Key takeaways
- South Carolina sales tax rates: The state rate is 6%, and counties may add a local option tax of up to 1% plus other local taxes, bringing combined rates to between 6% and 9%.
- Economic nexus: Remote sellers must collect once gross sales into South Carolina exceed $100,000 in the previous or current calendar year. There is no transaction-count threshold.
- Filing & penalties: Returns are due on the 20th of the month after the period. Failure to file costs 5% per month and failure to pay 0.5% per month, each up to 25%.
South Carolina sales tax key facts (2026)
| Item | South Carolina |
|---|---|
| Statewide rate | 6% |
| Combined rate range | 6%–9% |
| Economic nexus threshold | $100,000 (no transaction count) |
| Sourcing | Destination-based |
Collect and file South Carolina sales tax with Taxually: LumaTax monitors your nexus, registers you and files your returns.
Is SaaS taxable?
Yes.
| Item | South Carolina |
|---|---|
| Groceries | Exempt from state tax (local may apply) |
| Retail license fee | $50 |
| Return due date | 20th of the month after the period |
| Governing agency | South Carolina Department of Revenue |
What is the sales tax rate in South Carolina?
South Carolina’s statewide sales tax rate is 6%. Counties may add a local option tax of up to 1%, plus further local taxes for tourism, transportation, and education — bringing combined rates to between 6% and 9%. A separate 2% accommodations tax applies to transient lodging, and vehicle and trailer sales are capped at a $500 maximum tax.
Do you have sales tax nexus in South Carolina?
Nexus is the connection that obligates your business to collect and remit South Carolina sales tax. You can establish it two ways — physically or economically. Either one is enough.
Physical nexus
You have physical nexus if you have a tangible presence in South Carolina, such as:
- A business location in the state (including offices or warehouses)
- Employees or representatives in South Carolina
- Owning property or inventory in the state
- Delivering merchandise using company-owned vehicles
- Using a third party in South Carolina to drop-ship goods to customers
Economic nexus
Out-of-state sellers establish economic nexus once gross sales into South Carolina exceed $100,000 in the previous or current calendar year (effective November 1, 2018). There is no transaction-count threshold.
What is taxable in South Carolina?
Most tangible personal property is taxable, with exemptions including certain groceries, prescription medications, medical devices, and R&D machinery. Some services are taxable as well.
Is SaaS taxable in South Carolina?
Yes. South Carolina taxes SaaS (treated as a communications service), along with other charges related to accessing software and databases.
How is food taxed in South Carolina?
Unprepared food items (those that can be purchased with USDA food coupons) are exempt from the state 6% tax, though local taxes may still apply. Prepared food for immediate consumption is taxed at the full rate plus local taxes.
How to register for a South Carolina sales tax permit
Obtain a retail license before collecting. Taxually can register for you, or you can apply online through MyDORWAY or by mail using Form SCDOR-111. The retail license fee is $50.
Have ready: business details (name, address, type of ownership), owner or corporate officer information, and the physical location of the business.
How to collect sales tax in South Carolina
South Carolina is destination-based — collect at the combined rate for the buyer’s location, whether you’re in-state or remote.
Filing and paying South Carolina sales tax
Filing frequency (monthly, quarterly, or annual) depends on your average liability. Returns are due the 20th of the month following the period. Businesses that paid $15,000 or more in any filing period in the past year must file electronically.
File and pay through MyDORWAY or by mail (Forms ST-3 and ST-389). A timely-filing discount applies — 3% for tax under $100 and 2% above — capped at $3,000 per year ($10,000 for qualifying out-of-state sellers). Taxually’s software automates the full process.
Penalties for late or non-compliant filing
Failing to file or pay on time triggers these penalties:
- Failure to file: 5% of the tax owed per month (or part of a month), up to 25%.
- Failure to pay: 0.5% of the tax owed per month (or part of a month), up to 25%.
- Interest accrues on unpaid tax at the current rate.
Frequently asked questions
What is the sales tax rate in South Carolina in 2026?
The state rate is 6%, with local taxes bringing combined rates to between 6% and 9%.
What is the economic nexus threshold for South Carolina?
$100,000 in gross sales into South Carolina in the previous or current calendar year. There is no transaction-count threshold.
Is SaaS taxable in South Carolina?
Yes. South Carolina taxes SaaS as a communications service.
Are groceries taxed in South Carolina?
Unprepared groceries are exempt from the 6% state tax, though local taxes may apply. Prepared food is fully taxable.
When are South Carolina sales tax returns due?
The 20th of the month following your reporting period.
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