Live in South Carolina, Work Remotely for a New Hampshire Employer: Who Taxes You?
Answer
South Carolina taxes the income and New Hampshire cannot. Residency, not the location of the job, drives this answer: South Carolina reaches all of a resident's income, and New Hampshire has no personal income tax to apply to the part earned inside its borders.
Last verified
The instinct that working in a no-tax state means paying no tax is the single most expensive misunderstanding in this niche. New Hampshire takes nothing, but South Carolina still taxes residents on income earned anywhere, so the full amount lands on your South Carolina return.
What you file
- 1Resident return · South Carolina
File a South Carolina resident return reporting all of your income.
The two states, side by side
| South Carolina | New Hampshire | |
|---|---|---|
| Taxes wages | Yes — graduated | No |
| Reciprocity partners | None | None |
| Convenience rule | No | No |
| Nonresident return | Form SC1040 with Schedule NR | Not applicable |
| Credit for other-state tax | Form SC1040TC | No income tax |
| Nonresident safe harbour | None published | Not applicable |
| Local income tax | No | No |
| Revenue department | South Carolina Department of Revenue | New Hampshire Department of Revenue Administration |
| Last verified |
The other direction
Reversing the commute does not always reverse the answer. Living in New Hampshire and working in South Carolina gives:No state income tax on your wages.
Same two states, different situation
The withholding answer turns on how you are paid and where the work happens, not only on which two states are involved.
- W-2 commuter: South Carolina → New HampshireHome state only
- 1099 contractor: South Carolina → New HampshireHome state only — estimated payments
- Moved mid-year: South Carolina → New HampshireOne part-year return — the state you left
Other South Carolina pairs
Questions people actually ask
I live in South Carolina and work remotely for a New Hampshire employer. Which state do I pay?
South Carolina taxes the income and New Hampshire cannot. Residency, not the location of the job, drives this answer: South Carolina reaches all of a resident's income, and New Hampshire has no personal income tax to apply to the part earned inside its borders.
Which state should my employer be withholding for?
South Carolina. Your employer should withhold South Carolina tax rather than New Hampshire tax on these wages. If a New Hampshire line is showing on your pay stub, raise it with payroll now rather than at filing time.
How current is this?
The South Carolina and New Hampshire rules on this page were last checked against South Carolina Department of Revenue and New Hampshire Department of Revenue Administration on 2026-08-07. We re-check the full grid every December after state legislative sessions close, and re-check the convenience-of-the-employer states quarterly because that is where the rules move fastest.
Sources
Every fact above comes from the revenue department that publishes the rule. We do not cite secondary summaries, and we do not restate a figure we could not find at source.
- South Carolina Department of Revenue — individual income taxaccessed 2026-08-07
- New Hampshire Department of Revenue Administration — individual income taxaccessed 2026-08-07