South Carolina’s tax changes for 2026 mirror federal updates from the “One Big Beautiful Bill,” which extended and expanded the 2017 Tax Cuts and Jobs Act provisions, boosting standard deductions beyond normal inflation adjustments.
Key Deduction Increases
The standard deduction rose by $750 to $1,500 per person, providing an extra $200–300 annually for many Lowcountry workers. This permanent reset establishes a higher baseline for future inflation tweaks, avoiding a drop to pre-2017 levels.[conversation_history]
Updated Tax Brackets
IRS adjustments to 2026 federal brackets combat inflation-driven “bracket creep,” keeping real tax burdens stable despite wage growth. South Carolina’s conformity amplifies these benefits for state filers.[conversation_history]
Expert Insights
College of Charleston professor Thomas Spade notes the changes deliver tangible paycheck relief, especially amid rising costs. Taxpayers should review withholding via IRS tools for optimal results.
