Unemployment Insurance Tax Rates To Decrease In 2026

South Carolina’s unemployment insurance tax rates will decrease or hold steady for employers in 2026, per an announcement made earlier this week by Governor Henry McMaster and Executive Director William Floyd of the South Carolina Department of Employment and Workforce (DEW).

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%.

Tax rate notices were mailed to businesses last week, and employers can also log into their State Unemployment Insurance Tax System (SUITS) to see their 2026 rate. Click here to view the 2026 tax rate chart.

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