Quick answer
A single freelancer in South Carolina with $75,000 of profit pays about $2,306 of South Carolina income tax in 2026 on top of about $15,495 of federal tax (self-employment tax of 15.3% on 92.35% of profit plus income tax), keeping about $57,199. At $50,000 the state bill is about $765; at $100,000, about $3,846.
South Carolina rewrote its individual income tax for 2026. The state now starts from federal adjusted gross income instead of federal taxable income, and it swaps the federal standard deduction for a new deduction of its own that shrinks as income rises. Here is what a South Carolina freelancer owes under the new rules.
How South Carolina compares: in our 50-state take-home pay ranking, a single freelancer with $75,000 of profit keeps $57,199 in South Carolina after federal and state income tax, 28th of 51 (state income tax: $2,306).
Set aside from every payment
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That is $0 of every $1,000 you receive
- Federal income tax share
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- Self-employment tax share
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- State tax share
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- Total to save this year
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Estimate for information only — not tax, legal or financial advice. Federal figures for tax year 2026; state and local taxes are not included unless you enter them. Check your situation with a CPA or enrolled agent.
What you pay on freelance profit
| Tax | Rate |
|---|---|
| Federal self-employment tax | 15.3% on 92.35% of profit (12.4% part capped at $184,500 for 2026) |
| Federal income tax | 10%–37% |
| South Carolina income tax | 1.99% on taxable income under $30,000; at $30,000 or more, 5.21% of taxable income minus $966 |
What changed for 2026
Act 110 of 2026 (H.4216), signed March 30, 2026, applies to tax years beginning after December 31, 2025. The SC Department of Revenue explains it in Information Letter #26-20. The main changes:
- New starting point. Your South Carolina calculation now begins with federal AGI. The federal standard deduction, itemized deductions and the federal QBI deduction no longer reduce South Carolina income. Schedule C expenses and the deduction for half of your self-employment tax still do, because they come before AGI.
- A new deduction. The South Carolina Income Adjusted Deduction (SCIAD) is $15,000 for single filers with AGI up to $40,000. Between $40,001 and $94,999 it drops by the fraction (AGI − $40,000) ÷ $55,000, with the reduction rounded down to the next $10. At $95,000 of AGI or more it is $0. Heads of household start at $22,500 and married couples filing jointly at $30,000, each with its own phase-out range.
- Two brackets. The old three-bracket schedule with a 6% top rate is replaced by 1.99% and 5.21%. Starting in 2027, the 5.21% rate can fall further if state revenue grows enough.
- Smaller EITC. The South Carolina earned income credit is capped at $200.
The SCIAD phase-out has a side effect. Between $40,000 and $95,000 of AGI, each extra dollar of profit costs you 5.21% and also shrinks your deduction, so the real state cost of that dollar is about 6.6%.
Estimated payments
File SC1040ES estimated payments if you expect to owe $100 or more when you file your South Carolina return. Due dates match the IRS: April 15, June 15 and September 15, 2026, and January 15, 2027. You can skip the January payment if you file your 2026 SC1040 by February 1, 2027 and pay the full balance. Paying 100% of last year’s South Carolina tax generally avoids the underpayment penalty (110% if your prior-year AGI was over $150,000). Pay online through MyDORWAY.
Note that the 2026 SC1040ES worksheet was printed before Act 110. It still starts from federal taxable income and shows the old rates, and SCDOR has told filers to read Information Letter #26-20 before figuring their payments. Size your federal payments with the quarterly estimated tax calculator, then add one quarter of your expected South Carolina tax to each date.
If you have an LLC
- According to SCDOR, an LLC that isn’t taxed as a corporation doesn’t file a South Carolina annual report or pay the corporate license fee. A single-member LLC reports its profit on the owner’s SC1040.
- An LLC that elects to be taxed as a corporation, including as an S corp, files the SC1120 or SC1120S and pays the annual license fee (minimum $25).
- Many South Carolina cities and counties charge a business license tax based on your gross income. Check with your city or county for the rate and renewal date.
How much to set aside
Enter 5.21 in the state field of the tax set-aside calculator. For most freelancers that overstates the total bill, because the 1.99% bracket and the SCIAD cover the first slice of income. It’s still a sensible cushion, since extra profit in the phase-out range costs closer to 6.6%.
Sales tax
South Carolina sales tax applies to goods and a short list of specific services, such as communications, laundry, accommodations and electricity. Most freelance and professional services are not on that list. If you sell taxable goods, you need a $50 retail license from SCDOR.
Frequently asked questions
What is South Carolina's income tax rate for 2026?
1.99% on taxable income under $30,000; at $30,000 or more, 5.21% of taxable income minus $966. Act 110 of 2026 replaced the old three-bracket schedule with its 6% top rate.
What is the South Carolina Income Adjusted Deduction?
It's the new SCIAD replacing the federal standard deduction for 2026. Single filers get $15,000 with AGI up to $40,000; it phases down between $40,001 and $94,999 and is $0 at $95,000 or more. In that range, each extra dollar costs about 6.6%.
When are South Carolina estimated tax payments due?
April 15, June 15 and September 15, 2026, and January 15, 2027, using SC1040ES if you expect to owe $100 or more. You can skip January if you file by February 1, 2027, and pay in full. The worksheet predates Act 110, so check Information Letter #26-20.
Do South Carolina LLCs file an annual report?
Not if the LLC isn't taxed as a corporation. According to SCDOR, such an LLC files no annual report and pays no corporate license fee. An LLC taxed as a corporation, including an S corp, pays the annual license fee, minimum $25.