💼 South Carolina Self-Employment Tax Calculator
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South Carolina's New Income Tax, Explained for Freelancers
What Act 110 changed
Governor McMaster signed House Bill 4216 on March 30, 2026, and it applies to the whole 2026 tax year. Three things changed at once.
The return now starts from federal adjusted gross income, not federal taxable income, so your federal standard or itemized deduction no longer carries over. In its place is the South Carolina Income Adjusted Deduction: $15,000 for single filers, $22,500 for heads of household and $30,000 for joint filers. And the rates are now 1.99% on taxable income under $30,000 and 5.21% above it. The old top rate was 6%.
The deduction fades between $40,000 and $95,000
The new deduction is not flat. For a single filer it starts shrinking once federal AGI passes $40,000 and reaches zero at $95,000. For joint filers the range is $80,000 to $190,000. A single freelancer with $75,000 of net profit has an AGI of about $69,700 and keeps $6,900 of the $15,000.
The side effect is a higher marginal rate inside that band. Each extra dollar of income is taxed at 5.21% and also removes about 27 cents of deduction, which adds roughly 1.4 points. The real rate on your next dollar is about 6.6% until the deduction is gone. Then it drops back to 5.21%.
Is it a tax cut for you?
For most freelancers, yes. At $75,000 of net profit the 2026 bill is $2,306, against about $3,025 under the schedule in force when the year began. At $50,000 the bill is roughly half what it was, and at $150,000 the saving is about $900. If you made estimated payments early in 2026 using the old rates, you have paid in more than you needed to.
The 3% rate on business income
South Carolina has long let owners of pass-through businesses, sole proprietors included, elect a flat 3% rate on "active trade or business income" using Form I-335. Income that is payment for your own personal services does not qualify, which rules out most of a solo freelancer's profit. A safe harbor lets you treat half of it as business income when your South Carolina pass-through income is $100,000 or less.
Act 110 did not repeal the election. With the first $30,000 now taxed at 1.99%, it only helps on income that would otherwise fall in the 5.21% bracket.
The calculator does not apply the 3% election. The Department of Revenue had not published the 2026 version of Form I-335 when this page was last reviewed. Confirm how it interacts with the new rates before relying on it.
South Carolina Income Tax Brackets and Deductions for 2026
| Rate | Taxable income, all filers |
|---|---|
| 1.99% | $0 – $30,000 |
| 5.21% | Over $30,000 |
| Before and after the brackets | Single | Married filing jointly |
|---|---|---|
| Standard deduction | $15,000 | $30,000 |
| Standard deduction starts to phase out above | $40,000 | $80,000 |
South Carolina by the Numbers
South Carolina is one of five states that cut 2026 income tax rates after the year began. The guide to the mid-year cuts lists all five and what to do about estimated payments made at the old rate.
At $75,000 net profit, South Carolina ranks #25 of 51 jurisdictions for total 1099 tax burden (rank 1 = lowest). A single freelancer pays $2,306 in state tax on top of $17,101 federal, $19,407 in total, a 25.9% effective rate.
What a single freelancer pays in South Carolina (2026)
| Net profit | South Carolina state tax | Total tax (SE + federal + state) | Take-home | Effective rate |
|---|---|---|---|---|
| $50,000 | $765 | $11,226 | $38,774 | 22.5% |
| $75,000 | $2,306 | $19,407 | $55,593 | 25.9% |
| $100,000 | $3,847 | $29,592 | $70,408 | 29.6% |
| $150,000 | $6,297 | $49,682 | $100,318 | 33.1% |
Single filer, standard deduction, no QBI or other deductions. Computed with the same 2026 engine as the calculator.
How South Carolina compares to its neighbors at $75,000
| State | State tax | Total tax | vs South Carolina |
|---|---|---|---|
| North Carolina | $2,272 | $19,374 | $34 less |
| Georgia | $2,730 | $19,831 | $424 more |
Sources: IRS Rev. Proc. 2025-32 (federal brackets and standard deduction), SSA 2026 wage base ($184,500), South Carolina Department of Revenue: Information about H. 4216, South Carolina General Assembly: H. 4216, and the Tax Foundation's 2026 state income tax table. Last updated October 7, 2026.
South Carolina Freelancer FAQ
What are South Carolina's income tax rates for 2026?
1.99% on taxable income under $30,000 and 5.21% on taxable income of $30,000 or more. House Bill 4216 (Act 110), signed March 30, 2026, replaced the previous 0%, 3% and 6% brackets for the whole 2026 tax year.
What is the South Carolina Income Adjusted Deduction?
It replaces the federal standard deduction on the South Carolina return: $15,000 for single filers, $22,500 for heads of household and $30,000 for joint filers. It phases out between $40,000 and $95,000 of federal AGI for single filers and between $80,000 and $190,000 for joint filers.
Does South Carolina still use the federal standard deduction?
No. From 2026 the return starts from federal adjusted gross income, so the federal standard and itemized deductions no longer carry over.
Does South Carolina have local income taxes?
No. No South Carolina city or county levies an income tax.
📐 How these South Carolina numbers are produced
The calculator and every table on this page run the same engine: 2026 federal brackets and standard deduction, and self-employment tax at 15.3% on 92.35% of net profit. South Carolina's own 2026 brackets, deductions, exemptions and credits are applied on top, as shown step by step in the calculator. When a legislature changes a rate during the year, the engine is updated and the change is recorded on the methodology and changelog page.
- Federal brackets & standard deduction: IRS Rev. Proc. 2025-32 (2026)
- Self-employment tax: 15.3% with the 92.35% net-earnings adjustment, the 50% SE-tax deduction, and the 0.9% Additional Medicare Tax, per IRS rules
- Social Security wage base: $184,500 for 2026 (SSA)
- South Carolina figures: South Carolina Department of Revenue: Information about H. 4216, South Carolina General Assembly: H. 4216, cross-checked against the Tax Foundation's 2026 table
Built & maintained by Rahul B.
A software developer who got tired of “free” 1099 calculators that use lazy flat rates and give wrong numbers — so I built one on the actual 2026 IRS brackets and real state-by-state rates, updated every tax year. More about this tool →
Last reviewed for tax year 2026 · Independent tool — not affiliated with the IRS. Estimates for planning only; verify with a tax professional before filing.