Tax free in South Carolina means two different things. Once a year, the state waives sales tax on clothing, school supplies, computers, and bed and bath items for a 72-hour weekend — in 2026, that runs from 12:01 a.m. Friday, August 7 through midnight Sunday, August 9. Year-round, the state permanently exempts groceries and prescription medication from the six percent state sales tax, excludes Social Security benefits from state income tax, and offers a $50,000 homestead exemption on property taxes for homeowners who are 65 or older, totally and permanently disabled, or legally blind.
The August Sales Tax Holiday
State law fixes the holiday as the 72 hours starting at 12:01 a.m. on the first Friday in August and ending at midnight Sunday.1South Carolina Legislature. South Carolina Code 12-36-2120 – Exemptions from Sales Tax For 2026, those dates are August 7 through 9. The exemption covers both the state’s six percent sales tax and any local sales taxes that would normally apply, and it works for in-store and online purchases alike.2South Carolina Department of Revenue. South Carolina’s Tax Free Weekend
There is no price cap in any category. A $20 backpack and a $2,000 laptop both ring up tax-free, and items can be new or used. Four groups qualify:
- Clothing and accessories — shirts, pants, coats, uniforms, sleepwear, formal wear, hats, scarves, belts, hosiery, and handbags.1South Carolina Legislature. South Carolina Code 12-36-2120 – Exemptions from Sales Tax
- Footwear — shoes, boots, sandals, slippers, cleats, and athletic footwear.
- School supplies — pens, pencils, paper, binders, notebooks, books, calculators, backpacks, lunchboxes, art supplies, scissors, and rulers.3South Carolina Department of Revenue. Sales Tax Holiday – Exempt and Non-Exempt Items
- Computers and bed and bath items — desktops, laptops, tablets with a CPU, printers, printer supplies, software, bed linens, sheet sets, comforters, blankets, pillows, pillowcases, bath towels, washcloths, shower curtains, and bath rugs.1South Carolina Legislature. South Carolina Code 12-36-2120 – Exemptions from Sales Tax
Computer peripherals like a monitor, keyboard, mouse, and speakers qualify when bought as a package with the computer itself. Warranty and service agreements purchased alongside an eligible computer also ride the exemption.3South Carolina Department of Revenue. Sales Tax Holiday – Exempt and Non-Exempt Items
What Still Gets Taxed That Weekend
Several items shoppers expect to qualify don’t. Jewelry, watches (including smartwatches), wallets, cosmetics, and eyewear remain fully taxable.1South Carolina Legislature. South Carolina Code 12-36-2120 – Exemptions from Sales Tax Furniture is excluded, so a dorm desk or mattress still carries tax. Smartphones, e-readers, and standalone music or video players are taxable too — the computer exemption only covers devices with a CPU meant for personal computing.3South Carolina Department of Revenue. Sales Tax Holiday – Exempt and Non-Exempt Items
Three other rules catch people out:
- Layaway is never exempt. Items on layaway or any similar deferred-payment-and-delivery plan do not qualify, no matter when you pay or pick up.4South Carolina Department of Revenue. Tax Free Weekend
- Business purchases don’t count. Anything bought for use in a trade or business is taxable even if the item itself would otherwise qualify.
- Rentals are excluded. Renting a tuxedo or bowling shoes during the weekend still incurs full tax.
Groceries and Prescriptions, Year-Round
Unprepared food that could be purchased with USDA food benefits (SNAP-eligible groceries) is exempt from the state’s six percent sales tax every day of the year.1South Carolina Legislature. South Carolina Code 12-36-2120 – Exemptions from Sales Tax That covers meat, produce, dairy, bread, and canned goods you’d cook at home, but not prepared meals or restaurant food. One important limit: the exemption only applies to the state tax. Counties that have adopted a local option sales tax can still collect it on groceries, so your receipt may show a small local charge.5South Carolina Department of Revenue. South Carolina Department of Revenue – Chapter 9 – Exemptions
Prescription drugs and prosthetic devices are exempt from sales tax all year. Durable medical equipment prescribed by a healthcare provider, such as wheelchairs, oxygen equipment, and hospital beds, also qualifies. Unlike the grocery exemption, the prescription and medical equipment exemptions apply to both state and local sales taxes.
Retirement Income and Social Security
Social Security benefits are fully exempt from South Carolina income tax. If you collect Social Security or railroad retirement benefits, none of it appears on your state return — even if a portion is taxed federally.6South Carolina Department of Revenue. Retirees – Lower Your Individual Income Tax Bill With These Five Tips Military retirement pay gets its own deduction under Section 12-6-1171.
On top of that, South Carolina offers two overlapping deductions for other retirement income. Taxpayers under 65 receiving distributions from a qualifying plan (401(k), IRA, 403(b), 457, or government pension) can deduct up to $3,000 a year. At 65, that retirement-specific deduction rises to $10,000.7South Carolina Legislature. South Carolina Code 12-6-1170 – Retirement Income Deduction
A second deduction, worth up to $15,000, kicks in at 65 and can be applied against any South Carolina taxable income, not just retirement distributions. You have to subtract whatever you already claimed under the retirement-specific deduction, so a retiree who deducts $10,000 in pension income has $5,000 of this second deduction left for wages, investment income, or rental income. Married couples where both spouses are 65 or older can each claim the $15,000, up to $30,000 combined. The practical result: a retiree at 65 or older can shelter up to $15,000 in total between the two deductions, on top of the Social Security exemption.
The $50,000 Homestead Exemption
Homeowners who are 65 or older, totally and permanently disabled, or legally blind can exempt the first $50,000 of their home’s fair market value from all county, municipal, school, and special assessment property taxes.8South Carolina Legislature. South Carolina Code 12-37-250 – Homestead Exemption You must have been a South Carolina resident for at least one year, hold fee simple title or a life estate, and use the home as your legal residence.
Apply through your county auditor’s office. You only need to apply once — the exemption stays in place as long as you still qualify and live in the same home. If you move, reapply at the new address. For a home with a fair market value of $150,000, the exemption removes the first $50,000 from the tax calculation, which can save several hundred dollars annually depending on your county’s millage rate.9South Carolina Department of Revenue. Local Government Services
What Isn’t Tax-Free: Vehicles
South Carolina charges an annual personal property tax on motor vehicles. Passenger vehicles are assessed at six percent of fair market value, and that assessed value is multiplied by your county’s millage rate to produce the bill. No general exemption applies the way it does for groceries or Social Security, and the homestead exemption covers real property only, not vehicles. If you’re moving from a state without an annual vehicle tax, build this recurring cost into your budget.