Many South Carolina workers may notice an increase in their take-home pay thanks to changes in federal tax law that are now in effect for 2026.
As the state’s taxation system closely follows federal rules, the state is also adjusting withholding and deductions that could mean more money in employees’ paychecks, according to wbtv.com
The updated rules stem from federal tax legislation passed in 2025, sometimes referred to as the ‘One Big Beautiful Bill,’ which prevented the planned rollback of key provisions from the 2017 Tax Cuts and Jobs Act and instead reset and expanded several tax breaks.
Among the most significant adjustments are higher standard deductions and newly calibrated tax brackets designed to better account for inflation.
How much money will taxpayers be subjected to?
Under the new law, the standard deduction for many taxpayers increased by roughly $750 to $1,500 per person, depending on filing status, compared with what it otherwise would have been if the 2017 tax provisions had expired. This higher deduction means taxpayers keep more of their income before it’s taxed.
In addition to larger deductions, the Internal Revenue Service (IRS) updated federal income tax brackets for 2026. These changes aim to combat “bracket creep,” a situation where inflation pushes taxpayers into higher tax brackets even though their real purchasing power hasn’t increased. That update allows workers to earn more income before moving into a higher tax rate, reducing the amount withheld from each paycheck throughout the year.
What are tax professionals saying?
Tax professionals have said that for many South Carolinians, the combined effect of higher deductions and adjusted brackets will result in slightly larger pay checks over the course of 2026, though the increase won’t be dramatic for everyone. For a typical worker earning around $50,000 annually, extra take-home pay could amount to roughly $200 to $300 more over the year, wbtv.com reported.
There are also benefits tailored for older taxpayers. Under the updated federal law, seniors aged 65 and older may be eligible for an additional deduction, which could be worth up to $6,000 depending on income and filing status. That provision is currently set to last through 2028.