South Carolina pay stubs: state taxes and withholding
South Carolina reshaped its income tax for 2026 into two rates, 1.99% and 5.21%. Learn what is withheld from a South Carolina paycheck and why.
Last reviewed
Rates on this page are for the 2026 tax year and are reviewed every January.
State income tax
South Carolina changed its income tax structure in 2026. A new law applies to the 2026 tax year and sets two rates: 1.99% on the lower portion of taxable income and 5.21% on income above that. It replaced the earlier system, which had a zero bracket, a 3% bracket and a higher top rate. The law also includes a mechanism for further cuts in later years if revenue grows.
Employees use the SC W-4 to set their state withholding, and the South Carolina Department of Revenue publishes withholding tables for employers. Because the law passed after the year began, check the SCDOR withholding page for the most recent tables and guidance. Any difference between what was withheld and what is owed evens out when the employee files their state return.
Other state payroll deductions
South Carolina has no state disability insurance, paid family leave program or employee unemployment contribution. State unemployment tax is an employer cost. The remaining lines on a stub are usually voluntary benefits, retirement contributions or court-ordered deductions such as child support.
Local taxes
There are no city or county income taxes in South Carolina, so withholding is the same anywhere in the state.
Federal withholding still applies
- Federal income tax, figured from the employee's Form W-4.
- Social Security at 6.2% on wages up to the annual Social Security wage base.
- Medicare at 1.45% on all wages, plus 0.9% additional Medicare above $200,000.
Creating a South Carolina pay stub with PayStubNest
Open a new pay stub, enter hours worked and the hourly rate or a salary, and choose South Carolina. The exact figures on each stub depend on the employee's pay, pay frequency, W-4 choices, deductions and year-to-date totals, and PayStubNest calculates all of it automatically: federal and South Carolina withholding, with year-to-date totals carried forward so each stub builds on the last. Preview for free and pay only when you download.
Record-keeping tip
In a year when state rates change mid-stream, make a short note in your payroll records of the date you started using updated withholding tables. It explains any step change in the state line between stubs and helps when you reconcile year-end totals. For stub questions, see our guides and FAQ.