Self-employed in South Carolina: taxes and retirement for 2026
What consultants, freelancers, content creators, entrepreneurs, gig workers, tipped workers and tradespeople in South Carolina need to know this year: South Carolina income and estimated tax rules, and how to save for retirement without an employer plan.
Guides for South Carolina
South Carolina rules that apply
- State income tax (2026)
- South Carolina has a graduated state income tax for 2026: 1.99% to 5.21% (top rate starts at $30,000 for single filers). H. 4216 (signed March 30, 2026) applies from tax year 2026. Income under $30,000 is taxed at 1.99%; income of $30,000 and up is taxed at 5.21% minus $966, which works out to 5.21% on income above $30,000. It replaces the federal standard deduction with a South Carolina Income Adjusted Deduction ($15,000 single) and caps the state EITC at $200. The top rate can drop further if revenue growth triggers are met.
- State estimated tax
- You must file a declaration of estimated tax if you expect to owe $100 or more in income tax when you file your return. Same dates as federal (April 15, 2026; June 15, 2026; September 15, 2026; January 15, 2027) Form SC1040ES.
- Minimum wage (2026)
- Federal $7.25 an hour; tipped cash wage $2.13 an hour. South Carolina has no state minimum wage law; the federal $7.25 minimum and $2.13 tipped cash wage apply.
- Common-law test for unemployment insurance (S.C. Code § 41-27-230)
- For unemployment insurance, a worker counts as an employee if they are one under the usual common-law rules on employer control. Certain agent-drivers and traveling salespeople are also covered.
Questions
Do self-employed people in South Carolina pay state income tax?
South Carolina has a graduated state income tax for 2026: 1.99% to 5.21% (top rate starts at $30,000 for single filers). H. 4216 (signed March 30, 2026) applies from tax year 2026. Income under $30,000 is taxed at 1.99%; income of $30,000 and up is taxed at 5.21% minus $966, which works out to 5.21% on income above $30,000. It replaces the federal standard deduction with a South Carolina Income Adjusted Deduction ($15,000 single) and caps the state EITC at $200. The top rate can drop further if revenue growth triggers are met.
When are South Carolina estimated tax payments due for 2026?
You must file a declaration of estimated tax if you expect to owe $100 or more in income tax when you file your return. Same dates as federal (April 15, 2026; June 15, 2026; September 15, 2026; January 15, 2027) The state form is SC1040ES.
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- dor.sc.gov/news/information-about-h-4216
- dor.sc.gov/sites/dor/files/forms/SC1040ES_2026.pdf
- www.dol.gov/agencies/whd/state/minimum-wage/tipped
- www.scstatehouse.gov/code/t41c027.php
Facts researched from official sources and independently re-checked; last verified October 2026, next scheduled review 2027-01-02. Educational information for 2026, not tax, legal or investment advice. Rules change; check the official sources listed and a tax professional for your situation. Gigaverse AI, Inc. is a financial technology company, not a bank, and not itself a registered investment adviser or broker-dealer.