Charleston, SC Sales Tax: Rates, Exemptions, and Use Tax

The sales tax rate in Charleston, South Carolina is 9%. That total combines the 6% state sales tax with three 1% local taxes that voters in Charleston County have approved. The 9% applies to most retail purchases, but groceries, prescription drugs, vehicles, hotel stays, and restaurant meals each follow their own rules, and the difference between what the sticker says and what you pay at the register can be significant.1South Carolina Department of Revenue. Sales and Use Tax Index

How the 9% Breaks Down

Four separate levies stack to reach 9% in Charleston County:

All four show up as a single 9% charge on your receipt. The local pieces exist because voters approved them, and they can expire or change if voters don’t renew them, so the rate may shift in future election cycles.

What You Pay on Groceries

Unprepared food you cook at home is exempt from the 6% state sales tax, but that does not make groceries tax-free in Charleston.6South Carolina Legislature. South Carolina Code 12-36-2120 – Exemptions From Sales Tax The state’s grocery exemption does not carry through to most local taxes.7South Carolina Department of Revenue. Chapter 9 – Exemptions The Education Capital Improvement tax does exempt unprepared food on its own.8South Carolina Department of Revenue. Local Sales Taxes

Put the pieces together and groceries in Charleston County avoid the 6% state tax and the 1% education tax, but the 1% Local Option and 1% Transportation taxes still apply. The effective rate on your grocery bill is about 2%, not zero.

Full Exemptions

A handful of categories are exempt from both state and local sales tax entirely. Prescription medications and prosthetic devices sold by prescription are fully exempt, including drugs used to treat cancer, lymphoma, leukemia, and rheumatoid arthritis, plus medicines that relieve the side effects of those treatments. Insulin and diabetic supplies qualify as well.6South Carolina Legislature. South Carolina Code 12-36-2120 – Exemptions From Sales Tax

Farms get broad relief. Livestock and poultry feed, fertilizers, seeds, insecticides, farm machinery and replacement parts used in planting, cultivating, or harvesting, fuel for farm equipment, and electricity for crop irrigation are all exempt.9South Carolina Department of Revenue. Exemptions for South Carolina Farmers Pickup trucks and other road vehicles are not covered.

Reduced Rate for Residents 85 and Older

South Carolina residents age 85 or older receive a 1% reduction on the state portion of sales tax for items purchased for personal use, dropping the state rate from 6% to 5%. The local taxes stay the same. You have to ask for the discount at the register and show proof of age; no preregistration is required. The reduction does not apply to gifts for other people or to business purchases.10South Carolina Department of Revenue. SC Revenue Ruling 08-5 – Purchases by Individuals 85 Years of Age and Older

Vehicles, Boats, and Aircraft

Cars, motorcycles, boats, aircraft, recreational vehicles, and trailers are not taxed at the full 9%. The rate is 5% of the purchase price, capped at $500 total.11South Carolina Legislature. South Carolina Code 12-36-2110 – Maximum Tax A $15,000 car and a $75,000 boat both top out at the same $500.

For vehicles first titled or registered in South Carolina, the Infrastructure Maintenance Fee has largely replaced the traditional sales tax since July 2017. The math is identical, 5% of the purchase price capped at $500, but the fee is collected by the DMV at registration rather than by the retailer at the point of sale. A dealer collects and remits the fee for you; a private-sale buyer pays it at titling. If you move to South Carolina with a vehicle already registered in another state, the fee is a flat $250.12South Carolina Legislature. South Carolina Code Section 56-3-627 Boats, aircraft, and other items not registered through the DMV still follow the older max-tax system at the point of sale.

Hotels, Short-Term Rentals, and Restaurant Meals

Lodging in Charleston costs more in tax than ordinary retail. The state charges a 7% accommodations tax on hotel rooms, short-term rentals, and other sleeping accommodations, replacing the standard 6% state rate for lodging. Extras like room service and in-room movies are taxed at a separate 5% state rate.13South Carolina Legislature. South Carolina Code Section 12-36-920 – Tax on Accommodations

On top of that, Charleston County and the City of Charleston each add a 2% local accommodations tax. A short-term rental guest staying in the City of Charleston within Charleston County pays a combined accommodations tax of roughly 14%. Properties in the portion of the city that falls in Berkeley County see about 12%, because they miss one of the county-level levies.14City of Charleston, SC. Accommodations Tax for Short Term Residential Rentals

Restaurants and bars in the City of Charleston charge a 2% hospitality tax on prepared meals and beverages, including on-premises alcohol sales. That is in addition to the 9% sales tax, so a meal in Charleston carries an effective 11% combined rate.15Charleston, SC – Official Website. Hospitality Tax

Annual Tax-Free Weekend

South Carolina holds a 72-hour sales tax holiday each August, starting at 12:01 a.m. on the first Friday and running through Sunday.16South Carolina Department of Revenue. Tax Free Weekend Both state and local sales taxes are suspended on eligible items during that window. Qualifying categories include clothing and accessories, footwear, school supplies, computers, software, printers, and certain bed and bath items.17South Carolina Department of Revenue. Tax Free Weekend Retailer Toolkit The Department of Revenue publishes exact dates each summer.

Use Tax on Out-of-State and Online Purchases

If you buy something online or out of state and no sales tax is collected, South Carolina expects you to pay a use tax at the same rate as the sales tax. Furniture, electronics, catalog purchases, and anything else that would be taxable locally all count.18South Carolina Department of Revenue. Use Tax Individuals report and pay use tax using Form UT-3.19South Carolina Department of Revenue. Sales Tax Forms Most major online retailers now collect South Carolina sales tax automatically under the state’s economic nexus rules, but smaller out-of-state sellers and private-party sales can still create a use tax obligation.

For Businesses Collecting Sales Tax

Any business making retail sales in South Carolina needs a Retail License before the first transaction. You apply through the Department of Revenue using Form SCDOR-111, which asks for ownership details, business type, and locations.20South Carolina Department of Revenue. SCDOR-111 Instructions The license costs a non-refundable $50.21South Carolina Department of Revenue. Licensing – Retail License

Returns and payments go through the MyDORWAY online portal.22South Carolina Department of Revenue. Apply for a Business Tax Account Filing frequency depends on sales volume. Monthly filers owe returns by the 20th of the following month. Quarterly filers submit by the 20th of April, July, October, and January. Annual filers are due by January 20.23South Carolina Business One Stop. South Carolina Sales Tax You generally need Department of Revenue approval to file on anything other than a monthly schedule.

Out-of-state sellers that make more than $100,000 in sales into South Carolina during the current or previous calendar year must register, collect, and remit sales tax as if they had a physical location in the state. Marketplace platforms that meet the threshold collect and remit on behalf of their third-party sellers.24South Carolina Department of Revenue. Remote Sellers

Filing Discount and Late Penalties

South Carolina rewards retailers who file on time with a small discount on the tax owed. If the tax due is under $100, you keep 3%. If it’s $100 or more, the discount drops to 2%, with a maximum of $3,100 per fiscal year for businesses filing electronically.24South Carolina Department of Revenue. Remote Sellers

Miss a deadline and two penalties can apply. For a late return, the state adds 5% of the tax owed for each month or partial month overdue, up to 25%. For a late payment where the return was filed on time but the money was not sent, the penalty is 0.5% per month, also capped at 25%. Interest accrues on both from the original due date until the balance is paid.25South Carolina Legislature. South Carolina Code 12-54-25 – Interest Due on Late Taxes Filing on time but paying late costs far less than ignoring the filing.