Live in Virginia, Work in South Carolina: Which State Taxes Your Paycheck?
Answer
You file twice: South Carolina first, then Virginia. There is no reciprocity agreement between these two states, so South Carolina taxes the income where it was earned and Virginia taxes it again as resident income — with the resident credit removing the double charge rather than an exemption form preventing it.
Last verified
Without an agreement between Virginia 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 Virginia return, so completing Virginia first means doing it twice.
A Virginia resident taxed by another state on the same income claims the credit for taxes paid to other states on Schedule OSC. The credit is capped at the Virginia 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 Virginia.
- 2Resident return · VirginiaSchedule OSC
File a Virginia resident return reporting all income, then claim the credit for tax paid to South Carolina. The credit is capped at what Virginia 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
| Virginia | South Carolina | |
|---|---|---|
| Taxes wages | Yes — graduated | Yes — graduated |
| Reciprocity partners | 5 (Form VA-4) | None |
| Convenience rule | No | No |
| Nonresident return | Form 763 | Form SC1040 with Schedule NR |
| Credit for other-state tax | Schedule OSC | Form SC1040TC |
| Nonresident safe harbour | None published | None published |
| Local income tax | No | No |
| Revenue department | Virginia Department of Taxation | 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 Virginia 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: Virginia → South CarolinaHome state only
- 1099 contractor: Virginia → South CarolinaHome state, plus the client state if you work there
- Moved mid-year: Virginia → South CarolinaTwo part-year returns
Other Virginia pairs
Questions people actually ask
I live in Virginia and work in South Carolina. Which state takes the tax out of my paycheck?
You file twice: South Carolina first, then Virginia. There is no reciprocity agreement between these two states, so South Carolina taxes the income where it was earned and Virginia taxes it again as resident income — with the resident credit removing the double charge rather than an exemption form preventing it.
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 Virginia 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. Virginia gives residents a credit for tax paid to South Carolina on the same income, claimed on Schedule OSC. The credit is capped at the Virginia 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 Virginia and South Carolina rules on this page were last checked against Virginia Department of Taxation 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.
- Virginia Department of Taxation — individual income taxaccessed 2026-08-07
- Virginia — Form VA-4accessed 2026-08-07
- Virginia Tax — Reciprocityaccessed 2026-08-07
- South Carolina Department of Revenue — individual income taxaccessed 2026-08-07