South Carolina has a 6% state-wide sales tax, and many counties impose additional local sales taxes. If you sell taxable goods or services in South Carolina, you may be required to register, collect, and remit sales tax.
Whether you operate a local business in South Carolina, sell through your own ecommerce website, or are an out-of-state seller that has exceeded the state’s economic nexus threshold, understanding your obligations is essential to remaining compliant.
South Carolina Sales Tax at a Glance (2026)
| Topic | Key Information |
| State sales tax | 6% |
| Local sales taxes | Up to 3% |
| Economic nexus | More than $100,000 in sales |
| Retail License required | Yes |
| Retail License Fee | $50 |
| Filing frequency | Based on assigned filing schedule |
| Registration | MyDORWAY |
When Do You Have Sales Tax Nexus in South Carolina?
You generally have sales tax nexus if your business:
- Has a storefront, office, warehouse, employees, or inventory in South Carolina.
- Uses a third-party fulfillment center located in South Carolina.
- Has more than $100,000 in gross revenue from sales into South Carolina during the current or previous calendar year.
If you meet any of these conditions, you’ll generally need to obtain a Retail License and begin collecting South Carolina sales tax.
What Is Taxable in South Carolina?
South Carolina generally imposes sales tax on retail sales of tangible personal property and certain services. Taxable products commonly include:
- Clothing
- Electronics
- Furniture
- Appliances
- Sporting goods
- Household goods
Certain services and electronically delivered products may also be taxable depending on the transaction. Common exemptions include:
- Qualifying sales for resale
- Certain medical items
- Specific manufacturing purchases
- Other transactions qualifying for an exemption under South Carolina law
Businesses should determine whether their specific products or services are taxable before making sales.
How to Register for a South Carolina Retail License
Businesses making taxable retail sales generally need a South Carolina Retail License.
Registration can be completed through MyDORWAY, the South Carolina Department of Revenue’s online tax portal.
The basic process includes:
- Complete the Business Tax Application through MyDORWAY.
- Provide your EIN and business information.
- Pay the $50 non-refundable Retail License fee.
- Receive your Retail License.
- Begin collecting sales tax.
Businesses with multiple retail locations generally need a separate Retail License for each location.
Unlike permits in some states, South Carolina Retail Licenses generally do not expire, although businesses must update their license information when locations change.
South Carolina Sales Tax Rates
South Carolina has a 6% state-wide Sales and Use Tax rate. Many counties impose one or more additional local sales taxes. Depending on the location, these local taxes can currently add 0% to 3% to the statewide rate. As a result, the combined rate varies depending on where the sale takes place or is sourced.
South Carolina administers most state and local sales taxes together, meaning businesses generally report them on the same Sales and Use Tax return rather than registering separately with each local jurisdiction. Businesses should regularly check current local rates because counties can introduce, extend, or change local taxes.
Marketplace Facilitator Rules
Marketplace facilitators such as Amazon, Etsy, eBay and Walmart Marketplace generally collect and remit South Carolina sales tax on marketplace sales. If you also sell through your own website or directly to customers, you’re responsible for collecting tax on those sales if you have nexus.
Filing Requirements
Businesses registered for South Carolina sales tax must file returns and remit the tax they’ve collected to the South Carolina Department of Revenue. Your filing schedule is assigned by the SCDOR and may vary depending on your business and tax liability.
Returns and payments can be submitted through MyDORWAY. Businesses must file a return for every required reporting period while their Sales and Use Tax account remains open, including periods where no tax is due.
Businesses that fail to file returns or remit South Carolina sales tax on time may face late filing penalties, interest on unpaid tax and collection actions.
Timely Filing Discount
South Carolina provides a discount to businesses that file their Sales and Use Tax returns and pay the tax due on time.
Generally:
- Tax due below $100 may qualify for a 3% discount.
- Tax due of $100 or more may qualify for a 2% discount.
- Annual maximums apply.
This is worth monitoring because businesses that consistently file on time can reduce their overall compliance costs.
South Carolina Tax Free Weekend
South Carolina holds an annual Tax Free Weekend, during which qualifying purchases can be made without paying state or applicable local Sales and Use Tax.
Qualifying products can include items such as:
- Clothing
- Footwear
- School supplies
- Computers
- Certain computer accessories
Businesses selling qualifying products should review the SCDOR’s guidance before each year’s event to ensure the exemption is applied correctly.
South Carolina Sales Tax Compliance Checklist
- Determine whether you have physical or economic nexus.
- Monitor the $100,000 economic nexus threshold.
- Apply for a South Carolina Retail License.
- Pay the $50 Retail License fee.
- Determine whether your products or services are taxable.
- Collect the correct state and local sales tax rates.
- File all required returns, including zero returns.
- Take the timely filing discount when eligible.
- Review Tax Free Weekend requirements each year.
FAQs
What is the sales tax rate in South Carolina?
South Carolina has a 6% state-wide sales tax, with additional local taxes depending on the location.
What is South Carolina’s economic nexus threshold?
Remote sellers generally establish economic nexus when gross revenue from South Carolina sales exceeds $100,000.
How much is a South Carolina Retail License?
A South Carolina Retail License has a $50 non-refundable fee.
Do marketplaces collect South Carolina sales tax?
Qualifying marketplace facilitators generally collect and remit sales tax on marketplace sales.
Does South Carolina have a sales tax holiday?
Yes, South Carolina holds an annual Tax Free Weekend for qualifying purchases such as clothing, school supplies, and computers.
Final Thoughts
South Carolina’s sales tax system combines a 6% state-wide rate with local taxes, making it important to apply the correct rate to each transaction. Businesses should also pay attention to the state’s $100,000 economic nexus threshold, Retail License requirements, and filing obligations.
Registering when required, keeping accurate records, and filing returns on time will help keep your business compliant.
Need help with South Carolina sales tax registration, filings, or compliance? Contact our tax professionals today.
