SC withholding tax tables adjusted for tax cuts
CHARLESTON, S.C. (WCSC) - Most South Carolinians will see fewer state taxes withheld from their paychecks in 2023.
The state’s Department of Revenue made the adjustments as a result of the tax cuts made by state lawmakers in the summer.
The cuts dropped the state’s top income tax rate from 7% to 6.5% beginning in 2023. The agency said the top rate could be further reduced in the future based on certain general fund tests being met.
For example, if someone makes $39,000 a year – using the old withholding rate they would give up $1,378.86. But using the new 2023 tax rates, the withholding would be $757.35, which puts an additional $621.51 total in their paychecks throughout the year.
“That obviously is unique for every single worker every single taxpayer. It depends on obviously, your salary, how often you get paid how many allowances you claim, so it is unique for every worker, every taxpayer, but generally, most South Carolinians should see more money in their paycheck starting on January 1,” Rob Walden, with SCDOR, says.
SCDOR updated the tax tables for 2023 after taking the tax cuts into account. The tables are used by employers to determine the amount of state income tax is taken out of workers’ paychecks.
The new tax tables take effect on Jan. 1, 2023.
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