Sales Tax in South Carolina: A Complete Guide for Ecommerce Sellers

South Carolina is an SST member state with a 6% state rate and county additions. South Carolina uses only a dollar threshold for economic nexus (no transaction count) making the compliance trigger simpler than most states. A seller-favorable rule: separately stated shipping is not taxable. South Carolina’s local structure is county-based, with most counties levying LOST additions that bring combined rates to 7%–9% depending on location.

Quick reference

Economic nexus

South Carolina uses a sales-only threshold: $100,000 in gross sales into South Carolina in the current or prior calendar year. There is no transaction count threshold.

South Carolina enacted its economic nexus rules effective November 1, 2018.

Physical nexus

Physical presence in South Carolina creates nexus without any threshold:

• Warehouse, office, or storage facility in South Carolina
• Amazon FBA inventory in South Carolina fulfillment centers
• Employees, agents, or independent contractors in South Carolina
• Sales representatives in South Carolina

Registration

South Carolina is an SST member state. Register through a Certified Service Provider for simultaneous registration in South Carolina and all other SST states at no charge.

Sellers can also register directly with the South Carolina Department of Revenue through MyDORWAY (mydorway.dor.sc.gov). Registration is free.

Tax rates

State rate: 6%

County additions: South Carolina counties levy Local Option Sales Tax (LOST) additions. Most counties have added 1%–2% in local taxes:

• Charleston County: 1% LOST + additional special taxes = approximately 9% combined in some areas
• Richland County (Columbia): 1% LOST = 7% combined
• Myrtle Beach (Horry County): multiple local additions = up to 9% combined
• Many rural counties: 1% LOST = 7% combined

Some counties also have Hospitality Taxes (on prepared food) and other special purpose taxes that may apply to specific product categories.

What’s taxable

Generally taxable: Electronics, clothing, furniture, sporting goods, toys, most tangible personal property.

Generally exempt:

• Prescription medications
• Food for home consumption (groceries — South Carolina exempts most food at the state level)
• Agricultural equipment and supplies
• Prescription eyeglasses

Notable South Carolina rules:

• Clothing: Taxable in South Carolina, no clothing exemption
• Digital products: South Carolina taxes specified digital products, including downloaded software and digital audio/audiovisual works
• SaaS: South Carolina has taken the position that remotely accessed software (SaaS) may be taxable, sellers should confirm current guidance
• Food: South Carolina exempts food for home consumption from the state rate. Local county taxes may still apply to food purchases in some jurisdictions

Shipping taxability

South Carolina does not tax separately stated delivery charges. When shipping appears as a separate line item on the invoice, it is not subject to South Carolina sales tax.

When shipping is bundled into the sale price, it may be taxable if the goods are taxable.

Practical implication: Separately state delivery charges on all South Carolina invoices to exclude them from the taxable amount.

Marketplace facilitator rules

South Carolina enacted marketplace facilitator legislation effective April 26, 2019. Qualifying marketplace facilitators collect and remit South Carolina sales tax on marketplace-facilitated sales.

Remote sellers with no South Carolina physical nexus whose only South Carolina sales are through marketplace facilitators may not need to separately register. Sellers with South Carolina physical nexus must register regardless.

State-specific notes

Dollar-only nexus threshold: South Carolina’s $100K sales-only threshold means sellers hitting the dollar mark trigger nexus regardless of how many individual transactions they have. A seller with 50 large orders totaling over $100K owes registration just as much as one with 500 small orders.

Shipping exemption: South Carolina’s separately stated shipping exemption is a meaningful compliance consideration for sellers who currently include shipping in product prices. Displaying shipping as a line item in checkout eliminates sales tax on that charge in South Carolina.

SST membership: South Carolina’s SST membership makes it efficient to add to a multi-state compliance program, one CSP registration covers South Carolina and all other SST states.