South Carolina paychecks in 2026: what changed
South Carolina's 2026 withholding formula lowered the top withholding rate and raised the allowance and deduction. A new law also changed the rates for 2026 returns.
The changes
- New federal withholding tables. The IRS updated Publication 15-T for 2026, including changes from the 2025 tax law. The standard deduction is $16,100 single, $32,200 married filing jointly, and $24,150 head of household.
- Social Security wage base: $184,500 (up from $176,100). If you earn more, Social Security stops later in the year.
- Tips and overtime deductions for 2025–2028 — see below.
- Top withholding rate: 6% (was 6.2% in 2025).
- Allowance: $5,000 each (was $4,860).
- Standard deduction cap: $7,500 (was $7,300).
- Bracket lines: no withholding under $3,640 (was $3,560); the top rate starts at $18,230 (was $17,830).
- Rates for your 2026 return: a law signed March 30, 2026 set 1.99% under $30,000 and 5.21% minus $966 above. The withholding formula was not changed.
- Minimum wage: still $7.25, the federal rate, because South Carolina has no minimum wage law of its own.
Tips and overtime in 2026
New federal deductions apply for 2025 through 2028: up to $25,000 for qualified tips, and up to $12,500 ($25,000 for joint filers) for the extra "half" of time-and-a-half overtime. Both phase out above $150,000 of income ($300,000 joint).
These are deductions on your tax return. Your employer still takes Social Security and Medicare out of tips and overtime, and still withholds income tax unless you tell it otherwise. If you expect to claim them, you can put the expected amount in Step 4(b) of your W-4 (and in the Step 4(b) box above) so less income tax is withheld during the year.
Work out your 2026 South Carolina paycheck →
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Sources
- IRS Publication 15-T (2026), Federal Income Tax Withholding Methods — Worksheet 1A and the annual percentage-method tables
- IRS Publication 15 (2026), Employer's Tax Guide — Social Security and Medicare rates
- Social Security Administration — 2026 wage base of $184,500
- IRS — tips and overtime deductions
- SCDOR — WH-1603F, Formula for Computing SC Withholding Tax, 2026 (Rev. 11/4/25) — $5,000 per allowance; standard deduction 10% of wages up to $7,500, $0 with zero allowances; 0% / 3% − $109.20 / 6% − $656.10; worked example $750 weekly, 3 allowances → $10.58
- SCDOR — WH-1603, 2026 Withholding Tax Tables
- SCDOR — Withholding tables and formulas — 2026 tables, formula and SC W-4 listed; no mid-year revision as of the checked date
- SCDOR — South Carolina withholding tables updated for 2026 (November 6, 2025) — use the 2026 tables and 2026 SC W-4 from January 1, 2026
- SCDOR — WH-1603F, 2025 formula (Rev. 11/12/24) — $4,860 per allowance; standard deduction up to $7,300; 0% to $3,560, 3% to $17,830, 6.2% above
- SCDOR — SC W-4, 2026 (Rev. 12/5/25) — line 5 allowances; line 6 additional amount; line 7 exempt
- SCDOR — WH-105, South Carolina Withholding Tax Information Guide — withhold at zero allowances if no SC W-4 is provided
- SCDOR — Information about H. 4216 (April 15, 2026) — signed March 30, 2026; 2026 return rates 1.99% under $30,000 and 5.21% minus $966 from $30,000; SC Income Adjusted Deduction $15,000 / $22,500 / $30,000
- S.C. Department of Employment and Workforce — Paying your tax — UI tax on the first $14,000 of each worker's wages
- S.C. Workplace Laws: Notice to Employees — Unemployment Insurance (poster) — employees do not fund unemployment insurance through deductions from pay
- U.S. Department of Labor — State minimum wage laws (updated July 1, 2026) — South Carolina: no state minimum wage law; employers covered by the FLSA pay the federal $7.25
- U.S. Department of Labor — Minimum wages for tipped employees (updated July 1, 2026) — South Carolina: federal rules — $2.13 cash wage, $5.12 tip credit, more than $30 a month in tips
- U.S. Department of Labor — Overtime pay — time and one-half after 40 hours in a workweek
- S.C. Code Title 41, Chapter 10 — Payment of Wages — § 41-10-30 written notice at hiring of normal hours and wages, itemized statement of gross pay and deductions each pay period; § 41-10-50 final pay within 48 hours or next regular payday, not over 30 days; § 41-10-80 three times unpaid wages, three years
- S.C. Department of Labor, Licensing and Regulation — Office of Wages and Child Labor FAQ — final pay rule; no state requirement for breaks or lunch