The Lexington, SC sales tax rate is 7% on most retail purchases: 6% goes to the state and 1% to a local school district tax that Lexington County voters extended in March 2026.1South Carolina Department of Revenue. Sales and Use Tax Index The South Carolina Department of Revenue collects both portions together, so retailers remit a single payment. A few common purchases follow different rules, and a meal at a Lexington restaurant carries an extra local charge on top of the 7%.
What You Actually Pay on Common Purchases
Groceries
Unprepared food that qualifies for purchase with SNAP benefits is exempt from the 6% state sales tax.2South Carolina Legislature. South Carolina Code of Laws Title 12 Chapter 36 The 1% local school district tax still applies, so you pay 1% on most grocery staples instead of the full 7%.3South Carolina Department of Revenue. Chapter 9 – Exemptions Prepared food from a deli counter or restaurant doesn’t get the break.
Prescription Medicine
Prescription drugs and prosthetic devices sold by prescription are fully exempt from sales tax under SC Code ยง 12-36-2120(28).2South Carolina Legislature. South Carolina Code of Laws Title 12 Chapter 36 That covers prescription medicines used for cancer treatment, rheumatoid arthritis, and related conditions, plus free manufacturer samples. Over-the-counter medications are not exempt.
Vehicles
Cars, trucks, and motorcycles are exempt from both state and local sales tax.4South Carolina Department of Revenue. SC Revenue Ruling 18-1 Instead, you pay an Infrastructure Maintenance Fee when you title or register the vehicle with the DMV. The fee is 5% of the purchase price, capped at $500.5South Carolina Legislature. South Carolina Code 56-3-627 Private-party purchases use fair market value instead of the sales price. On a $30,000 car, you pay the $500 cap rather than $2,100 in sales tax.
Restaurant Meals
Prepared food in the Town of Lexington carries an additional 2% hospitality tax on top of the 7% sales tax, for a 9% total. The hospitality tax applies to meals and beverages sold by restaurants, hotels, convenience stores, grocery stores selling prepared food, and any establishment licensed for on-premises alcohol consumption.6Lexington, SC. Hospitality Tax Meals prepared outside town limits but delivered for consumption within the town are also covered.
Hotels and Short-Term Rentals
Overnight stays are taxed under a 7% state accommodations tax rather than the regular sales tax, plus any applicable local tax.7South Carolina Department of Revenue. Accommodations Cleaning fees and service charges from property management companies count as part of the rental cost and are taxed the same way.
The Annual August Tax-Free Weekend
South Carolina drops both state and local sales tax to zero on qualifying items during a 72-hour holiday every August, running from 12:01 a.m. on the first Friday through the end of that Sunday.8South Carolina Department of Revenue. Tax Free Weekend Qualifying categories include:
- Clothing and footwear of all types, excluding rentals
- School supplies: pens, pencils, paper, binders, notebooks, backpacks, lunchboxes, and calculators
- Computers, printers, and software
- Bed and bath supplies
- Books, including those used for school assignments
Cell phones, jewelry, cosmetics, furniture, and items bought for business use don’t qualify. A standalone monitor or keyboard is excluded unless bundled with a computer. Layaway purchases don’t count; the transaction has to close during the holiday weekend.8South Carolina Department of Revenue. Tax Free Weekend
If You’re the One Collecting the Tax
Any business selling tangible goods in South Carolina needs a retail license from the Department of Revenue before its first sale.9South Carolina Department of Revenue. Apply for a Business Tax Account You register and file through MyDORWAY, the Department’s online portal.10South Carolina Department of Revenue. Sales Tax
Returns are due by the 20th of the month following the reporting period. January sales are due February 20, and so on. Most businesses file monthly; smaller operations may qualify for quarterly filing.
South Carolina rewards on-time filing with a small discount. If the return shows less than $100 in tax due, you keep 3%. At $100 or more, the discount is 2%. The cap is $3,000 per state fiscal year, or $3,100 if you file electronically.11South Carolina Legislature. South Carolina Code 12-36-2610 The discount disappears entirely if the return or payment is even one day late.
Missing a deadline triggers two penalties that stack. Late filing runs 5% of the unpaid tax per month or partial month, capped at 25%. Late payment adds 0.5% per month, also capped at 25%. Interest accrues on top of both at a rate the Department sets to mirror the IRS underpayment rate.12South Carolina Legislature. South Carolina Code 12-54-25 A business owing $5,000 and filing three months late faces $750 in filing penalties before interest.
Operating without a retail license is a misdemeanor carrying up to a $200 fine, up to 30 days in jail, or both. The charge applies to individual owners and to each officer of a corporation that sells without a license or after suspension.13South Carolina Legislature. South Carolina Code 12-36-560