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South Carolina Nanny Tax Guide

South Carolina exempts domestic services performed in a private residence from state income tax withholding under S.C. Code Ann. § 12-8-520(C)(2). Household employers don't withhold South Carolina state income tax from their nanny's paycheck.

South Carolina household employer quick facts

State Income Tax
State Unemployment
Disability Insurance
Paid Family Leave

Minimum Wage

$7.25/hour (federal)

SUTA Rate Range

0.06% - 5.4%

Key things to know
  • No state income tax withholding for domestic workers
  • Uses federal minimum wage
  • No disability or paid leave requirements
  • Employer SUI still required on the first $14,000 in wages

South Carolina Employer Requirements

State Income Tax (Exempt)

S.C. Code Ann. § 12-8-520(C)(2) enumerates domestic services performed in a private residence as an exception to the withholding requirement, alongside farm labor and ministerial services. Your nanny is responsible for paying any South Carolina income tax they owe when they file their return.

State Unemployment Insurance

Employers pay SUI tax on the first $14,000 of wages. New employer rate is 0.54%, with rates ranging from 0.06% to 5.4% based on experience.

Workers' Compensation

South Carolina generally does not require workers' compensation for household employers with fewer than 4 employees.

What will it cost?

Wondering what you'll actually owe as a South Carolina employer? Adjust the numbers below to get a quick estimate of your annual tax obligations.

This guide is for informational purposes only and should not be considered legal or tax advice. Tax laws change frequently. Always verify current requirements with your state's tax agency or consult with a qualified tax professional.

Verified accurate as of April 2026Sources: South Carolina tax agency, IRS Publication 926

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