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Taxation of Employee Benefits: South Carolina

Taxation of Employee Benefits requirements for other states

Federal law and guidance on this subject should be reviewed together with this section.

Author: Brightmine Editorial Team


  • Same-sex marriage is legal in South Carolina and, based on the US Supreme Court ruling in Obergefell v. Hodges, the value of health insurance benefits provided to an employee's same-sex spouse is not subject to state income tax withholding. The value of such benefits provided to same-sex civil union partners and domestic partners is taxable in the state. See Same-Sex Couple Health Insurance Benefits.