StateSide

SC · payroll profile

South Carolina

Everything an out-of-state employer needs before running a South Carolina payroll: what to withhold, which form the employee signs, whether reciprocity applies, and who to register with.

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Personal income tax
Graduated to 6%
Reciprocal agreements
None
SUI wage base 2026
$14,000
Local income taxes
No

Income tax withholding

Imposes wage income tax Yes
Rate structure Graduated, top marginal rate 6%
Withholding certificate SC W-4
South Carolina Employee's Withholding Allowance Certificate
Accepts federal Form W-4 No
Convenience-of-the-employer rule No
Nonresident withholding threshold $800 of in-state wages
COST's multistate chart reports an $800-per-calendar-year South Carolina wage threshold for nonresident employee withholding. The SCDOR Withholding Tax Information Guide (WH-105) as fetched did not state this figure -- treat as unconfirmed and verify with SCDOR before relying on it.
Local income taxes No
No local personal income or wage taxes in South Carolina.

Reciprocity

States that exempt South Carolina residents

A South Carolina resident working in these states files that state's certificate and is taxed only by South Carolina.

District of Columbia

Unemployment insurance and paid leave

Taxable wage base 2026 $14,000
2025 base was $14,000.
New employer rate 1%
Rates exclude the separate Departmental Administrative Contingency Assessment (DACA).
Experience rate range 0% – 5.4%
Experience-rating method benefit ratio
Employee UI contribution No
Paid family / medical leave No

Employer registration

Tax agency
South Carolina Department of Revenue
UI agency
South Carolina Department of Employment and Workforce (DEW)

Sources

dor.sc.gov · dor.sc.gov · cost.org · oui.doleta.gov · oui.doleta.gov · oui.doleta.gov

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This is a determination aid, not advice. StateSide encodes published state rules and applies them mechanically to the facts you enter. It does not know your entity structure, your nexus history, your equity compensation, or the dozens of exceptions that turn a clean rule into a judgement call. Every determination cites the state source it came from — verify against that source, and take anything consequential to a payroll tax professional before you act on it.