South Carolina Wage and Payroll Tax Facts

February 02, 2024

Having to comply with unique state taxes and wage laws can make processing payroll doubly daunting. Here’s everything you need to know about these rates and laws for the state of South Carolina.

The Palmetto State doesn't have a specific minimum wage requirement or law for its businesses. Instead, it applies the rates required by the federal government in the Fair Labor Standards Act (FLSA) where appropriate. 
When it comes to processing payroll, South Carolina-based organizations must handle the following taxes in addition to those required by the federal government:

The below information was last updated January 30, 2024. It is not intended as legal or tax advice.

South Carolina Minimum Wage Rates

Wage Type

South Carolina Rates*

Federal Rates

Minimum Wage



Tipped Minimum Wage



Actual Tip Credit



*The state doesn't have a minimum wage law, so the federal rates under the FLSA are used when applicable.

South Carolina State Income Tax (SIT) Rates

South Carolina SIT is progressive, meaning it adjusts based on the income level of the employee paying the tax: 

Income Tax Bracket
[Over X] - [But not over Y]
2024 Income Tax Rate
$0 - $3,460 0.0%
$3,460 - $17,330 3.0% of excess over $3,460 minus $103.80
$17,330 or greater 6.4% of excess over $17,330 minus $693.02 


Additional South Carolina SIT Details

Supplemental Withholding Computation


Valid Filing Statuses

  • S = Single, Married; filing separately
  • M = Married; filing jointly


Number of allowances

Form W-4

SC W-4

Reconciliation Frequency


South Carolina State Unemployment Insurance (SUI) Rates

SUI provides unemployment benefits to eligible workers who are unemployed through no fault of their own (as determined by state law) and meet the state’s eligibility requirements.

South Carolina SUI Tax Details

Taxable Wage Base


Employee Subject to Tax


Rates for Experienced Employers

0.06% - 5.46%

Rates for New Employers


Effective Period

Calendar Year

Voluntary Contributions Allowed


Contingency Assessment Rate


South Carolina State Disability Insurance (SDI) Rates

SDI benefits are funded by employees through mandatory payroll deductions from each paycheck. South Carolina, however, doesn't require employers to collect an SDI tax.

Miscellaneous South Carolina Tax Information

Reciprocal Agreement(s)

Reciprocal agreements are when workers who live and work in different states are only required to pay taxes to the state where they live. South Carolina currently has no reciprocal agreements with any other states. 

This doesn’t mean, however, that interstate workers living in South Carolina pay double. It’s federally illegal for two states to tax the same income. In most cases, the employee’s work state will credit or refund them at tax time based on the taxes they owe their home state. If the tax rates differ, the employee must cover the difference.

Paid Sick Leave (PSL) Taxes

The state of South Carolina doesn’t require employers to collect PSL taxes, nor does the state have a program providing such leave to employees.

Paid Family and Medical Leave (PFML) Taxes

The state of South Carolina doesn’t require employers to collect PFML taxes, nor does the state have a program providing such leave to employees.

South Carolina Employer Registration

The agencies below can help with your state-based employer registration, including best practices, account numbers, and unemployment information. Contact the Department of Revenue for withholding tax topics and the Department of Employment and Workforce for unemployment tax topics.

Registration Details

Department of Revenue

Department of Employment and Workforce


(803) 896-1350 (803) 737-2400

Online Registration

MyDORWAY Homepage DEW Employer Registration Portal

Registration Form

Form SCDOR-111 Form UCE-151

Registration Instructions

Online and paper registration options are available. Account numbers will be issued during the online process or within 7-10 business days via mail. Online and paper registration options are available. Account numbers will be issued within 5-7 days via the online process or 1-2 weeks via mail.

Employer Self-Service Login

MyDORWAY Homepage DEW Login Page

Additional South Carolina Payroll Tax Resources


This information is provided as a courtesy and may be updated at any time. It is not intended as legal or tax guidance. If you have questions or concerns, we encourage you to seek the advice of a qualified CPA, tax attorney, or advisor.


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