On January 1, 2025, employers, accountants, payroll providers, and software developers should begin using the new SC withholding tables and formula.
The 2025 South Carolina withholding rate is 3% for yearly incomes between $3,560 and $17,830. The rate is 6.2% for yearly incomes $17,830 and above. Yearly amount per allowance is $4,860. Maximum standard deduction for one or more allowances is $7,300. Maximum yearly tax for the first bracket $428.10.
The state will also release a new W-4 for 2025.
Employees should check their withholding yearly or after experiencing major life events, such as getting married or divorced, accepting a new job or a raise, or welcoming a new child.
Employers must calculate taxable income for each employee. Then compute the amount of tax to be withheld using the Subtraction Method or the Addition Method.
South Carolina 2025 Withholding Example:
Step 1: Calculate Annual Gross Wages
- Weekly salary: $750.00
- Number of weeks in a year: 52
- Annual gross wages: $750.00/week * 52 weeks = $39,000.00
Step 2: Apply Personal Allowances
- Number of allowances: 3
- Value per allowance: $4,860.00
- Total personal allowances: 3 allowances * $4,860.00 = $14,580.00
- Adjusted income after allowances: $39,000.00 - $14,580.00 = $24,420.00
Step 3: Apply Standard Deduction
- Standard deduction rate: 10%
- Standard deduction amount: $39,000.00 * 10% = $3,900.00
- Adjusted income after standard deduction: $24,420.00 - $3,900.00 = $20,520.00
Step 4: Determine Taxable Income
- Taxable income: $20,520.00
Step 5: Calculate Withholding Tax
- Withholding tax on taxable income: $594.88
Step 6: Calculate Weekly Withholding Amount
- Annual withholding tax: $594.88
- Number of weeks in a year: 52
- Weekly withholding amount: $594.88 / 52 weeks = $11.44 per week for SC state taxPlease download the latest version of Payroll Mate 2025 to get the 2025 South Carolina withholding tables. Payroll Mate is desktop-based and in-house payroll software for US businesses and accounting firms.