Total Range for 2025
| Base state sales tax rate | 6% | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate |
| Local rate range | 0%-3% | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate |
| Total rate range | 6%-9% | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate |
| Economic sales nexus threshold | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | |
| Transactions threshold | N/A | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate |
| Sales tax return filing due date | 20th of following month | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate |
The base state sales tax rate in South Carolina is 6%, but since the local rates range from 0-3% the total sales tax range is 6-9%.
How to calculate your sales tax rate
Use our online sales tax calculator to determine the combined state and local sales tax rate for each location where you have a physical or economic nexus. Just enter your state and ZIP code to get your sales tax rate.
Example of using the sales tax rate in a tax calculation:
You run a bakery in Charleston County (SC), which has a 1% local sales tax on top of the 6% state rate (total 7%). A customer buys a loaf of bread for $5 from your bakery.
Calculation:
- Sales tax rate: 7% (6% state + 1% Charleston County)
- Sales tax amount: $5 x 7% = $0.35
Breakdown:
- Price of bread: $5.00
- Sales tax rate: 7% and Sales tax amount: $0.35
- Total cost for customer: $5.00 + $0.35 = $5.35
Nexus: Why do you need to collect sales tax in South Carolina?
If you’re selling goods and services in South Carolina then sales tax might apply! To determine your obligation, you need to understand “nexus,” which ties businesses to states for tax purposes.
Two types of nexus exist:
- Physical Nexus: Having a physical presence, like an office, warehouse, or employees in South Carolina, triggers this type. If you do, you likely need to collect sales tax.
- Economic Nexus: This kicks in when your sales within South Carolina exceed a certain economic threshold. Even without a physical presence, surpassing this threshold requires collecting sales tax.
Services
- Generally, services are not taxable in South Carolina.
- However, there are some exceptions. For instance, communication services like phone plans, streaming services, and cloud storage are taxable.
Goods
- In South Carolina, most tangible personal property (physical goods) is taxable.
- Some exceptions include groceries, prescription drugs, and certain farm equipment.
Freight/Shipping
- Shipping and freight charges are generally taxable in South Carolina unless the shipment is exempt from sales tax itself (e.g., groceries).
Clothing
- Clothing in South Carolina is subject to sales tax
Electronics
- Electronics are taxable
SaaS
- SaaS is treated as a taxable service in South Carolina, along with other fees for accessing software.
Digital Products
- Items delivered electronically and never by a tangible means are not subject to sales tax
Software
- The taxability of software can be a bit complex. Generally, off-the-shelf software is considered tangible personal property and subject to sales tax.
- However, custom software development might be considered a service and exempt.
How to register for sales tax in South Carolina
To register for sales tax in South Carolina, you’ll need to apply for a Retail License through the South Carolina Department of Revenue (SCDOR). Here’s how:
- Online Registration:
The SCDOR recommends registering online using their MyDORWAY Business Tax Application: https://dor.sc.gov/tax/registration
This is the quickest and easiest method. You can apply for a Retail License and other business tax accounts through this portal.
- Information Needed:
During the application process, be prepared to provide information about your business, including:
- Business name, address, and contact information
- Federal Employer Identification Number (EIN)
- Date your business began or will begin operations
- Projected monthly sales and taxable sales
- Products or services you will be selling
- Processing Time:
Allow up to 5 business days for the SCDOR to process your application and notify you by email of the approval.
How to collect sales tax in South Carolina
Here’s how to collect sales tax in South Carolina::
- Collect the Sales Tax:
- At the point of sale, you need to collect the appropriate sales tax amount from your customer on top of the sales price of the taxable goods or services.
- Recordkeeping:
- It’s crucial to maintain accurate records of your sales transactions. This includes details like the date, location, type of item sold, sales price, and the amount of sales tax collected for each transaction.
How to get a sales tax permit/license in South Carolina?
Method 1: Online Registration (Recommended)
The South Carolina Department of Revenue (SCDOR) recommends applying for your Retail License online through their MyDORWAY Business Tax Application.
Method 2: Mail or In-Person
While online registration is preferred, you can also submit a paper application by mail or visit an SCDOR office in person.
When are South Carolina’s sales tax returns due?
South Carolina’s sales tax returns are due on the 20th day of the month following the reporting period.
If the due date falls on a weekend or holiday, the filing is then due on the next business day.
Is anyone exempt from sales tax in South Carolina?
Exempt Purchases:
- Groceries: Most unprepared food items for human consumption are exempt from sales tax. However, prepared foods and restaurant meals are generally taxable.
- Prescription drugs and medical equipment: These are typically exempt from sales tax.
- Certain farm equipment: Machinery and equipment used directly in farm production might be exempt.
Exempt Entities:
- Government agencies: Purchases made by federal, state, and local government agencies for governmental use are usually exempt.
- Certain non-profit organizations: Non-profit organizations may be exempt from sales tax on purchases made for charitable purposes. However, they are still liable for sales tax on items they purchase for their own use.
- Religious organizations: Religious organizations are generally exempt from sales tax on purchases made for religious purposes.
