Governor Henry McMaster and S.C. Department of Employment and Workforce (DEW) Executive Director William Floyd announced that South Carolina’s unemployment insurance (UI) tax rates will decrease or remain the same for employers across the state in 2027. These reductions are projected to reduce the employer tax burden by approximately $360 million in 2027, providing employers with greater opportunities to support their workforce and strengthen their businesses.
"Throughout my time as Governor over the last ten years, South Carolina UI business taxes have always remained consistent or decreased, giving employers the flexibility to support their families and allowing businesses to thrive,” said Governor Henry McMaster. “South Carolina UI tax cuts allow employers more opportunity to expand their business and strengthen the workforce, which helps our state remain a competitive destination for both employers and employees."
Each year, DEW carefully conducts an extensive analysis of factors, such as the economy, the current state of the UI Trust Fund, projected unemployment rates, and estimated benefit payments. This year marks the 13th consecutive year in which unemployment insurance tax rates have decreased or remained steady, reinforcing South Carolina’s commitment to responsible funds management while supporting the business community.
With a strong and fully solvent UI Trust Fund balance of $1.8 billion, DEW has released the tax rates applicable to wages paid Jan. 1 through Dec. 31, 2027, ranging from 0.06 percent to 5.46 percent depending on an individual business’s experience with the UI system.
What employers need to know:
In 2027, UI tax costs are projected to be $5 million lower than in 2025, set to raise approximately $125 million.
Any business that had no UI benefit charges from July 1, 2022, through June 30, 2026, is assigned to tax class 1 and pays 0.06 percent.
2027 rates are lower than last year for businesses in tax classes 2 through 19. The average savings for businesses in tax classes 2 through 19 is 11 percent.
“South Carolina has seen significant employment growth and prosperity. Not only do we have more people working than ever before, the fastest-growing labor force in the nation, and substantial payroll growth across most industries, we have also provided our state's employers with stable or even lower tax rates. Thank you to Governor McMaster for his leadership and for supporting our agency in protecting the unemployment insurance system and investing in our businesses,” said DEW Executive Director William Floyd.
In addition to next year’s tax rate reduction, the past decade has seen historic savings for businesses, as illustrated in the above graph.
While most tax classes are lower than their 2026 levels, individual businesses may move between tax classes based on their unemployment claim activity. Employers receive a quarterly “charge statement” to review any benefit charges applied to their accounts and have 30 days to protest any charges believed to be incorrect. Tax rate notices will be mailed to businesses. Employers can also log into their State Unemployment Insurance Tax System (SUITS) account today to view their 2027 tax rate.
Click here to view the 2027 tax rate chart.
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