From boutique retailers on King Street in Charleston to food trucks in Columbia and specialty shops in Greenville, South Carolina businesses face sales tax rules that vary by location and product type. Understanding how state and local sales taxes work is essential for pricing correctly, staying compliant, and avoiding costly penalties. This guide breaks South Carolina sales tax into practical steps so you can focus on running your business, not deciphering the tax code.
What is the South Carolina sales tax?
South Carolina imposes a statewide sales tax rate of 6% on retail sales of tangible personal property and certain services. Local jurisdictions may add their own sales and use taxes, which means the total rate depends on where the sale occurs.
Examples of combined state and local rates include:
- Charleston: 9%, reflecting multiple local option taxes
- Columbia: 8%, including Richland County local taxes
- Greenville: 8%, with county-level additions
The South Carolina Department of Revenue explains how local option taxes are layered on top of the state rate in its Sales and Use Tax Manual.
Note: Local rates frequently change. Always verify the current, specific rate for your business address using the official South Carolina DOR website.
How to calculate South Carolina sales tax?
The basic formula is straightforward:
Sales price × total sales tax rate = sales tax due
If a Greenville retailer sells an item for $100 and the combined rate is 8%, the calculation looks like this:
$100 × 0.08 = $8 in sales tax
Total amount collected from the customer: $108
Accurate rate determination matters because the rate is based on the point of sale or delivery location, not just where your business is registered.
Use our pre-sales tax calculator
If you’re running a restaurant, café, retailer, or service business, you may want to display a price that already includes the sales tax. A reverse sales tax calculator helps determine the taxable amount and tax portion for a tax-inclusive price.
For example, if a Charleston café wants to sell a croissant for $5 and the local sales tax rate is 9%, a reverse calculation can identify that they need to enter $4.59 as the price in their POS. Tools like the reverse sales tax calculator simplify this step and reduce math errors.
What is subject to sales tax in South Carolina?
In general, sales tax applies to most tangible personal property. Common taxable items include:
- Clothing and footwear
- Furniture and home décor
- Electronics and appliances
- Digital media
- Jewelry
- Cosmetics
- Prepared food and beverages
- Alcoholic beverages
- Vehicles and boats
A marketplace facilitator is responsible for remitting state and local sales and use tax for all products sold via its marketplace.
The Department of Revenue outlines taxable and non-taxable items in detail in the Sales and Use Tax Manual.
Sales and use taxes for the Catawba Nation
The Catawba Tribal Tax applies to the Catawba Indian Reservation located in York County. The Tribal Sales Tax is 7%, and is authorized under SC Code Section 27-16-1
Accommodations furnished on the Reservation are subject to the tribal sales tax at a rate of 8% for accommodations furnished in York County. Additional guest charges imposed on the Reservation are subject to the tribal sales tax at a rate of 7% in York County.
The Tribal Sales Tax exceptions are described in the Exemptions section below.
NOTE: The tribal sales and use tax rate may increase or decrease as the total state and local sales and use tax rates change in York County in the future.
Economic nexus
If your business sells to customers in South Carolina but does not have a physical location there, you are referred to as a “remote seller” and may still have to collect and file South Carolina sales tax.
If your total sales shipped or delivered into South Carolina go over $100,000 in either the current or previous year, you have a tax obligation in the state. This is called economic nexus.
Once you cross that $100,000 threshold, you must:
- Register for a South Carolina retail license, and
- Collect and send South Carolina sales and use tax to the state on taxable sales.
In short, you do not need a store, office, or employees in South Carolina to owe sales tax. Selling enough into the state triggers the requirement.
Does South Carolina charge sales tax on services?
South Carolina taxes fewer services than many states, but some services are taxable. Most professional services, such as legal or accounting services, are not subject to sales tax. Taxable service examples include:
- Laundry and dry cleaning, including repair, alteration, pick-up, and delivery
- Retail electricity
- Communications and streaming services
- Accommodations
Service-based businesses should confirm their specific activity with current guidance from the SC Department of Revenue.
South Carolina sales tax on food
Unprepared grocery food intended for home consumption and eligible for purchase with the U.S. Department of Agriculture food coupons (“food stamps”) is generally exempt from the state sales tax. Local taxes may still apply in some jurisdictions.
Prepared food sold by restaurants, cafés, and food trucks is taxable. Other taxable examples listed in the Sales and Use Tax Manual include:
- Alcoholic beverages
- Ready-to-drink hot beverages and food
- Tobacco
- Hot and cold food to be eaten at a lunch counter, in a dining area, anywhere else in the store, or in a nearby area, such as a mall food court
- Vitamins and medicines
- Pet food
DAVO by Avalara helps restaurants, cafés, and food trucks automatically set aside sales tax daily, even when operating in multiple cities with different local rates. This is especially helpful for restaurant groups expanding across Charleston, Columbia, and the surrounding counties.
Make your sales tax less taxing with DAVO.
What is exempt from sales tax in South Carolina?
Common sales tax exemptions include:
- Unprepared grocery food at the state level
- Prescription medications
- Certain medical devices
- Sales for resale with a valid resale certificate, Form ST-8A
- Purchases made by the Catawba Tribe for tribal government functions until November 28, 2092.
- Catawba Tribe member-made pottery and artifacts
Exemptions are narrowly defined, so documentation matters.
How to manage tax-exempt sales in South Carolina?
Businesses must collect and retain valid exemption or resale certificates (i.e., Form ST-8A) from customers. Review certificates for completeness and verify retail license numbers on the SC DOR MyDORWAY website. Keep the certificate on file in case of an audit. Without proper documentation, the seller may still be liable for the tax.
Remember, you must report exempt sales on the South Carolina Sales and Use Tax return, even if no tax is collected.
South Carolina sales tax holiday
South Carolina offers an annual three-day sales tax holiday (or “Tax Free Weekend”) typically starting the first Friday morning in August. During the holiday, qualifying items are exempt from both state and local sales taxes. As long as an item is eligible, it is tax-free for use by any age, from infant to senior citizen, to new or used items, and to items of any dollar amount, whether purchased in-store or online.
Eligible items include:
- Clothing and footwear
- School supplies
- Certain bed and bath items
- Computers, printers, and software
- Books used for school purposes
- Fabric, thread, zippers, buttons, and other sewing materials
Ineligible items include:
- Clothing and footwear rentals (e.g., tuxedo rentals, bowling shoe rentals)
- Cosmetics
- Eyewear (prescription or nonprescription)
- Furniture
- Jewelry, wallets, and watches
- Computer monitor, keyboard, or mouse by itself
- Smartphones, cell phones, and other handheld devices
The Department of Revenue publishes official dates, eligible items, and Frequently Asked Questions before July 10 each year.
How to register for a South Carolina sales tax license?
Businesses must obtain a sales tax license (“retail license”) before making any sales of taxed goods. This includes internet sales and infrequent sales made in South Carolina. Register through the SC DOR MyDORWAY portal: select “Business Tax Application.” Applicants will need:
- Federal EIN or Social Security number
- Address
- Account start date
- Business entity details
- NAICS (North American Industry Classification System) code
- Estimated monthly sales
Once approved, most businesses receive their sales tax account number within a few business days.
Note: If you have more than one business location, you must have a separate retail license for each location. A retail license is also required for remote sellers with economic nexus.
How to file South Carolina sales tax?
You have options for how you file your South Carolina Sales & Use tax.
If your South Carolina tax liability is $15,000 or more per filing period, you must file and pay electronically, preferably through
Consolidated sales tax return
If you have more than one business location, you can apply to use the Consolidated Tax Return through MyDORWAY. It’s one preformatted file with separate entries for each location. After approval, you will receive access to the Consolidated Sales Tax Return via your MyDORWAY account.
Third-party software
You can also use a third-party software, such as DAVO, to electronically file your Sales & Use Tax return via the SCDOR’s Sales XML Program. You must use one of the SCDOR’s certified software vendors to participate in the program.
File by mail
Filing by paper
You must file a return even if no tax is due. A zero return is still required to remain compliant.
If you have specific questions and a MyDORWAY account, you can send a MyDORWAY web message. You can also email SalesTax@dor.sc.gov.
How to pay South Carolina sales tax?
Payments can be made electronically through MyDORWAY. Forms of online payment include:
- Automated Clearing House (ACH) credit
- Request ACH Credit Approval through MyDORWAY. You will receive ACH Credit Banking Instructions.
- Instruct your financial institution to initiate an ACH transfer to the SCDOR’s bank.
- Your financial institution may charge a transaction fee. Fees vary.
- ACH debit (also known as e-check or Electronic Funds Withdrawal) from your checking or savings account
- The ACH Debit option is free.
- Credit card:
(Visa, Mastercard, American Express, and Discover - The payment provider may charge additional processing fees for credit card payments.
- Paper check
The SCDOR only accepts paper checks drawn from a United States bank. Paper checks may be converted to a debit (ACH) transaction. The payment will show as an electronic payment on bank statements. - Follow the instructions on your notice or form for mailing instructions.
DAVO automates the payment process by remitting sales tax on your behalf, on time and in full, eliminating missed deadlines and manual payment steps.
South Carolina sales tax due dates
Sales and Use Tax returns, including Consolidated Sales Tax Returns, are due monthly by the 20th of the month following the month you collect the taxes (i.e., February 20, for the period ending January 31).
You can request approval to file quarterly or annually. Submit your request with a MyDORWAY web message or email your request to SalesTax@dor.sc.gov.
- Quarterly due dates fall on the 20th following the end of the previous quarter (i.e., April 20, for the period ending March 31).
- The annual filing due date is January 20 for the previous year.
Remote sellers who establish economic nexus with South Carolina must remit the sales and use tax beginning on the first day of the second calendar month after economic nexus is established.
If the last day of a specified period is a Saturday, Sunday, or a legal holiday, the due date moves to the next business day.
South Carolina vendor discount
South Carolina offers a discount if you file and pay your state sales tax on time.
- If the total (state and local) tax due is less than $100, the discount is 3% of the total tax due.
- If the total tax due is $100 or more, the discount is 2%.
- The maximum discount allowed per taxpayer during the state’s fiscal year (July 1 – June 30) is $3,000 for paper filers, or a maximum of $3,100 for electronic filers.
- Remote sellers who do not have a physical or economic nexus, but voluntarily register to collect and remit the South Carolina sales and use tax, are allowed a maximum discount of $10,000 each fiscal year.
If you operate in other states, see where similar vendor compensation discounts may apply. DAVO returns this collection allowance to the business in full, which can sometimes offset the entire subscription cost.
What is the South Carolina sales tax late payment penalty?
Late filings may result in penalties and interest. SC Code Sections 12-54-43 apply a penalty of 5% of the unpaid tax, with an additional 5% for each month the return is late, up to a maximum of 25% of the unpaid tax.
If you apply for and receive a filing extension, South Carolina applies a penalty of one-half of 1% of the amount of the tax, with an additional one-half of 1% for each additional month.
A Penalty and Interest Calculator is available on MyDORWAY.
Even short delays can add up quickly.
How DAVO can help with South Carolina sales tax
Whether you’re a retailer in Charleston’s tourism corridors, Columbia’s dining scene, or Greenville’s growing retail districts, sales tax compliance is a constant administrative task. DAVO helps by automating collection, filing, and payment so you can stay compliant without adding hours of back-office work. If you are ready to spend less time worrying about sales tax and more time serving your customers, DAVO is built to carry that burden for you – guaranteed.
Choose your POS system to get started with DAVO.
