South Carolina employers will see a decrease or no change in unemployment insurance tax rates for 2026, according to an announcement from Governor Henry McMaster and William Floyd, Executive Director of the South Carolina Department of Employment and Workforce (DEW).
The total cost of unemployment insurance is expected to be $40 million less than in 2025. This marks the twelfth consecutive year that rates have either decreased or remained unchanged, resulting in a cumulative reduction of $355 million in employer tax burdens. The planned 2026 tax cut represents the largest percentage decrease since 2011. Businesses classified in tax classes 2 through 19 are projected to save an average of 34.7%.
“Unemployment insurance (UI) costs are projected to be $40 million lower overall than in 2025. The rates have decreased or remained the same for the past twelve consecutive years, reducing the tax burden on employers by $355 million dollars. The upcoming 2026 UI tax cut is the largest by percentage since 2011. The average savings for businesses in tax classes 2 through 19 is 34.7%,” said state officials.
Tax rate notices were sent out last week, and employers can also check their new rates online through the State Unemployment Insurance Tax System (SUITS). More information about the new rates can be found on the official chart.
