Sales Tax Nexus in South Carolina: What Online Sellers Need to Know

The Short Answer

South Carolina triggers sales tax obligations at $100,000 in sales OR 200 transactions. State rate carries county local option taxes on top. SaaS is generally not taxable under South Carolina's tangible-property-focused framework.

Economic Nexus Threshold

• Dollar threshold: $100,000 in gross revenue from retail sales into South Carolina
• Transaction threshold: 200 or more separate transactions
• Either/Or: Meeting either triggers the obligation
• Effective date: November 1, 2018

Does South Carolina Count Marketplace Sales Toward Your Threshold?

Marketplace facilitators collect and remit on facilitated transactions. Threshold aggregation rules should be confirmed — Taxero handles this during onboarding.

What Taxable Products Look Like in South Carolina

• Local additions: Counties impose Local Option Sales Taxes (LOST) on top of the state rate — check the SC DOR's rate lookup for your buyer's exact combined rate
• Groceries: Exempt from the state rate
• Clothing: Taxable
• SaaS: Not taxable. South Carolina has not enacted broad digital goods legislation — SaaS and cloud-only software are generally not subject to South Carolina sales tax.

How to Register in South Carolina

South Carolina is not an SST member. Register via MyDORWAY:

• Portal: mytaxes.dor.sc.gov
• Cost: Free

Filing Requirements

Monthly, quarterly, or annual based on liability. Due 20th of the following month. File Form ST-3 via MyDORWAY.

What Happens If You Don't Register

Late filing and late payment penalties per SC Code §12-54-43.

How Taxero Handles South Carolina

Taxero handles MyDORWAY registration, applies the grocery exemption and SaaS non-taxability correctly, and manages quarterly filings.

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