The Dorchester County sales tax rate is 7 percent on most retail purchases. That total is South Carolina’s 6 percent statewide sales tax plus a 1 percent local Transportation Sales Tax approved by county voters.1South Carolina Department of Revenue. Local Sales Taxes The South Carolina Department of Revenue (SCDOR) collects the full amount at the register and sends the local penny back to the county.
Dorchester does not currently impose a Local Option Sales Tax or a Capital Project Sales Tax, so the transportation penny is the only local add-on.1South Carolina Department of Revenue. Local Sales Taxes Some neighboring counties stack several local taxes and reach 8 or 9 percent; Dorchester sits at the lower end of the regional range.
What the 1 Percent Local Tax Funds
The 1 percent is restricted by state law to highways, roads, bridges, and related infrastructure. It cannot be moved to the state’s general fund or spent on unrelated county programs.2South Carolina Legislature. South Carolina Code of Laws Title 4 Chapter 37 – Optional Methods for Financing Transportation Facilities
Dorchester voters renewed the tax on Election Day 2022, and the current program began collecting on May 1, 2024. It runs for up to fifteen years or until $735 million has been collected, whichever comes first.3Dorchester County Transportation Sales Tax. About When the program hits its cap or expires, the local penny goes away and the rate drops to the 6 percent state portion unless voters approve a new referendum.
What You Actually Pay on Common Purchases
S.C. Code ยง 12-36-2120 lists dozens of exemptions, and a few of them change what Dorchester shoppers hand over at checkout.
Groceries
Unprepared food that qualifies for purchase with USDA food assistance is exempt from the 6 percent state sales tax.4South Carolina Legislature. South Carolina Code 12-36-2120 – Exemptions from Sales and Use Tax The exemption applies only to the state portion, so you still owe the 1 percent local Transportation Sales Tax on groceries in Dorchester County. Prepared meals from restaurants and delis are taxed at the full 7 percent.
Prescription Medicine
Prescription drugs, prosthetic devices prescribed by a physician, insulin, diabetic testing supplies, and certain disposable medical supplies used for IV administration are exempt from both state and local sales tax.4South Carolina Legislature. South Carolina Code 12-36-2120 – Exemptions from Sales and Use Tax These items ring up at zero sales tax in Dorchester County.
Cars, Boats, and Other Max Tax Items
Cars, boats, aircraft, golf carts, and ATVs are taxed at a special 5 percent rate capped at $500 in state tax, regardless of the price. A $40,000 vehicle carries $500 in state sales tax rather than $2,400. The 1 percent local Transportation Sales Tax applies separately on these items under its own rules.
The Annual Tax-Free Weekend
Once a year, typically in early August, South Carolina suspends both state and local sales taxes on qualifying purchases during a Tax Free Weekend. The 2025 holiday covered four categories with no price cap:5South Carolina Department of Revenue. South Carolina’s 2025 Tax Free Weekend Starts Friday, August 1
- School supplies, including calculators, musical instruments, and headphones used for classroom or home assignments
- Computers, printers, and software; parts and accessories qualify only when sold as part of a package with a computer
- Clothing and footwear, from school uniforms and swimwear to graduation caps and athletic shoes
- Bed and bath items such as sheets, pillows, towels, bedspreads, and shower curtains
Items can be new or used, and there is no per-item price limit. SCDOR publishes the exact dates each summer.
Buying from Out-of-State or Online Sellers
If an out-of-state seller doesn’t collect South Carolina sales tax on your purchase, you owe use tax at the same combined rate on items you bring into the state to use, store, or consume.6South Carolina Department of Revenue. Use Tax For a Dorchester County address, that is 7 percent.
Most online purchases are already handled for you. Remote sellers with $100,000 or more in annual gross sales into South Carolina must register and collect the full combined rate based on the buyer’s location.7South Carolina Department of Revenue. Remote Sellers Since April 2019, marketplace facilitators such as Amazon, eBay, and Etsy have been required to collect and remit the tax on behalf of their third-party sellers.8South Carolina Legislature. South Carolina Code 12-36-71 – Marketplace Facilitator Use tax still matters for private sales, foreign purchases, and transactions with smaller sellers below the nexus threshold.
If You Sell in Dorchester County
Any business making retail sales in South Carolina needs a Retail License before its first transaction. The license costs $50, is non-refundable, and is obtained through SCDOR’s MyDORWAY portal. It does not expire so long as you keep your address current and keep making sales. Each business location needs its own license, and the license is not transferable when a business changes hands.9South Carolina Department of Revenue. Licensing (Retail License)
Sales and use tax accounts default to monthly filing. Lower-volume sellers can request quarterly or annual filing in writing from SCDOR.10South Carolina Business One Stop. South Carolina Sales Tax If you make no sales for 24 consecutive months, state law requires you to surrender the Retail License.9South Carolina Department of Revenue. Licensing (Retail License)
Sellers who sell through a marketplace facilitator still have to collect and report tax on any sales made outside the platform, such as through their own website or at trade shows.
Penalties for Late or Missing Payments
Unpaid sales tax accrues interest from the original due date until paid, at a rate tied to the IRS underpayment formula and adjusted periodically by SCDOR.11South Carolina Legislature. South Carolina Code 12-54-25 – Interest Due on Late Taxes The department can also assess penalties for failing to file or pay on time.
The most serious consequence is license revocation. SCDOR can revoke a Retail License and any alcohol beverage licenses as part of collections. Once revocation is issued, the business must stop operating. Continuing to operate anyway can lead to arrest and civil penalties of $500 per day.12South Carolina Department of Revenue. Notices and Compliance Collected sales tax is considered the state’s money held in trust by the retailer, and SCDOR enforces that view.