South Carolina charges a 6% state sales tax on most retail sales of tangible goods, and county-level add-ons can raise the combined rate to as much as 9%.1South Carolina Department of Revenue. Sales and Use Tax Index The South Carolina Department of Revenue (SCDOR) administers the tax, licenses retailers, and audits returns. What you owe, what’s exempt, and what you have to file depends on whether you’re buying or selling and where the sale takes place.
State and Local Rates
The base state rate is 6% of the gross proceeds of a retail sale.2South Carolina Department of Revenue. Chapter 2 – Sales Tax Impositions Counties can add their own taxes by voter referendum, and these stack. The most common are a Local Option Sales Tax, a 1% Capital Project Sales Tax for infrastructure, a Transportation Sales Tax, and a 1% School District Tax.3South Carolina Department of Revenue. Local Sales Taxes
Combined rates commonly land at 7%, 8%, or 9% depending on the county. The applicable rate is set by where the sale takes place, not where the seller is headquartered. Sellers operating in multiple counties have to track each location’s combined rate.
What’s Taxed
Sales tax applies to retail sales of tangible personal property: anything you can see, touch, weigh, or measure.4South Carolina Department of Revenue. Sales Tax Furniture, electronics, clothing, building materials, prepared food, and restaurant meals are all taxable at the full state and local rate.
South Carolina does not broadly tax services, but it does tax communication-related services and certain digital products under SC Code Sections 12-36-910(B)(3) and 12-36-1310(B)(3):
- Telephone services
- Automated answering services
- Fax transmission services
- Database access transmission services
- Streaming services
- Cloud-based services, including software as a service (SaaS)
The SCDOR has confirmed that SaaS accessed through a web browser counts, and both business-to-consumer and business-to-business transactions are taxable.4South Carolina Department of Revenue. Sales Tax Professional services like accounting, legal work, and consulting remain exempt.
Installation charges billed alongside a taxable product escape tax only when the charge is stated separately on the customer’s invoice and the amount is reasonable based on the seller’s books. Miss either condition and the entire installation charge becomes part of the taxable price.
What’s Exempt
SC Code Section 12-36-2120 lists dozens of full exemptions from state sales and use tax.5South Carolina Legislature. South Carolina Code 12-36-2120 The exemptions most people run into:
Groceries. Unprepared food that qualifies for purchase with USDA food stamps is exempt from the 6% state tax. The exemption does not automatically extend to local sales taxes, so counties may still charge their local percentage on groceries unless the local tax law specifically exempts them.6South Carolina Department of Revenue. Chapter 21 – Unprepared Food Exemption Depending on the county, you might pay 1% or 2% on groceries or nothing at all. Prepared and hot deli food is fully taxable.
Prescription medicine and medical supplies. Prescription medicines and prosthetic devices are exempt, along with insulin, blood glucose meters, testing strips, and similar diabetic supplies purchased under a physician’s authorization. Disposable medical supplies dispensed by a pharmacist for home use under an individual prescription also qualify.
Agricultural inputs. Livestock, animal feed used for poultry and livestock production, seed, fertilizer, and insecticides are exempt.
Inventory for resale. If you buy goods to resell, lease, or rent, you can buy them tax-free by giving your vendor a completed resale certificate. The SCDOR publishes Form ST-8A, though any document with the same information works.7South Carolina Department of Revenue. Resale Certificate – Form ST-8A The certificate must include your South Carolina retail license number; an SSN, EIN, or Use Tax registration number won’t substitute. If you later pull inventory for personal use, you owe tax on its fair market value and must report it as a withdrawal from stock. Misusing a resale certificate to dodge tax triggers a penalty of 5% per month on the unpaid tax, up to 50%.
Tax-Free Weekend
South Carolina holds a 72-hour sales tax holiday every August, starting at 12:01 a.m. on the first Friday and running through midnight Sunday. In 2026, it falls on August 7–9.8South Carolina Department of Revenue. Tax Free Weekend Shoppers pay no state or local sales tax on eligible items:
- Clothing and footwear
- School supplies used for classroom or homework assignments
- Computers, printers, and software (computer parts and accessories qualify only when sold as a package with a computer)
- Certain bed and bath items such as sheets, towels, and pillows
There are no price caps on eligible items, but items bought for business use and layaway purchases are not covered. All retailers selling eligible items must participate, including online sellers shipping into South Carolina; they cannot collect sales tax on qualifying purchases during the holiday.
Getting a Retail License
Every retailer must obtain a South Carolina retail license before making any taxable sales. You need a separate license for each physical location, and each license costs $50 and is nonrefundable.9South Carolina Legislature. South Carolina Code 12-36-510 – Retail License Requirements, License Tax, Special Events Applications go through the SCDOR’s online portal, MyDORWAY.10South Carolina Department of Revenue. Licensing – Retail License
Selling at retail without a license, or after your license has been suspended, is a misdemeanor punishable by a fine of up to $200, up to 30 days in jail, or both.11South Carolina Legislature. South Carolina Code 12-36-560 – Operation of Business Without Retail License
Remote Sellers and Marketplaces
Out-of-state sellers must collect and remit South Carolina sales tax once their gross revenue from sales delivered into the state exceeds $100,000 in the previous or current calendar year.12South Carolina Department of Revenue. Marketplace Facilitators and Third Parties Guidance The threshold covers tangible personal property, electronically transferred products, and taxable services. Once you cross it, collection starts on the first day of the second calendar month after the threshold was met.
Marketplace facilitators (platforms that list products, process payments, or handle fulfillment for third-party sellers) are responsible for collecting and remitting the tax on sales they facilitate.13South Carolina Legislature. South Carolina Code 12-36-71 – Marketplace Facilitator If you sell through a platform like Amazon or Etsy that collects the tax for you, you still have to file returns with the SCDOR, even if every return shows zero tax due.
Filing and Paying
New Sales and Use Tax accounts default to monthly filing. You can request quarterly or annual filing through MyDORWAY or by emailing salestax@dor.sc.gov, subject to SCDOR approval. Every return and payment is due by the 20th of the month following the close of the reporting period.14South Carolina Business One Stop. South Carolina Sales Tax
Businesses with a South Carolina tax liability of $15,000 or more per filing period must file and pay electronically.4South Carolina Department of Revenue. Sales Tax
Timely-Filer Discount
If the return and full payment arrive by the due date, you keep a percentage of the tax collected:
- 3% if the tax due is under $100
- 2% if the tax due is $100 or more
The discount is capped at $3,000 per state fiscal year for most filers, or $3,100 if you file electronically. Voluntary remote sellers who register even though they fall below the economic nexus threshold have a higher cap of $10,000.15South Carolina Legislature. South Carolina Code of Laws – Title 12 – Chapter 36 – South Carolina Sales and Use Tax Act
Use Tax
South Carolina charges use tax at the same 6% state rate, plus applicable local taxes, on tangible personal property purchased from out-of-state sellers when no South Carolina sales tax was collected.1South Carolina Department of Revenue. Sales and Use Tax Index This typically comes up with online orders from retailers that don’t collect South Carolina tax or purchases you make while traveling and bring home.
If you paid sales tax in the other state, you get a credit for what was already paid and only owe the difference if the other state’s rate was lower.16South Carolina Legislature. South Carolina Code 12-36-1310 – Imposition of Tax, Rate, Applicability, Credit for Tax Paid in Another State Businesses report use tax on the same combined Sales and Use Tax return they already file through MyDORWAY.17South Carolina Department of Revenue. Use Tax Individuals without a retail license generally report use tax on their annual South Carolina income tax return.
Penalties and Interest
Late filing and late payment are separate violations with separate penalties:
- Late filing: 5% of the unpaid tax for the first month or fraction of a month, plus 5% for each additional month, capped at 25% of the tax due.
- Late payment: 0.5% of the unpaid tax per month, also capped at 25%.
- Negligence: if the SCDOR finds the underpayment resulted from careless or reckless disregard of the rules, an additional 5% of the underpayment plus 50% of the interest owed.
Interest accrues on top of penalties at a rate matching the IRS underpayment rate, which adjusts quarterly.18South Carolina Legislature. South Carolina Code 12-54-43 – Civil Penalties The SCDOR also audits returns against IRS, other state agency, and third-party data, and any undercollected tax found in an audit is owed by the business along with penalties and interest.19South Carolina Department of Revenue. Audit Process