Tax reform bill sets South Carolina on bold new path
Our SC House of Representatives passed a landmark income tax reform bill last month that would set our state on a bold new economic path.
This proposed legislation, which must now get final Senate approval, will simplify our state tax code and lower the burden on hardworking South Carolinians, retirees, and investors.
Starting in 2026, it replaces our current multi-bracket income tax system with a single flat rate of 3.99%. The legislation plans to reduce that rate even further, eventually reaching 2.49% as economic conditions are met, which would be the lowest rate in the USA. Already, it makes South Carolina more competitive than North Carolina (4.25%) and Georgia (5.39%).
This historic reform represents more than just a policy change. It reflects our House Republican Caucus’s commitment to keeping South Carolina competitive, attractive, and financially sound for years to come.
I believe this will be especially welcome news for the many residents of Southern Beaufort County who live on retirement income, investments, or managed financial assets. Also included in its key exemptions is retaining the $9,000 deduction for taxpayers who file as head of a household and a $12,000 deduction for those who file as married filing jointly or as a surviving spouse.
A flat tax system brings clarity and predictability. Whether you are budgeting retirement withdrawals or managing capital gains, knowing that your income will be taxed at one low rate makes planning easier and more reliable. Unlike systems where success is penalized with higher rates, a flat tax system respects personal responsibility and rewards thoughtful financial planning.
Spurs Economic Growth
There are also positive implications for our statewide economy. It has been proven elsewhere that lowering a state’s income tax rate is an effective strategy for attracting business investment, new residents, and job creators.
South Carolina is already admired for its climate, culture, and quality of life. With this proposed tax reform, we send a clear message to those wanting to invest here that we are likewise serious about economic growth and fiscal responsibility.
Our Lowcountry region, in particular, stands to benefit from a more competitive statewide tax structure. I’m confident this tax structure will encourage entrepreneurs and companies to expand here. As we have already witnessed, recently arriving residents from high-tax states in the Northeast, Midwest, and California are bringing more revenue into our communities. This proposed tax reform will only strengthen that trend, but I’m confident it will help sustain property values and support local businesses.
Why the Reform Matters
This is a long-term investment in the kind of South Carolina our current state legislative leadership wants to leave to the next generation — a state where opportunity is rewarded, freedom is respected, and growth is fueled by sound policy, not bureaucracy. I believe this reform will improve the quality of life for current residents while opening the door to new opportunities for our children and grandchildren.
Let’s continue working together to build a future where prosperity is shared, values are honored, and South Carolina leads by example.
Jeff Bradley is the representative for District 123 in the State House of Representatives.
