Live in Delaware, Work in South Carolina: Which State Taxes Your Paycheck?
Answer
Two returns, one credit. South Carolina has the first claim on wages earned inside the state and withholds accordingly. Delaware then taxes you as a resident on everything and gives credit for what South Carolina already took, capped at what Delaware would have charged on that same income.
Last verified
Without an agreement between Delaware and South Carolina, the overlap is handled after the fact rather than prevented. That is why the filing order matters: the South Carolina figure is an input to the Delaware return, so completing Delaware first means doing it twice.
A Delaware resident taxed by another state on the same income claims the credit for taxes paid to other states on Schedule I (Form PIT-RES). The credit is capped at the Delaware tax on that income, so it removes the double tax but never refunds the excess when the other state charges more.
What you file
- 1Nonresident return · South CarolinaForm SC1040 with Schedule NR
File the South Carolina nonresident return FIRST — you need the South Carolina tax figure before you can complete Delaware.
- 2Resident return · DelawareSchedule I (Form PIT-RES)
File a Delaware resident return reporting all income, then claim the credit for tax paid to South Carolina. The credit is capped at what Delaware would have charged on that same income, so if South Carolina taxes it at a higher rate the difference is not refunded.
The two states, side by side
| Delaware | South Carolina | |
|---|---|---|
| Taxes wages | Yes — graduated | Yes — graduated |
| Reciprocity partners | None | None |
| Convenience rule | Yes — general rule | No |
| Nonresident return | Form PIT-NON | Form SC1040 with Schedule NR |
| Credit for other-state tax | Schedule I (Form PIT-RES) | Form SC1040TC |
| Nonresident safe harbour | None published | None published |
| Local income tax | Yes | No |
| Revenue department | Delaware Division of Revenue | South Carolina Department of Revenue |
| Last verified |
The other direction
Reversing the commute does not always reverse the answer. Living in South Carolina and working in Delaware gives:Both states — credit offsets the double tax.
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.
- Remote worker: Delaware → South CarolinaHome state only
- 1099 contractor: Delaware → South CarolinaHome state, plus the client state if you work there
- Moved mid-year: Delaware → South CarolinaTwo part-year returns
Other Delaware pairs
Questions people actually ask
I live in Delaware and work in South Carolina. Which state takes the tax out of my paycheck?
Two returns, one credit. South Carolina has the first claim on wages earned inside the state and withholds accordingly. Delaware then taxes you as a resident on everything and gives credit for what South Carolina already took, capped at what Delaware would have charged on that same income.
Which state should my employer be withholding for?
South Carolina. The wages are sourced to South Carolina, so South Carolina withholding is correct and there is no Delaware withholding to set up.
Will I end up paying tax twice on the same income?
Not twice over, but you will pay the higher of the two rates. Delaware gives residents a credit for tax paid to South Carolina on the same income, claimed on Schedule I (Form PIT-RES). The credit is capped at the Delaware tax on that income, so if South Carolina taxes it more heavily the excess is not refunded by either state.
How current is this?
The Delaware and South Carolina rules on this page were last checked against Delaware Division of Revenue and South Carolina 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.
- Delaware Division of Revenue — individual income taxaccessed 2026-08-07
- South Carolina Department of Revenue — individual income taxaccessed 2026-08-07