The Charleston County transportation sales tax is a half-cent (0.5%) local tax on most retail purchases, dedicated to roads, public transit, greenbelt preservation, and bicycle and pedestrian infrastructure. Added to South Carolina’s 6% state rate and other local option taxes, it brings the total sales tax rate in Charleston County to 9%.1South Carolina Department of Revenue. Sales and Use Tax Index The tax has raised more than $4.5 billion for transportation projects since voters first approved it, but its future is now in flux: voters rejected a renewal referendum in November 2024, and County Council passed first reading of a replacement ordinance in 2026 aimed at the next general election ballot.2Charleston County. Charleston County Council Passes First Reading of 2026 Transportation Sales Tax Ordinance
The Rate and What You Pay It On
South Carolina Code Title 4, Chapter 37 lets counties levy a sales and use tax of up to 1% for transportation, but only after voters approve it in a referendum held during a general election. The statute caps the tax at 25 calendar years and shuts it off automatically once collections hit the revenue target in the authorizing ordinance, even if time is left on the clock. Any revenue collected over that target must be used to pay down transportation-related debt.3South Carolina Legislature. South Carolina Code 4-37 – Optional Methods for Financing Transportation Facilities
Charleston County’s current rate is 0.5%, commonly called the half-penny or half-cent tax.4Charleston County. Funding Retailers collect it at checkout along with the state 6% rate and any other local taxes, and the South Carolina Department of Revenue handles the distribution back to the county.
It also applies as a use tax. If you buy something out of state (online furniture, for example) and the seller doesn’t collect South Carolina sales tax, you owe the equivalent as use tax, including the local half-cent. Both businesses and individuals are required to report and pay it, and taxpayers have to identify the county where the item is used so the local share is allocated correctly.5South Carolina Department of Revenue. Use Tax
What’s Exempt and What Isn’t
This is where the local tax catches people off guard. Groceries (unprepared food) are exempt from South Carolina’s 6% state sales tax, but that exemption does not automatically flow through to local sales and use taxes unless the specific local law says so.6South Carolina Department of Revenue. Unprepared Food Exemption In practice, your grocery bill in Charleston County still includes the local half-cent even though the state portion doesn’t apply.
Prescription medications are fully exempt from both state and local tax under South Carolina Code Section 12-36-2120(28), and that exemption carries through to the local tax.7South Carolina Legislature. South Carolina Code 12-36 – Sales and Use Tax Prepared meals at restaurants are fully taxable at the combined 9% rate; they don’t qualify for the unprepared food exemption at either level.6South Carolina Department of Revenue. Unprepared Food Exemption
Where the Money Goes
Revenue flows into four categories: road and bridge work, public transit, greenbelt preservation, and bicycle and pedestrian improvements.8Charleston County. Transportation Sales Tax Special Committee Begins Work, Seeks Community Input on Future Investments County Council runs an annual allocation program of roughly $9 million a year, split across resurfacing ($4 million), local paving ($2 million), intersection improvements ($2 million), rural roads ($2 million), and bike and pedestrian projects ($1 million).4Charleston County. Funding That annual program is a slice of the total; the larger share funds major capital projects that take years to design and build.
Transit
About a quarter of all half-penny funds support CARTA, which runs bus and paratransit service across the region. The biggest single transit investment is the Lowcountry Rapid Transit project, which has received roughly $250 million in local sales tax funding through bond proceeds and direct cash contributions.9Federal Transit Administration. Lowcountry Rapid Transit Project – Charleston, SC That local commitment is what makes the project competitive for federal Capital Investment Grants, since the FTA weighs local financial commitment heavily.
Greenbelt
The Charleston County Greenbelt Program has protected nearly 28,856 acres of natural areas, parks, and open space using transportation sales tax revenue.10Charleston County. Charleston County Greenbelt Program A transportation tax funding greenspace surprises people. The logic is that preserving undeveloped land shapes growth patterns and reduces the need for new road infrastructure in areas that would otherwise sprawl, and the program also funds parks and trails that serve as non-motorized transportation.
The 2024 Rejection and the 2026 Referendum
Charleston County voters approved the first half-cent transportation tax in 2004, with collections beginning in 2005. A second half-cent was approved in 2016. The 2004 tax is projected to hit its revenue target and expire around 2030–2031.4Charleston County. Funding
To replace the expiring 2004 tax, the county put a renewal on the November 2024 ballot. The proposed ordinance would have authorized a fresh 0.5% tax for up to 25 years with a $5.4 billion revenue cap, starting May 1, 2030 or whenever the 2004 tax finished collecting, whichever came first.11Charleston County. Transportation Sales Tax Ordinance Voters rejected it. The 2016 tax continues to collect, but revenue from the 2004 tax is already fully committed to approved projects.
County Council isn’t waiting long. In 2026, Council passed first reading of a new transportation sales tax ordinance to move the question back toward a referendum.2Charleston County. Charleston County Council Passes First Reading of 2026 Transportation Sales Tax Ordinance A special committee has been gathering community input on the structure of the next proposal, with early estimates projecting roughly $4.25 billion in revenue over 25 years.8Charleston County. Transportation Sales Tax Special Committee Begins Work, Seeks Community Input on Future Investments State law requires the vote to happen during a general election, so the earliest possible date is November 2026.3South Carolina Legislature. South Carolina Code 4-37 – Optional Methods for Financing Transportation Facilities
Oversight
South Carolina law requires counties to conduct annual audits verifying that sales tax revenue is collected, reported, and distributed properly.12South Carolina State Treasurer. Audit Information Spending must track the project list approved in the original referendum ordinance. Council doesn’t have free rein to redirect money; any revenue above the specified amount goes to paying down transportation infrastructure debt rather than new projects.3South Carolina Legislature. South Carolina Code 4-37 – Optional Methods for Financing Transportation Facilities
The county publishes project information and spending data through its transportation program website, where residents can review scoring, funding allocations, and progress updates.13Charleston County Transportation. Public Input – Charleston County Transportation Projects are evaluated using a 100-point scoring system that weighs public and municipal support, congestion relief, safety improvements, and consistency with Council’s guiding principles, so residents can see why a project ranked the way it did.