South Carolina 1099 taxes: a 2026 guide for the self-employed
Keeper StaffKeeper is a delightfully smart tax filing software that's especially useful for people with 1099 contracting and freelance income. Our blog breaks down IRS guidance with real-world examples and analysis by tax professionals — empowering taxpayers to save money and take control of their finances.
Krislyn ChanKrislyn Chan is a consumer subscription growth leader who has spent her career making premium services affordable and accessible. As Chief Growth Officer at Keeper, she drives growth for a platform that pairs AI with licensed tax professionals to help self-employed people keep more of what they earn. She has written more than 50 Keeper guides on tax strategy for freelancers, independent contractors, and small business owners. Previously, Krislyn was at Curology, where she helped turn dermatologist-grade custom skincare into a direct-to-consumer subscription used by millions.
Key takeaways
- 1099 income in South Carolina is subject to three taxes: 15.3% federal self-employment tax, 10% to 37% federal income tax, and South Carolina income tax of 1.99% to 5.21%.
- Set aside 25–30% of your profit in a high-yield savings account, so the money earns interest until your tax payments are due. For a single filer with no other income, total tax runs from 19.7% of profit at $40,000 to 31.1% at $200,000.
- South Carolina rewrote its income tax for 2026. Two rates (1.99% and 5.21%) replace the old 0%, 3%, and 6%, and a new South Carolina deduction replaces the federal standard deduction.
- The new deduction shrinks as you earn more. It’s $15,000 ($30,000 married filing jointly) but phases out between $40,000 and $95,000 of income ($80,000 to $190,000 married).
- South Carolina estimated payments start at $100. If you expect to owe $100 or more, make quarterly estimated tax payments, due April 15, June 15, and September 15, 2026, and January 15, 2027.
How much tax do 1099 workers pay in South Carolina?
These tables show estimated 2026 tax on self-employment profit, the amount left after business expenses. They assume this is your only income, you take the standard deduction, and you have no kids or tax credits.
Single filer, 2026
| 1099 profit | Total tax | % of profit | Self-employment tax | Federal income tax | South Carolina income tax |
|---|---|---|---|---|---|
| $40,000 | $7,868 | 19.7% | $5,652 | $1,775 | $441 |
| $60,000 | $13,419 | 22.4% | $8,478 | $3,559 | $1,382 |
| $80,000 | $19,262 | 24.1% | $11,304 | $5,344 | $2,614 |
| $100,000 | $26,211 | 26.2% | $14,130 | $8,235 | $3,847 |
| $150,000 | $43,905 | 29.3% | $21,194 | $16,413 | $6,297 |
| $200,000 | $62,149 | 31.1% | $28,234 | $25,196 | $8,718 |
Married filing jointly, one self-employed spouse, 2026
| 1099 profit | Total tax | % of profit | Self-employment tax | Federal income tax | South Carolina income tax |
|---|---|---|---|---|---|
| $40,000 | $6,193 | 15.5% | $5,652 | $398 | $143 |
| $60,000 | $10,875 | 18.1% | $8,478 | $1,885 | $513 |
| $80,000 | $16,198 | 20.2% | $11,304 | $3,550 | $1,345 |
| $100,000 | $21,961 | 22.0% | $14,130 | $5,335 | $2,497 |
| $150,000 | $36,568 | 24.4% | $21,194 | $9,795 | $5,578 |
| $200,000 | $53,366 | 26.7% | $28,234 | $16,472 | $8,660 |
How South Carolina taxes 1099 income
If you’re a freelancer, independent contractor, gig worker, or solo business owner in South Carolina, your net profit (1099 income minus business expenses) is taxed three ways:
- Federal self-employment tax: 15.3% on most of your profit (92.35% of it). That’s 12.4% for Social Security, on earnings up to $184,500 in 2026, plus 2.9% for Medicare with no cap. It replaces the payroll taxes an employer would split with you. Estimate it with the self-employment tax calculator.
- Federal income tax: 10% to 37% on what’s left after three deductions: the $16,100 standard deduction ($32,200 married filing jointly), half of your self-employment tax, and the 20% QBI deduction.
- South Carolina income tax: 1.99% to 5.21% on your profit minus half of your self-employment tax and the new South Carolina Income Adjusted Deduction. You report it on Form SC1040.
What changed in South Carolina for 2026
- Two rates instead of three. South Carolina now taxes the first $30,000 of taxable income at 1.99% and the rest at 5.21%, down from a top rate of 6%. The top rate can fall further in years when state revenue grows enough.
- A new deduction instead of the federal one. The South Carolina Income Adjusted Deduction is $15,000 ($22,500 head of household, $30,000 married filing jointly). It shrinks steadily once your income passes $40,000 and is gone at $95,000 ($80,000 to $190,000 married filing jointly). At $80,000 of profit, you get $5,632.
- It starts from your federal adjusted gross income now, not your federal taxable income. That means no QBI deduction: at $80,000 of profit, that’s $11,650 you deduct on your federal return but still pay South Carolina tax on.
- Some federal deductions carry over. Because South Carolina starts with the income on your federal return, three deductions you take there also lower your South Carolina tax: half of your self-employment tax, self-employed health insurance premiums, and self-employed 401(k) contributions.
- No local income tax. South Carolina cities and counties don’t tax income.
A self-employed person in South Carolina at $80,000 pays $19,262, about the same as in California and $2,614 more than in Texas, which has no income tax.
Example: South Carolina tax on $80,000 of 1099 income
Here’s the math for a single self-employed person in Charleston with $80,000 of profit and no other income.
| Step | Amount |
|---|---|
| Self-employment tax: $80,000 × 92.35% × 15.3% | $11,304 |
| $80,000 minus half of self-employment tax | $74,348 |
| Income the IRS taxes: $74,348 minus the $16,100 standard deduction and $11,650 QBI deduction | $46,599 |
| Federal income tax | $5,344 |
| Income South Carolina taxes: $74,348 minus a $5,632 South Carolina deduction (partly phased out) | $68,716 |
| South Carolina income tax: 1.99% on $30,000, 5.21% on the rest | $2,614 |
| Total 2026 tax | $19,262 (24.1%) |
Self-employment tax is the biggest piece. Every dollar you write off as a business expense lowers all three taxes, since your self-employment tax, federal income tax, and South Carolina income tax are all based on your profit after expenses.
What tax write-offs can I claim?
How to lower your South Carolina 1099 tax bill
At $80,000 of profit, every $1,000 of business expenses you deduct cuts about $292 from your total tax. Common write-offs for self-employed people in South Carolina include:
- Your phone and internet, for the share you use for work
- Car expenses, using a set rate per mile or your actual costs (compare the two)
- A home office, if you use part of your home regularly and only for work (estimate yours)
- Software, equipment, and supplies you buy for your business
- Health insurance premiums you pay as a self-employed person
- Retirement contributions to a SEP-IRA or Solo 401(k)
Most of these are small purchases spread across a year of bank and card statements, which is where they get missed. See the full list of tax write-offs for self-employed people.
Track and claim every eligible deduction with Keeper
Keeper scans your accounts for write-offs and files your return — with tax pros reviewing every one.
Try it freeSouth Carolina estimated tax payments
If you expect to owe $100 or more in South Carolina tax for 2026 when you file, make estimated payments to the South Carolina Department of Revenue online or with Form SC1040ES. They’re due on the same dates as your federal payments, and each is a quarter of your South Carolina tax:
| Payment | Share of your South Carolina tax | Due date |
|---|---|---|
| 1st | 25% | April 15, 2026 |
| 2nd | 25% | June 15, 2026 |
| 3rd | 25% | September 15, 2026 |
| 4th | 25% | January 15, 2027 |
- Federal payments are separate: you pay the IRS on the same four dates with Form 1040-ES.
- To avoid a penalty for paying too little, pay at least 90% of this year’s South Carolina tax or 100% of last year’s, whichever is less. If your 2025 income was over $150,000, use 110% of last year’s tax instead.
- Plan around the new law. With lower rates in 2026, paying 100% of your 2025 tax may cover more than you’ll actually owe, so the 90% option is often the cheaper target.
Get your payment amounts with the South Carolina quarterly tax calculator.
Should you form an LLC or S corp in South Carolina?
You don’t need one to work as an independent contractor. If you work for yourself without forming a business, you report 1099 income on Schedule C, part of your regular tax return, and pay the taxes above.
- LLCs cost $110 to form, and South Carolina doesn’t require an annual report for a standard LLC.
- S corps can make sense once your profit is around $80,000, when the self-employment tax savings get significant. You pay yourself a reasonable salary and take the rest as profit payouts (distributions) that aren’t subject to self-employment tax. South Carolina S corps pay a small annual license fee, at least $25.
Run the numbers for your income to see what you’d save.
Do self-employed people in South Carolina charge sales tax?
Usually not. Most professional services, like writing, design, consulting, and bookkeeping, aren’t taxable in South Carolina. Physical goods are, at a 6% state rate plus local taxes.
7 sources
- Information about H. 4216 (SCDOR) · dor.sc.gov
- Governor McMaster signs income tax bill into law · governor.sc.gov
- South Carolina 2026 tax changes (H.4216 / Act 110) (PolicyEngine) · policyengine.org
- 2026 SC1040ES: estimated tax · dor.sc.gov
- SC2210: underpayment of estimated tax · dor.sc.gov
- IRS releases tax inflation adjustments for tax year 2026 · irs.gov
- Contribution and benefit base · ssa.gov
This article is for informational purposes only and isn’t tax, legal, or financial advice. Tax rules change and depend on your situation, so talk to a tax professional about yours.
