The One Big Beautiful Bill Act included a slew of federal tax deductions that could have reduced South Carolina residents’ 2025 state income tax bills by an estimated $279 million.
That’s if the General Assembly allowed it.
But they have not and will not, lawmakers told The Post and Courier.
The state’s Republican majority in the Senate has declined to allow the tax cuts championed by President Donald Trump to apply to South Carolina income taxes.
That means new deductions — such as those for people 65 or older, or for tipped workers — can be used to reduce federal income tax bills for 2025, but not the amounts owed to the state.
Instead of conforming to the new federal tax rules, South Carolina legislators have focused on a plan to restructure state income tax rules starting in 2026, which the Senate approved Feb. 24.
The plan would cut the state’s tax rates while making more income taxable.
No new deductions for tips, overtime, auto loans, 65+ in SC
