CHARLESTON, S.C. (WCSC) — As the new year begins, many South Carolinians may notice something different when they look at their paychecks.
New federal tax rules for 2026 are now in place, and because South Carolina’s tax system is tied closely to federal law, those changes are expected to affect workers across the Lowcountry.
The updates stem from federal action taken last year, when Congress narrowly approved legislation often referred to as the “One Big Beautiful Bill.” The bill prevented a major rollback of the 2017 tax law and instead reset and expanded key tax provisions, changes experts say could leave more money in taxpayers’ pockets.
The 2017 Tax Cuts and Jobs Act nearly doubled the standard deduction but was set to expire this year, which would have sent deductions back to much lower levels. Instead, Congress stepped in.
Tax experts say the new law didn’t just extend those deductions, it increased them and made many of the changes permanent.
“The standard deduction usually goes up each year due to inflation, but this increase is bigger than normal,” Thomas Spade, an accounting professor at the College of Charleston and local tax preparer, said. “This bill raised it by about $750 to $1,500 per person, which could mean an extra two to three hundred dollars in your pocket over the year.”
Spade says the change effectively hit the “reset button,” setting a higher baseline for future inflation adjustments instead of reverting back to 2017 levels.
In addition to higher deductions, the IRS also updated federal income tax brackets for 2026. The goal, the agency says, is to offset inflation and prevent what’s known as “bracket creep” — when raises push workers into higher tax rates even though their purchasing power hasn’t increased.
In addition to higher deductions, the IRS also updated federal income tax brackets for 2026.(LIVE 5 NEWS)
For many families, that means they can earn more money before moving into a higher tax bracket. A single worker earning around $50,000, for example, could see roughly $200 to $300 more in take-home pay over the year because they won’t hit a higher rate as quickly.
“These bracket changes work hand-in-hand with the higher deduction,” Spade said. “Together, they soften the impact of inflation for a lot of households.”
There’s also an added benefit for older taxpayers. Under the new law, seniors 65 and older may qualify for an additional deduction, up to $6,000, depending on income and filing status. That provision is temporary and currently set to last through 2028.
“It’s a little bonus on top of the broader changes,” Spade said. “For seniors on fixed incomes, it can make a noticeable difference.”
Because South Carolina conforms to many federal tax rules, employers across the state will begin using updated withholding tables in 2026. That means the changes could show up gradually in workers’ paychecks rather than all at once during tax season.
Tax professionals recommend employees take a closer look at their pay stubs in the coming months and consider adjusting their withholding if needed, especially those with multiple jobs or other sources of income.
For many Lowcountry workers, the changes won’t be dramatic, but experts say they are meaningful.
“In the long run, it just means more money stays with taxpayers,” Spade said.
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