SC
South Carolina Small Business Tax Guide
A plain summary of what the SCDOR, the state code and the IRS publish on sales, income and corporate tax, for reading only and not tax advice.
Disclaimer: This page is educational content only. Tax laws change, and your situation may differ. It is not legal, tax, or financial advice. Consult a qualified professional licensed in South Carolina before making filing or planning decisions.
Tax landscape for small businesses
This guide quotes the South Carolina Department of Revenue (SCDOR), the South Carolina Code of Laws and the IRS, and dates each figure where it appears.
On sales, the SCDOR's sales tax page (South Carolina, checked October 31, 2026) says "The statewide Sales & Use Tax rate is 6%." and "Counties may impose an additional 1% local sales tax if voters in that county approve the tax." Before selling, its retail license page (South Carolina, checked October 31, 2026) says "Every person who engages in business in South Carolina as a retailer must obtain a Retail License before making any retail sales that are taxed under Sales & Use Tax".
For individuals, the SCDOR's individual income tax page (South Carolina, checked October 31, 2026) says "The tax year 2026 tax rate for income less than $30,000 is 1.99%." and "The tax year 2026 tax rate for income from $30,000 and above is 5.21%, minus $966." For the year before, the same SCDOR page says "The 2025 top marginal Individual Income Tax rate is 6% on taxable income."
For corporations, the South Carolina Code, Section 12-6-530 (South Carolina, checked October 31, 2026), says "An income tax is imposed annually at the rate of five percent on the South Carolina taxable income of every corporation". The SCDOR's corporate tax page (South Carolina, checked October 31, 2026) adds "You must pay the initial $25 Corporate License Fee when submitting your CL-1".
Worked example using sample figures, at the SCDOR's statewide rate (South Carolina, checked October 31, 2026): $800.00 of taxable goods on one invoice at 6% carries $800.00 × 6% = $48.00 of sales tax, for $848.00 in total. The SCDOR says "Counties may impose an additional 1% local sales tax", so look up the rate for the place of sale.
Tax overview
Each row lists a tax area and its notes. Confirm current figures with your state's tax agency or the IRS.
| Tax type | Rate or basis | Notes |
|---|---|---|
| State sales and use tax | "6%" | The SCDOR's sales tax page (South Carolina, checked October 31, 2026): "The statewide Sales & Use Tax rate is 6%." |
| County local option | "an additional 1%" | The SCDOR's sales tax page (South Carolina, checked October 31, 2026): "Counties may impose an additional 1% local sales tax if voters in that county approve the tax." |
| Individual income tax, tax year 2026 | "1.99%" and "5.21%, minus $966" | The SCDOR's individual income tax page (South Carolina, checked October 31, 2026): "The tax year 2026 tax rate for income less than $30,000 is 1.99%." |
| Corporate income tax | "five percent" | The South Carolina Code, Section 12-6-530 (South Carolina, checked October 31, 2026): "An income tax is imposed annually at the rate of five percent on the South Carolina taxable income of every corporation" |
| Federal self-employment tax | "15.3%" | The IRS self-employment tax page (In the US (federal), last reviewed or updated October 30, 2026): "The self-employment tax rate is 15.3%." |
Filing requirements
This list isn't a complete checklist for your business.
Retail License
The SCDOR's retail license page (South Carolina, checked October 31, 2026) lists a "$50 non-refundable fee" for the Retail License and says "If you have more than one business location, you must have a separate Retail License for each location."
Remote sellers
The SCDOR's retail license page (South Carolina, checked October 31, 2026) says "Out-of-state taxpayers who make sales in South Carolina are considered Remote Sellers." Its remote sellers page (South Carolina, checked November 1, 2026) says "Remote sellers who have economic nexus with South Carolina must have a Retail License to collect, file, and pay Sales Tax to the SCDOR." It counts a seller "whose gross revenue exceeds $100,000, in the previous or current calendar year" whether it sells goods, electronically delivered products or services into the state. On timing, the same page says remote sellers who meet the standard "on or after October 1, 2018, are required to obtain a retail license from the Department and remit South Carolina Sales and Use Taxes beginning the first day of the second calendar month after economic nexus is established."
Resale certificates and exempt sales
Section 12-36-950 of the South Carolina Code (South Carolina, checked October 31, 2026) says "It is presumed that all gross proceeds are subject to the tax until the contrary is established." It adds that "if the seller receives a resale certificate signed by the purchaser stating that the property is purchased for resale, the liability for the sales tax shifts from the seller to the purchaser." Section 12-36-2120 of the Code lists the sales that are "Exempted from the taxes imposed by this chapter"; keep the certificate or other record for any sale you don't tax.
Electronic sales tax filing
The SCDOR's sales tax page (South Carolina, checked October 31, 2026) says "Sales & Use taxpayers whose South Carolina tax liability is $15,000 or more per filing period must file and pay electronically".
Corporate income tax return
The SCDOR's corporate tax page (South Carolina, checked October 31, 2026) says corporate taxable entities "file annually on or before the 15th day of the fourth month after the close of the taxable year", apart from initial and final returns.
Withholding returns
The SCDOR's withholding page (South Carolina, checked October 31, 2026) says "Returns are due by the end of the month following the end of the filing quarter."
Individual returns for tax year 2026
The SCDOR's news item on Information Letter #26-20 (South Carolina, checked October 31, 2026) says "Tax year 2026 returns aren't due until April 15, 2027."
Federal estimated tax
The IRS estimated taxes page (In the US (federal), last reviewed or updated September 25, 2026) says "Individuals, including sole proprietors, partners, and S corporation shareholders, generally have to make estimated tax payments if they expect to owe tax of $1,000 or more when their return is filed."
Deductions and write-offs
Confirm with your state how it treats each item.
- New for tax year 2026 (South Carolina, SCDOR individual income tax page, checked October 31, 2026): "South Carolina has decoupled from the federal deductions listed in Internal Revenue Code Sections 63(b) through (g)." Ask the SCDOR or a tax professional how that affects your return.
- Adjusted gross income (IRS self-employment tax page; In the US (federal), last reviewed or updated October 30, 2026): "You can deduct the employer-equivalent portion of your self-employment tax in figuring your adjusted gross income."
- Records (In the US (federal), IRS recordkeeping page, last reviewed or updated May 1, 2026): "You may choose any recordkeeping system suited to your business that clearly shows your income and expenses."
Practical tips
- Apply for a Retail License before the first sale. The SCDOR's retail license page (South Carolina, checked October 31, 2026) ties it to "retail sales that are taxed under Sales & Use Tax".
- Look up the rate where you sell. The SCDOR's sales tax page (South Carolina, checked October 31, 2026) links its "South Carolina Sales Tax Rate by Municipality" list.
- Show sales tax on each invoice. Billed's mobile app page (checked October 31, 2026) says you can "Add line items, your logo, and tax, then send by email or share a link before you leave the site."
- Keep spending sorted for your accountant. Billed's expense tracking page (checked October 31, 2026) says "Billed's expense report can group your expenses by category."
- Rates and dates change; the SCDOR, the South Carolina Code and the IRS publish the current ones, and a tax professional can apply them to your business.
Frequently asked questions
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At a glance
| Topic | What the SCDOR, the Code or the IRS says |
|---|---|
| Statewide sales and use tax | SCDOR: "The statewide Sales & Use Tax rate is 6%." (South Carolina, checked October 31, 2026) |
| County option | SCDOR: "Counties may impose an additional 1% local sales tax if voters in that county approve the tax." (South Carolina, checked October 31, 2026) |
| Retail License | SCDOR: "$50 non-refundable fee" (South Carolina, checked October 31, 2026) |
| Remote sellers | SCDOR: "gross revenue exceeds $100,000, in the previous or current calendar year" (South Carolina, checked November 1, 2026) |
| Individual rates, tax year 2026 | SCDOR: "The tax year 2026 tax rate for income from $30,000 and above is 5.21%, minus $966." (South Carolina, checked October 31, 2026) |
| Corporate income tax | South Carolina Code, Section 12-6-530: "at the rate of five percent" (South Carolina, checked October 31, 2026) |
| Federal SE tax | IRS: "The self-employment tax rate is 15.3%." (In the US (federal), last reviewed or updated October 30, 2026) |
When this isn't for you
This page suits owners of small South Carolina businesses that sell goods or services. Accommodations, admissions, property and payroll details aren't covered here; ask the SCDOR or a tax professional about those.