New SC tax rules, liquor law changes & more: These new state laws will take effect in 2026

New year. New laws.

Beginning Jan. 1, South Carolina residents will see changes to laws regulating places that serve liquor and new income withholding tables to match federal changes.

Also in March, fines will be assessed for anyone found holding a cell phone while driving. That law was effective in September but brought only a warning.

Beginning in 2026, the liquor liability law now says that if the drunk driver and a bar are found liable in a collision, the bar is responsible for 50% of the plaintiff’s actual damages rather than fully responsible.

“These adjustments aim to balance accountability with fairness, particularly for small businesses that have struggled under the previous system,” the Floyd law firm said on its website.

All servers and managers must complete 4 hours of certified training of alcohol laws, liability and fake ID detection and pass a test within 60 days of employment.

The course also covers how to know if someone is intoxicated and how best to refuse to serve them.

Previously the state required a $1 million liquor liability policy, but now it can be reduced through specific credits, but coverage can never drop below $300,000, the Kenneth Berger law firm said.

Berger said college sports venues now require mandatory server training for all personnel, compliance checks during events, forensic ID systems and restrictions on alcohol sales in student sections. If the venue does not comply with the law it can lose its permit.

The Floyd law firm said one of the biggest changes affecting families is a change in federal tax rules that will bring associated changes in state law.

The standard deduction is increasing to $32,200 for married couples filing jointly and $16,100 for single filers. Heads of household will see their deduction rise to $24,150, the Floyd firm said.

“South Carolina will introduce updated state withholding tables beginning Jan. 1, 2026,” Floyd said. “Employers across the state must adopt the new tables at the start of the year to ensure the proper amount is withheld from employees’ paychecks.”

South Carolina joined 31 states in making it illegal to hold your cell phone, tablets or other electronic devices in your hand while driving.

Beginning in March, the following penalties are in place:

• 1st offense - $100 fine
• 2nd and subsequent offenses (within three years) - $200 fine and two points on the driving record

There are exceptions to the law, including when you are legally stopped, using a device in a hands-free mode or for audio content like maps and music.

You may also drive and hold your phone to report traffic accidents, hazardous conditions, or medical emergencies.

The Steinberg law firm in Charleston said people should invest in hands-free devices such as a Bluetooth earpiece, especially if your job requires you to handle phone calls while driving. A dashboard cell phone holder can make your device easier to see when using maps or other tools.

Also, you should set up GPS or map apps before you start the car.

Pull over if you need to make a call. And if your car offers phone software like Android Auto or Apple CarPlay use it.

This story was originally published December 20, 2025 at 6:00 AM with the headline "New SC tax rules, liquor law changes & more: These new state laws will take effect in 2026."