Overview
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%.
State Income Tax (SIT)
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.
| Tax Structure | Progressive with brackets |
| State Withholding Form | Form SC W-4 |
| Allowances | Personal allowances reduce taxable income |
| Standard Deduction | Determined by number of allowances |
| SUTA Rate | 0.06% default for new employers (very low) |
Supplemental Wages
South Carolina supports the following supplemental calculation methods. Supplemental wages such as bonuses and commissions will be calculated using the applicable method.
Employer State Unemployment Tax (SUTA)
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%.
| Tax Type | Employer-paid only |
| Default New Employer Rate | 0.06% |
| Rate Assignment | Experience-rated; assigned annually by the state |
Other Taxes & Obligations
South Carolina does not currently impose significant additional state-level payroll taxes beyond SIT and SUTA. This keeps payroll relatively streamlined compared to states with multiple layers of tax obligations.
Disclaimer: This content is provided for general informational purposes only and does not constitute legal, tax, or accounting advice. Netchex does not provide tax or legal guidance and makes no representations regarding the accuracy or applicability of this information. Laws and regulations may change. The information on this page reflects payroll tax guidelines as of March 2026. For the most current requirements, please refer to:
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