South Carolina Lawmakers Propose Flat 3.99% Income Tax Rate

| , , ,


At a press conference on March 25, state legislative leadership including Speaker of the South Carolina House of Representatives Murrell Smith, Senate President Thomas Alexander, Senate Finance Chairman Harvey Peeler, House Ways and Means Chairman Bruce Bannister, and Americans for Tax Reform President Grover Norquist, joined Governor Henry McMaster to announce proposed state income tax reform legislation.

SCACPA members Doug Snyder, CPA, and Ken Newhouse, CPA, along with SCACPA CEO Chris Jenkins, were in attendance.

The proposed legislation would bring South Carolina’s income tax rate to 3.99% under a flat tax system. Rep. Bruce Bannister, chair of the House Ways and Means Committee, introduced the bill to simplify the South Carolina tax code.

Currently, South Carolina’s state income tax is 6.2 percent. The new bill will collapse the state’s two-tier tax system and replace it with a flat tax rate of 3.99 percent (lower than neighboring states, Georgia and North Carolina). The aim is to attract businesses and residents by creating a more favorable tax environment.

Governor McMaster said he expects the bill on his desk before the end of the legislative session.

This story is developing, and we will continue to update and report as we learn more.

Watch the Full Press Conference

Career Opportunity: Assistant Finance Director – The Town of Hilton Head Island

Hilton Head Island, SC (pop. 38,097) The Town of Hilton Head Island, one of the most visited tourist destinations in the region, is seeking a confident and collaborative financial leader, ...
READ MORE

Genuine Learning Blog: Exposure Draft SSAE Section 210

On February 25, 2025, the AICPA issued Proposed SSAE: Scope Limitations in a Review Engagement. This exposure draft ...
READ MORE

IRS’ Plan to Revise R&D Credit Form 6765 Appears Imminent

Author: Michael Krajcer, JD, CPA, President, and Margaret Krajcer, JD, Vice President and General Counsel of Tax Credits Group This article originally appeared in the Winter 2025 issue of the South Carolina ...
READ MORE