Live in South Carolina, Work Remotely for a Tennessee Employer: Who Taxes You?
Answer
Only South Carolina taxes you. Tennessee levies no personal income tax on wages, so nothing is withheld there and you file no Tennessee return. South Carolina taxes its residents on all income wherever earned, which means your Tennessee earnings go on a South Carolina resident return in full.
Last verified
The instinct that working in a no-tax state means paying no tax is the single most expensive misunderstanding in this niche. Tennessee 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 | Tennessee | |
|---|---|---|
| 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 | Tennessee Department of Revenue |
| Last verified |
The other direction
Reversing the commute does not always reverse the answer. Living in Tennessee 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 → TennesseeHome state only
- 1099 contractor: South Carolina → TennesseeHome state only — estimated payments
- Moved mid-year: South Carolina → TennesseeOne 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 Tennessee employer. Which state do I pay?
Only South Carolina taxes you. Tennessee levies no personal income tax on wages, so nothing is withheld there and you file no Tennessee return. South Carolina taxes its residents on all income wherever earned, which means your Tennessee earnings go on a South Carolina resident return in full.
Which state should my employer be withholding for?
South Carolina. Your employer should withhold South Carolina tax rather than Tennessee tax on these wages. If a Tennessee 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 Tennessee rules on this page were last checked against South Carolina Department of Revenue and Tennessee Department of Revenue 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
- Tennessee Department of Revenue — individual income taxaccessed 2026-08-07