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 to 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 subsequent year until it reaches 6%, contingent upon a projected increase of at least five percent in general fund revenues for the upcoming fiscal year.

Additionally, the bill specifies that the income brackets for the reduced top marginal rate will remain aligned with those of the current top marginal rate until the full phase-in is complete. It also mandates that the Department of Revenue will continue to adjust the income brackets as necessary. The act is set to take effect upon approval by the Governor.

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