South Carolina Workers to Receive Higher Paychecks in 2026 with Tax Reset

In 2026, workers in South Carolina can expect to see higher paychecks due to significant updates in tax legislation. These changes, rooted in federal tax modifications, are poised to impact many South Carolinians across the region.

New Tax Rules Under the “One Big Beautiful Bill”

A legislative measure, known commonly as the “One Big Beautiful Bill,” was passed by Congress in 2025. This act prevented a rollback of the 2017 Tax Cuts and Jobs Act, extending and enhancing crucial tax provisions. As a result, taxpayers may find more money in their pockets.

Impact of the 2017 Tax Cuts and Jobs Act

• The 2017 act nearly doubled the standard deduction.
• This deduction was set to expire in 2026, but Congress intervened.
• The new law not only extends these deductions but also raises them permanently.

According to Thomas Spade, an accounting professor at the College of Charleston, the standard deduction is increasing significantly. He noted it would likely rise by $750 to $1,500 per person. This adjustment can result in an extra $200 to $300 in annual take-home pay.

Updates to Tax Brackets

The Internal Revenue Service (IRS) has also revised federal income tax brackets for 2026. This amendment aims to counter inflation and prevent “bracket creep,” where raises might force workers into higher tax rates without a genuine increase in purchasing power.

For example, a single worker earning roughly $50,000 could retain an additional $200 to $300 yearly due to slower progression into higher tax brackets. Spade explains that the adjustments in brackets align with the enhanced deductions to lessen the inflation impact on numerous households.

Additional Benefits for Seniors

• Seniors aged 65 and older may qualify for an additional deduction up to $6,000.
• This provision is set to last through 2028, depending on income and filing status.

This temporary benefit provides an extra financial cushion for older taxpayers, particularly those living on fixed incomes.

Implementation in South Carolina

Since South Carolina aligns closely with federal tax regulations, employers statewide will adopt the new withholding tables in 2026. Consequently, workers will gradually notice these changes reflected in their paychecks over time.

Tax experts advise employees to examine their pay stubs routinely and consider making necessary adjustments to their withholding, especially those juggling multiple jobs or varied income sources.

Conclusion

While the updates may not seem dramatic, they hold significant implications for many low-income workers in South Carolina. Ultimately, these changes ensure that more money remains with taxpayers, enhancing overall financial stability.