The sales tax in Charleston, SC is 9% on most retail purchases, made up of a 6% state tax and three 1% local taxes approved by Charleston County voters.1South Carolina Department of Revenue. Sales and Use Tax Index That headline rate is only the starting point. Vehicles are capped at a flat $500, groceries and prescription drugs are largely exempt, and restaurant meals and hotel rooms carry extra taxes on top of the 9%.
Where the 9% Comes From
South Carolina’s base state rate is 5% under S.C. Code § 12-36-910, with an additional 1% added by § 12-36-1110, bringing the state portion to 6%.2South Carolina Legislature. South Carolina Code 12-36-910 – Five Percent Tax on Tangible Personal Property3South Carolina Legislature. South Carolina Code 12-36 – South Carolina Sales and Use Tax Act Charleston County stacks three more pennies on top:
- A 1% Local Option Sales Tax that funds property-tax credits for county homeowners.
- A 1% Transportation Sales Tax that pays for road, bridge, and transit projects.
- A 1% Education Capital Improvements Tax that funds school construction.4South Carolina Legislature. South Carolina Code 4-10 – Local Sales and Use Tax5South Carolina Legislature. South Carolina Code 4-37 – County Transportation Authorities
The South Carolina Department of Revenue collects all of these and routes the local share back to the county and its school districts.6South Carolina Department of Revenue. Local Sales and Use Taxes The reason the breakdown matters: several categories of purchase don’t carry all four pieces.
The $500 Cap on Vehicles and Other Big-Ticket Items
South Carolina caps the sales tax on certain large purchases at $500 total, no matter the price. A $60,000 truck is taxed at $500, not the $5,400 that 9% would produce.7South Carolina Legislature. South Carolina Code 12-36-2110 – Maximum Tax on Certain Items The extra 1% from § 12-36-1110 doesn’t apply to these items either, so the cap really is a hard ceiling.
Items eligible for the $500 maximum include motor vehicles and motorcycles, boats and watercraft motors, aircraft, recreational vehicles like travel trailers and motor homes, trailers and semitrailers pulled by truck tractors, and self-propelled light construction equipment up to 160 net engine horsepower.8South Carolina Department of Revenue. Chapter 10 – Maximum Tax Items Manufactured homes follow a separate formula rather than the flat cap.
Groceries and Prescription Medicine
Unprepared food that qualifies for USDA food stamp purchases is exempt from the state sales tax under S.C. Code § 12-36-2120(75).9South Carolina Legislature. South Carolina Code 12-36-2120 – Exemptions from Sales Tax The statute is explicit that the exemption covers only the state portion. Whether any of the three Charleston County 1% taxes still apply to groceries depends on how each local ordinance interacts with the state exemption, so a grocery bill in Charleston is not completely tax-free but it won’t carry the full 9% either.
Prescription drugs are exempt from sales tax, along with prosthetic devices sold by prescription and dental prosthetics. The exemption also covers diabetic supplies such as insulin, blood glucose meters, and testing strips when sold under a physician’s authorization, and disposable supplies used for at-home IV administration when dispensed by a licensed pharmacist with a prescription.
Restaurant Meals and Hotel Stays
Prepared food and drink in Charleston carry an extra 2% city hospitality tax on top of the 9% sales tax. The hospitality tax applies to meals, food, and beverages sold by restaurants and by establishments licensed for on-premises alcohol consumption.10Charleston, SC – Official Website. Hospitality Tax
Lodging gets stacked even higher. Hotel stays and short-term rentals of under 30 nights are subject to a 2% state accommodations tax and a 2% Charleston County local accommodations tax, in addition to the applicable sales tax.11Charleston County. Local Accommodations Tax Application The total tax on a Charleston hotel room is well above what you’d pay on a regular retail purchase. Short-term rental hosts should check whether their booking platform collects every local tax, because any gap is the host’s responsibility to self-remit.
The August Tax-Free Weekend
South Carolina waives both state and local sales taxes for 72 hours each August under S.C. Code § 12-36-2120(57). The 2026 holiday runs from 12:01 a.m. Friday, August 7 through midnight Sunday, August 9.12South Carolina Department of Revenue. Tax Free Weekend Eligible items include clothing, footwear, and accessories; school supplies for classroom or homework use; computers, printers, computer software, and printer supplies; and certain bed and bath supplies.13South Carolina Department of Revenue. SC Information Letter 24-7 – Sales Tax Holiday Dates and List of Exempt and Non-Exempt Items
The exclusions are worth knowing before you plan a shopping trip. Furniture, jewelry, cosmetics, eyewear, smartphones, digital cameras, and digital music players remain taxable during the weekend. So do items placed on layaway or purchased for a trade or business. A monitor or keyboard sold on its own is taxable unless it’s purchased as a school supply or bundled with a computer.
Online Purchases Shipped to Charleston
Out-of-state retailers that exceed $100,000 in gross South Carolina sales during a calendar year must collect the full applicable sales tax, with the local rate based on the buyer’s shipping address.14South Carolina Department of Revenue. Remote Sellers That rule has been in place since October 2018, so most major online retailers already charge the correct 9% on orders shipped to Charleston addresses.