In this article
- What is sales tax in South Carolina?
- What is taxable in South Carolina?
- Exemptions and resale certificates in South Carolina
- Who must collect sales tax in South Carolina?
- Sales tax rates in South Carolina
- How to calculate sales tax in South Carolina
- South Carolina Sales Tax Holiday
- How to register for a South Carolina sales tax permit
- Filing and payment in South Carolina
- Penalties and compliance risks in South Carolina
- How Quaderno helps with South Carolina sales tax
- Sales tax guides for neighboring states
South Carolina has a 6% state sales tax with county-level local taxes of 1% to 3%, bringing the maximum combined rate to 9%. You must register if your annual sales into South Carolina exceed $100,000. SaaS is taxable as a communications service, but most downloaded digital products are not taxable.
Whether you sell software, physical goods, or digital content into the Palmetto State, this guide covers everything you need to know — rates, taxability, nexus rules, registration, and filing.
What is sales tax in South Carolina?
South Carolina imposes a 6% state sales tax on most retail sales of tangible personal property and certain taxable services. Counties can add 1% to 3% in local option taxes, bringing the combined maximum to 9%.
South Carolina uses a destination-based sales tax system. You charge the tax rate based on your buyer's location, meaning you need to know the combined rate at the customer's county.
What is taxable in South Carolina?
Most retail sales of tangible personal property are subject to South Carolina sales tax. The state also taxes certain services, including repair services and some communications services. Always verify with the South Carolina Department of Revenue (SCDOR) for your specific product or service category.
Digital products and SaaS taxability in South Carolina
South Carolina's treatment of digital goods and SaaS is notably different from most states:
- SaaS: Taxable. South Carolina classifies SaaS and cloud-based software access as a communications service, which is subject to sales tax. When a customer accesses software remotely without receiving a copy, it qualifies as a taxable service.
- Downloaded digital products: Generally not taxable. South Carolina does not tax electronically delivered products (e-books, downloaded music, downloaded software) in most circumstances, because no tangible personal property changes hands.
- Streaming services: May be taxable if classified as a communications service. Consult SCDOR for specific categories.
This combination — SaaS taxable but downloaded digital goods exempt — is the opposite of what many businesses expect and is a common compliance risk.
Sales tax on shipping charges in South Carolina
South Carolina taxes shipping and handling charges when the items being delivered are themselves taxable. If the goods are exempt, the shipping charges are also exempt. For mixed shipments of taxable and non-taxable goods, allocate the shipping charge proportionally.
Exemptions and resale certificates in South Carolina
South Carolina provides several important sales tax exemptions. Key non-taxable items include:
- Unprepared food sold for home consumption (exempt from state tax; some counties may still apply a local tax)
- Prescription drugs and certain medical equipment
- Agricultural products, supplies, and equipment used in farming
- Manufacturing machinery and equipment used in production
- Items purchased for resale, with a valid South Carolina Resale Certificate (ST-8)
- Sales to qualifying exempt organizations (religious, charitable, educational)
To claim a resale exemption, the buyer must provide a valid ST-8 certificate at the time of purchase. See SCDOR for the full exemption list.
Who must collect sales tax in South Carolina?
Nexus is the connection between your business and South Carolina that creates a sales tax obligation. If you have nexus, you must register, collect, and remit sales tax on taxable South Carolina sales.
Economic nexus in South Carolina
You have economic nexus in South Carolina if your gross sales into the state exceed $100,000 in a calendar year. Unlike many other states, South Carolina does not have a transaction-count threshold — only the dollar amount matters.
To learn more, see the Ultimate Guide to US Economic Nexus.
Physical nexus in South Carolina
| Type of nexus | Definition |
|---|---|
| Physical presence | Having a store, office, warehouse, distribution center, or other business location in South Carolina. |
| Employees or representatives | Having employees, agents, or contractors working on your behalf in South Carolina. |
| Inventory | Maintaining inventory in South Carolina, including through a third-party warehouse or fulfillment center. |
| Delivery of goods | Regularly delivering goods into South Carolina using your own vehicles. |
| Leasing property | Owning or leasing real or tangible personal property within the state. |
Marketplace facilitator rules in South Carolina
Marketplace facilitators operating in South Carolina are required to collect, report, and remit sales tax on behalf of marketplace sellers. Sales made through a qualifying marketplace do not count toward your $100,000 economic nexus threshold.
See our state-by-state guide to marketplace facilitator laws for more information.
Sales tax rates in South Carolina
South Carolina has a 6% state rate, with county-level local option taxes bringing the maximum combined rate to 9%.
How South Carolina sales tax is structured
| Level | Description |
|---|---|
| State sales tax | The statewide base rate is 6%. |
| County local option tax | Counties can add 1% to 3% in local option sales taxes. Not all counties have local taxes. |
| City tax | South Carolina cities generally do not levy their own sales taxes separately from the county system. |
South Carolina sales tax by county
Combined rates vary by county. Examples include:
| County | Combined rate | Breakdown |
|---|---|---|
| Charleston County | 9% | 6% state + 3% local |
| Greenville County | 7% | 6% state + 1% local |
| Richland County (Columbia) | 8% | 6% state + 2% local |
| Horry County (Myrtle Beach) | 9% | 6% state + 3% local |
Use Quaderno's Sales Tax Calculator to find the exact combined rate for any South Carolina address.
How to calculate sales tax in South Carolina
South Carolina uses destination-based sourcing, so you charge the combined rate at your buyer's location.
Example: You sell a $150 SaaS subscription to a business in Charleston County (9% combined rate). The subscription is taxable as a communications service. Sales tax is $13.50, making the total $163.50.
Example: You sell a $50 downloaded e-book to a customer in Greenville County. Downloaded digital products are generally not taxable in South Carolina, so no sales tax applies.
South Carolina Sales Tax Holiday
South Carolina holds an annual back-to-school sales tax holiday, typically the first Friday through Sunday of August. During this three-day weekend, the following are exempt from sales tax:
- Clothing and footwear (no per-item price limit)
- Computers and computer equipment
- School supplies
Check the South Carolina Department of Revenue for the current year's exact holiday dates.
How to register for a South Carolina sales tax permit
If your business has nexus in South Carolina, register before collecting sales tax. Register online through MyDORWAY, the SCDOR's official tax portal. Registration is free, and you can also file returns and make payments through the same system.
For a step-by-step walkthrough of the registration process, see the South Carolina Sales Tax Registration Guide.
Filing and payment in South Carolina
How often do you file sales tax in South Carolina?
South Carolina assigns your filing frequency at registration based on your expected sales volume — monthly, quarterly, or annually. Higher-volume sellers typically file monthly.
When are South Carolina sales tax returns due?
Returns are due on the 20th of the month following the close of the reporting period. If the 20th falls on a weekend or holiday, the return is due the next business day.
How to file and pay South Carolina sales tax
File and pay online through MyDORWAY. South Carolina requires a return for every assigned period, even if you had no taxable sales — zero returns are required.
For step-by-step filing instructions, see the South Carolina Sales Tax Filing Guide.
Penalties and compliance risks in South Carolina
Late filing or payment in South Carolina triggers penalties and interest. Common compliance mistakes to avoid:
- Treating SaaS as not taxable — South Carolina taxes SaaS as a communications service.
- Taxing downloaded digital products — South Carolina generally does not tax downloaded digital goods. Overcollecting creates its own compliance risk.
- Missing county-level rates — applying only the 6% state rate without accounting for county taxes leads to undercollection.
For penalty information, see the South Carolina Department of Revenue.
How Quaderno helps with South Carolina sales tax
Quaderno automatically calculates the correct sales tax rate for every South Carolina address, applies the right taxability rules for SaaS and digital products, and keeps your records organized. Stop worrying about compliance and focus on growing your business.
Sales tax guides for neighboring states
If you sell across the Southeast, you may have sales tax obligations in these states too.
Note: At Quaderno we love providing helpful information and best practices about taxes, but we are not certified tax advisors. For further help, or if you are ever in doubt, please consult a professional tax advisor or the tax authorities.