South Carolina has had the dubious honor of having the highest personal income tax rates in the Southeast and number twelve in the nation at 7%. Governor Henry McMaster began calling for cuts in 2018. Since then South Carolina has seen personal income tax rates decrease from 7% in 2022 to 6.5% in 2023. In the upcoming new year, more changes will be coming to the tax rates beginning January 1, 2024.
The FY 2023-2024 state budget was signed into law in June 2023 by Governor McMaster incorporating $96.2 million for a .1% tax cut. The end goal is to “reduce personal income tax by .1% every year until reaching a total of 6%”, according to the Governor’s office.
The goal is to reach 6% in 2028 dropping the personal income tax rate by .1% per year, but it will be dependent on the availability of funding in the upcoming years.
For more information visit www.wltx.com.
