Most South Carolina workers could see more money in their paychecks next year, here’s why
COLUMBIA, S.C. (WMBF) – Most South Carolina workers may see more money in their paychecks next year.
It’s because less state taxes will be withheld from their paychecks because of adjustments made to the state Withholding Tax Tables by the South Carolina Department of Revenue.
Earlier this year, legislators voted to reduce the top income tax rate from 7% to 6.5%. In November, the SCDOR updated its Withholding Tax Tables for 2023, taking the tax cut into account. These tables are used by employers to determine how much South Carolina Income Tax is to be taken out of a worker’s paycheck.
The size of the change will depend on a variety of factors, including how much each worker makes and how often they are paid. Also, the withholding adjustments only impact state income taxes, not federal, local or other state taxes.
The SCDOR provided an example of someone who makes an annual salary of $39,000 and takes three allowances. Using 2022 tax rates and Withholding tables, this taxpayer would have $1,378.86 in Withholding. But using 2023 tax rates and Withholding tables, the Withholding table would be $757.35, which equals an additional $621.51 total in their paychecks throughout the year.
Taxpayers should see the impact of the new Withholding Tax tables when they receive their paychecks starting Jan. 1, 2023, and when they file their 2023 Individual Income Tax returns in 2024.
CLICK HERE to view the 2022 and 2023 SC Withholding Tax Formulas.
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