South Carolina Sales Tax
South Carolina Sales Tax At a Glance
State rate: 6%
Maximum combined rate: 9%
Sourcing: Destination
Tax Holidays: Back to School
Governing Body: South Carolina Department of Revenue
Streamlined Sales Tax Member: No
If your business makes sales to customers in South Carolina, you may be responsible for collecting and remitting sales tax to the state. Whether or not you need to do this depends largely on whether you have a substantial physical presence, or nexus, in the state, as well as whether or not what you’re selling is subject to sales tax under South Carolina laws.
South Carolina Sales Tax Rates
The state sales tax rate in South Carolina is 6%. Counties and municipalities can impose additional sales tax locally as well, with the maximum rate in the state currently 9% in Charleston. You can review a complete list of sales tax rates in South Carolina by municipality on the South Carolina Department of Revenue website.
If you have a physical location, and the customer purchases an item in person and takes it with them on the spot, you will charge the rate applicable at that location. If you are shipping goods to customers in South Carolina, the rate you will need to charge is usually based on the final destination of those goods, regardless of whether they originate from inside or outside the state.
A buyer who is 85 years old or older may claim a 1% exemption from state sales tax, provided that the purchase is made for his or her personal use. Proof of age must be provided at the time of the sale.
Tax Sourcing
South Carolina is a destination-based sourcing state. According to SCDOR guidelines, the sales tax rate is determined by the location where the customer takes possession of the item or where the service is delivered. If an item is shipped from an out-of-state or in-state warehouse to a customer’s address in South Carolina, the tax rate of the delivery address applies.
South Carolina Nexus
Physical Nexus
A business establishes physical nexus under SC Code § 12-36-70 if it has a physical presence inside the state. This includes:
- Maintaining an office, warehouse, retail store, fulfillment space, or inventory storage.
- Having employees, independent contractors, or sales representatives operating within the state to solicit sales or perform services.
- Leasing tangible personal property to customers located inside the state.
Economic Nexus
Following the South Dakota v. Wayfair decision, South Carolina enforces economic nexus rules for remote, out-of-state sellers:
- The Trigger: Gross revenue exceeding $100,000 from retail sales of tangible personal property, electronic products, or taxable services delivered into South Carolina during the previous or current calendar year.
- No Transaction Rule: South Carolina does not track or utilize a transaction count limit (e.g., 200 transactions will not trigger nexus on its own).
- Inclusions: Gross revenue calculations include tax-exempt sales, wholesale/resale transactions, and sales made via third-party marketplaces.
Marketplace Facilitators
Under South Carolina’s marketplace facilitator laws, platforms like Amazon, eBay, or Etsy are legally defined as the “retailer” responsible for collecting and remitting sales tax on third-party sales delivered into the state. While the marketplace handles the tax administration for those transactions, individual remote sellers must still count their marketplace sales toward their overall $100,000 economic nexus threshold.
It’s also important to note that nexus determinations are made on a fiscal year basis. So, if you have a nexus for any part of the fiscal year, you should collect sales tax on any purchases made during that time frame, even if you no longer meet the nexus requirements by the end of the period in question.
What Is Taxable in South Carolina
Tangible Goods
All retail sales, leases, or rentals of tangible personal property (physical objects that can be seen, weighed, measured, or touched) are subject to the standard sales and use tax unless a specific statutory exemption applies.
Services
South Carolina generally exempts professional, legal, or purely administrative services. However, services are taxable if they are an integral part of the production or modification of tangible personal property. Additionally, communication services (including telecommunications and cable/satellite TV access) are expressly taxable under SC Code § 12-36-910(B)(3).
Shipping and Handling
South Carolina generally exempts professional, legal, or purely administrative services. However, services are taxable if they are an integral part of the production or modification of tangible personal property. Additionally, communication services (including telecommunications and cable/satellite TV access) are expressly taxable under SC Code § 12-36-910(B)(3).
Digital Goods and Services
SaaS & Cloud Computing: Taxable. Under SC Revenue Ruling 12-1, software-as-a-service and application service provider (ASP) models are classified as taxable communication services because the end-user is granted access to use software hosted on the provider’s server.
Digital Downloads: Exempt (with exceptions). Downloaded movies, books, or prewritten software transferred entirely electronically with no physical medium are generally not taxable. However, if the digital software is preloaded onto physical hardware by the seller prior to transferring possession, the entire charge becomes part of the taxable sale.
Streaming Content: Taxable. Streaming subscriptions for video, music, or audio are classified as taxable communications services under SC Revenue Ruling 17-2.
Exemptions
Groceries: Unprepared food items matching the federal SNAP framework are exempt from the 6.0% state sales tax, though they may still be subject to local county-level option taxes.
Prescription Medicine: Prescription drugs and medical prosthetic devices prescribed by authorized medical professionals are completely exempt from both state and local sales tax.
Registration and Filing
If you have a nexus in South Carolina and sell a taxable good, you must register with the state to collect and remit that tax before you start making sales. You can do this by visiting the Department of Revenue website and filling out the online form. The cost to register is $50.
To complete the registration process, you will have to provide certain details about your business, including but not limited to:
- Business name and type
- Physical address and mailing address
- Federal Employer Identification Number or Social Security Number
- Contact Information
- Description of business activities
- Date you plan to begin selling in the state
Other information may be required as well based on the nature of your business and your specific situation.
Filing Frequencies and Deadlines
The frequency with which you’ll have to file your South Carolina state sales tax returns will depend on your average monthly tax liability. You may file annually if that average is between $0 and $16.66. Quarterly filing is required for an average tax liability of $16.67 to $100, and monthly filing is required if your monthly tax liability is over $100 on average.
Monthly Filing and Payment Due Dates
| Period End | Due Date |
|---|---|
| January 31 | February 20 |
| February 28 | March 20 |
| March 31 | April 20 |
| April 30 | May 20 |
| May 31 | June 20 |
| June 30 | July 20 |
| July 31 | August 20 |
| August 31 | September 20 |
| September 30 | October 20 |
| October 31 | November 20 |
| November 30 | December 20 |
| December 31 | January 20 |
Quarterly Filing and Payment Due Dates
| Period End | Due Date |
|---|---|
| March 31 (Q1) | April 20 |
| June 30 (Q2) | July 20 |
| September 30 (Q3) | October 20 |
| December 31 (Q4) | January 20 |
If you file annually, your return and payment will be due on January 20 of the following year.
Penalties and Interest
Failing to file a sales tax return once you’re registered to collect sales tax in South Carolina can result in a fine of 5% of the tax due if the return is filed within one month of the due date. An additional 5% will be added for each subsequent month, up to a maximum of 25%. If you file a return on time but are late with the payment, you’ll face a penalty of 0.5% for each month the payment is late.
South Carolina does require all registered businesses to submit zero returns for periods in which no sales tax was collected. Penalties will also apply if you fail to file this type of return.
Sources
- South Carolina Department of Revenue
- Nexus Creating Activities for Sales and Use Taxes
- Sales Tax Rates in South Carolina Counties by Municipality
South Carolina Sales Tax Software
As with any state, the specific rules and regulations governing who must collect sales taxes in South Carolina are subject to change at any time. Local rates also change regularly, with various municipalities adding or repealing taxes or adding exemptions. Keeping track of all of this can be challenging, especially if South Carolina is not the only state where you do business.
That’s why it’s quite helpful to have sales tax software designed to handle all of this and more. TaxTools is just such a program and tax calculator, and it provides a comprehensive solution to all your sales tax tracking and filing needs to ensure sales tax compliance. The program is designed to regularly monitor and adjust to local changes in the tax code, and it will ensure you collect tax at the appropriate rate based on the destination of the products sold, whether that’s in South Carolina or another state.
TaxTools also makes it easy to see exactly how much you owe, when your returns are due, and what your payment history looks like. You can pull up reports on various areas quickly and easily, and it will integrate smoothly with whatever eCommerce platform you use.So if you’re interested in learning more about how TaxTools can streamline your selling process and help you stay on top of local sales tax regulations, click here to learn more or sign up for a free trial today.
Last Updated June 2026