South Carolina Sales Tax and Invoicing Rules for 2026

State sales tax rate

South Carolina imposes a 6% state sales and use tax. Counties may levy an additional 1% to 3% in local option taxes (capital project, transportation, education), bringing combined rates to 7%–9%.

Greenville County has a combined rate around 7%. Richland County (Columbia) reaches 8%. Charleston County sits at approximately 9%.

South Carolina uses destination-based sourcing as a Streamlined Sales Tax member state.

Nexus rules

Physical nexus applies through offices, employees, inventory, or property in South Carolina.

Economic nexus triggers at $100,000 in gross revenue from South Carolina sales in the current or prior calendar year. There is no transaction count threshold.

Marketplace facilitators must collect and remit on behalf of third-party sellers. South Carolina is a full SST member state, enabling simplified registration through the Streamlined system.

Invoice requirements

The South Carolina Department of Revenue (SCDOR) requires sellers to maintain records of all transactions. Invoices should include:

• Seller's name, address, and retail license number
• Date of sale
• Buyer details
• Description of goods or services
• Sale price
• Tax rate and tax amount (separately stated)
• Total

For items subject to the maximum tax cap, note this on the invoice. For exempt sales, retain the buyer's Exemption Certificate (Form ST-8A for resale). Records should be kept for at least three years from the date the tax was due.

Exemptions and special cases

South Carolina has a unique $300 maximum tax provision — certain items including motor vehicles, aircraft, boats, manufactured homes, and certain heavy equipment are subject to a maximum sales tax of $300 per item regardless of the purchase price.

Groceries (unprepared food) are exempt from state sales tax but subject to local taxes. Prescription drugs are exempt. Clothing is fully taxable at the standard rate.

Manufacturing machinery is exempt. SaaS is generally not taxable — South Carolina has not broadly classified cloud-based services as tangible personal property. However, prewritten software delivered electronically is taxable.

South Carolina holds an annual sales tax holiday for back-to-school clothing, computers, and school supplies.

Filing frequency and deadlines

Filing frequency depends on liability:

• Monthly — most businesses
• Quarterly — smaller sellers
• Annually — very small sellers

Monthly returns are due the 20th of the following month. Quarterly returns are due the 20th of the month following the quarter. Annual returns are due January 20.

South Carolina offers a timely filing discount of 3% of tax due (up to $3,000 per fiscal year). Electronic filing is required for businesses with an annual liability of $15,000 or more.

Penalties for non-compliance

Late filing incurs a 5% penalty per month (up to 25%) on unpaid tax. A $25 minimum penalty applies.

Interest accrues at the rate determined by the SCDOR. Failure to obtain a retail license before selling carries additional penalties. Back-assessments apply when nexus existed but the seller was not registered. South Carolina participates in SST audit programs.

FAQ

What is the $300 maximum tax?

South Carolina caps the sales tax at $300 on certain high-value items including motor vehicles, motorcycles, boats, aircraft, and manufactured homes. No matter how expensive the item, the maximum state sales tax is $300. Local taxes may still apply.

Are groceries fully exempt in South Carolina?

Groceries are exempt from the 6% state sales tax. However, local option taxes (1%–3%) still apply to grocery purchases. So you will still see some tax on food items — just not the state portion.

What is the timely filing discount?

South Carolina allows sellers who file and pay on time to retain 3% of the tax collected (capped at $3,000 per fiscal year) as compensation for collecting tax. This is one of the more generous vendor discounts among U.S. states.

Look up the right combined rate for South Carolina with InvoiceQuickly's tax rate tool.

Step-by-step: register and start collecting in South Carolina

1. Determine nexus — physical presence creates immediate nexus. Economic nexus: $100,000 in gross sales to South Carolina buyers in the prior or current calendar year. SC removed the 200-transaction threshold in 2024.
2. Register via MyDORWAY — apply for a sales and use tax license through the SC Department of Revenue's online portal. Processing is typically 5–7 business days, with a $50 license fee per location.
3. Configure state 6% + local 1%–3% — South Carolina state rate is 6%, plus local option taxes of 1%–3% by county/city. Combined rates run 6%–9%. Education capital improvement, transportation, and capital project surtaxes vary by jurisdiction.
4. Capture ST-8 exemption certificates — Form ST-8 (Resale Certificate) for resellers; Form ST-9 for non-profit organizations. SST certificates accepted for streamlined-state buyers.
5. File on assigned schedule via MyDORWAY — frequency varies (monthly for most sellers, quarterly for smaller operations). Returns due the 20th of the month following the period.

Real South Carolina compliance situations

• A Charleston-based retailer charges 9% combined (6% state + 1% local + 1% transportation + 1% education). Tourist-heavy areas like Charleston, Myrtle Beach, and Hilton Head have higher combined rates than rural counties — accurate ZIP-based rate is essential.
• A Columbia e-commerce store sells statewide. They confirmed SaaS is non-taxable in SC and configured invoices to exempt SaaS line items. Tangible goods bundled with software still trigger tax — unbundling protected them in audit.
• A Greenville restaurant charges combined rate on prepared food, plus a 2% hospitality fee in some municipalities (Greenville, Myrtle Beach). The hospitality fee is separate from sales tax but must be itemized — auditors flag combined hospitality + sales tax line items.

More South Carolina FAQs

Does South Carolina charge sales tax on labor and services? Most professional services are not taxable. Repair services, dry cleaning, laundering, and certain other enumerated services are taxable. Construction labor is not taxable but materials are (with the contractor often as the consumer).

What's the SC max tax on motor vehicles? South Carolina caps sales tax on motor vehicle purchases at $500 maximum (the IMF — Infrastructure Maintenance Fee). This is a unique SC structure compared to most states.

Does SC have a sales tax holiday? Yes — South Carolina holds an annual 3-day "Tax Free Weekend" in early August: clothing, school supplies, computers, printers, bedding, and bath linens are exempt. No price cap on most items during the holiday.

What about food and groceries? Unprepared food (groceries) is exempt from the 6% state portion but subject to local taxes (1%–3%). Prepared food sold for immediate consumption is taxed at the full combined rate.