carolina SC W-4 for state withholding in addition to the federal W-4. Employers use both forms to calculate the correct combined withholding amount.