South Carolina Tax Guide for Employers (2026) 

South Carolina uses a progressive income tax where allowances and standard deductions impact the calculation. The state’s default new employer SUTA rate is notably low at 0.06%. 

South Carolina’s progressive income tax uses brackets with personal allowances and standard deductions that reduce taxable income. Employees claim allowances on Form SC W-4, which determine both the personal allowance amount and the standard deduction. The state annualizes wages, applies deductions, then uses bracket-based rates to calculate withholding. 

South Carolina supports the following supplemental calculation methods. Supplemental wages such as bonuses and commissions will be calculated using the applicable method. 

Your assigned SUTA rate will be based on your company’s experience with unemployment claims. New employers typically start at the default rate of 0.06%. 

Follow these steps to begin withholding South Carolina payroll taxes for your employees: 

1. Obtain your Federal EIN at irs.gov
2. Register with the South Carolina Department of Revenue at dor.sc.gov
3. Register for SUTA with the SC Department of Employment and Workforce at dew.sc.gov
4. Submit a Netchex tax team request to enable South Carolina SIT and SUTA
5. Have each employee complete their tax forms with an automated onboarding task in Netchex, digitally storing tax forms
6. Configure any additional tax settings in the employee profile

Once setup is complete in Netchex, the system will automatically calculate, withhold, and remit all South Carolina payroll taxes on your behalf. 

The following are general filing and deposit deadlines for South Carolina payroll taxes. Deadlines may vary based on your employer size and deposit frequency. Always verify current schedules at South Carolina Department of Revenue. 

Note: Deadlines are subject to change. Always confirm current requirements directly with South Carolina Department of Revenue at https://dor.sc.gov/tax/withholding. 

The following official resources will help you stay current on South Carolina payroll tax requirements: 

• South Carolina Department of Revenue
• South Carolina DOR Withholding

What is South Carolina’s current top income tax rate? 

South Carolina’s top income tax rate is 6.3% (2024), with phased reductions continuing. 

What form do South Carolina employees complete? 

Employees complete South Carolina Form SC W-4, the Employee’s Withholding Allowance Certificate. 

What is South Carolina’s SUTA wage base? 

South Carolina’s SUTA wage base is $14,000 per employee per year. Verify at dew.sc.gov. 

Does South Carolina have local payroll taxes? 

No. South Carolina does not impose local payroll taxes. 

What is South Carolina’s supplemental withholding rate? 

South Carolina uses the employee’s regular withholding rate for supplemental wages.