2024 Rank: 31
2023 Rank: 30
South Carolina is the 31st-best state, deriving most of its score from its $10,000 wage-based withholding threshold. While a meaningful threshold, a day-based threshold would provide more certainty and simplicity for nonresident taxpayers and employers of nonresident taxpayers.
South Carolina also has opportunities to enter into beneficial reciprocity agreements, with over 87 percent of incoming commuters coming from just two states.
Category | Current Law | Score | Total Possible |
Filing threshold | Global wage threshold | 0 | 10 |
Reciprocity agreements | None | 0 | 10 |
Convenience of the employer rule | None | 0 | 0 |
Individual Income Tax Code | 2.47 | 5 | |
Withholding threshold | Wage threshold: $10,000 | 6 | 10 |
Total Score | 8.47 | 35 |
Ways to Improve:
- Pass filing and withholding thresholds of greater than 30 days
- Seek reciprocity agreements with:
- North Carolina: 60.95 percent of incoming commuters
- Georgia: 26.88 percent
For further ideas for how your state could improve, see our Example Remote Work Provision.
Read the report here, or click below to read how your state performs on the remote worker index.
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