The bill H. 4458 proposes an amendment to Section 12-6-510 of the South Carolina Code of Laws, which pertains to the individual income tax. The primary change is the reduction of the top marginal income tax rate from its current level to five percent. The bill outlines a phased approach for this reduction, starting with a top marginal rate of 6.5% for Tax Year 2022, which will decrease by one-tenth of one percent each year until it reaches 6%, contingent upon projected increases in general fund revenues of at least five percent for the upcoming fiscal year.

Additionally, the bill specifies that the income brackets for the reduced top marginal rate will align with those of the current top marginal rate until the full reduction is implemented. It also ensures that all reductions are permanent and cumulative, while maintaining the requirement for the Department of Revenue to adjust the income brackets as necessary. The act will take effect upon approval by the Governor.

Statutes affected:
04/30/2025: 12-6-510
Latest Version: 12-6-510