A new $14 billion state budget is waiting to be approved in South Carolina.
The new budget includes $1 billion for tax rebates.
When does the new budget take effect?
South Carolina’s new budget will go into effect July 1, 2022. It will immediately cut the top income tax rate from 7% to 6.5% and plan to gradually lower it to 6% over five years.
More than 300,000 residents between the 6% and 3% tax brackets will also see tax breaks. Anyone below the thresholds will not have to pay tax at all.
How much is the rebate?
The rebate is worth up to $800 per taxpayer. All South Carolina residents who file income tax returns should get an $800 rebate in 2022.
2.5 million residents in South Carolina file their state tax returns, around 44% pay nothing in income taxes. If you don’t pay income taxes, you aren’t eligible for the rebate payment.
If the budget passes, checks will be sent out in November or December.
What else is in the budget?
Workers in South Carolina will also benefit from more than just the rebate.
The minimum salary for teachers will be raised from $36,000 to $40,000. Others who work for the sate will get a 3% raise in their salary and a $1,500bonus.
The budget also grants state colleges come money if they freeze tuition and creates a $1 billion reserve if the economy begins to fall.
The next step for approval is Governor Henry McMaster’s signature– but it remains unclear if he will sign it or not.