TaxTrack guide · Updated September 24, 2026
South Carolina late filing and late payment penalties, explained
Short answer: South Carolina adds 5% of the unpaid tax for each month a return is late, up to 25%, and 0.5% for each month the tax is unpaid, also up to 25% (SC Code 12-54-43). A return that is years late usually carries the full 25% for filing, while the payment penalty keeps building until it reaches its own 25% cap.
Knowing exactly how these two penalties build up lets you estimate them yourself, and shows where a penalty waiver request could matter most.
The two penalties
| Penalty | Rate | Cap |
|---|---|---|
| Failure to file | 5% of the tax for each month or part of a month the return is late | 25% |
| Failure to pay | 0.5% of the tax for each month or part of a month it stays unpaid | 25% |
Both are percentages of the tax that should have been shown on the return, and both apply under the uniform rules in SC Code 12-54-43 for returns filed with SCDOR.
Worked example
A C corporation had $20,000 of South Carolina taxable income, so its tax for the year was $1,000 (5%).
- Six months late: the filing penalty has already hit its cap (5 months x 5% = 25%), so it is $250. The payment penalty is 6 x 0.5% = 3%, or $30.
- Five years late: filing is still capped at $250. The payment penalty reached its 25% cap after 50 months, so it is also $250, for $500 in penalties on $1,000 of tax.
Over several missing years, older years sit at both caps while the most recent years are still building. TaxTrack counts the months since each year's due date and shows the result as the working figure, with the low end assuming a waiver and the upper end at both caps.
Can the penalties be reduced?
SCDOR accepts penalty waiver requests in qualifying circumstances through Form C-530 or MyDORWAY. Approval depends on the facts and the documents you provide, and interest generally is not waived. Businesses that never registered or filed may also want to look at SCDOR's voluntary disclosure program, which can lead to penalties being waived.
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Start the free checkupCommon questions
What is the South Carolina late filing penalty?
5% of the unpaid tax for each month or part of a month the return is late, up to a maximum of 25% (SC Code 12-54-43).
What is the South Carolina late payment penalty?
0.5% of the unpaid tax for each month or part of a month it stays unpaid, up to a maximum of 25% (SC Code 12-54-43).
Is interest charged on top of penalties?
Yes, interest applies to unpaid tax, and SCDOR says interest generally is not waived even when a penalty waiver is granted. TaxTrack leaves interest out unless you enter a rate, because SCDOR historical interest rates are not loaded yet.
Sources
Sources checked September 24, 2026.
Not tax, legal or accounting advice. TaxTrack by ExpenseTrack gives estimates for general information and planning only. It estimates and organizes; it does not prepare or file returns. Actual tax, penalties, interest and reinstatement requirements are determined by the South Carolina Department of Revenue, county offices and the Secretary of State. Talk to a qualified CPA, enrolled agent or tax attorney about your situation.