Has South Carolina adopted the federal tips deduction?

Not as of SCDOR’s March 2026 statement. Check SCDOR for later legislation before you file.

South Carolina · SC1040

South Carolina: filing extended while conformity waited

South Carolina had not adopted the 2025 federal law when filing season opened, so SCDOR pushed the filing date to October and told preparers to adjust returns.

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South Carolina · SC1040

Top rate, 2025

IRC conformity: Through December 31, 2024
Filing deadline: October 15, 2026
Payment deadline: April 15, 2026

Applies: Tax year 2025From IRS.gov · checked October 10, 2026

Rate and conformity

A budget proviso set the top rate at 6% for 2025. Act 63 conforms South Carolina to the Code as amended through December 31, 2024.

SCDOR says South Carolina specifically does not adopt the 2025 changes to section 168(k) bonus depreciation. For the other federal changes, including section 174A, section 179, tips, overtime, the senior deduction and car loan interest, it says the state had not yet considered them, and taxpayers claiming them must adjust the SC return until the legislature acts.

Extension

On March 26, 2026 SCDOR extended the filing deadline for all 2025 individual returns to October 15, 2026, while House Bill 3368 on conformity was pending. Payment was still due April 15, 2026.

Teacher supplies refundable credit for 2025: the lesser of $400 or the amount spent.

FAQ

Frequently asked questions

Has South Carolina adopted the federal tips deduction?: Not as of SCDOR’s March 2026 statement. Check SCDOR for later legislation before you file.

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Sources

General information for tax professionals, not advice on a specific return. Figures are from IRS.gov on the date shown; check the current IRS instructions before filing.

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