Sales and Use Tax

• The sales and use tax rate in South Carolina is 6%.
• A local option sales tax applies in Richland County adds 2%.
• The sales tax applies to all retail sales, leases and rentals of tangible personal property, including the value of property purchased at wholesale and then used or consumed by the purchaser.
• The use tax is based on the sales price of such property.

Sales tax exemptions include:

• Electricity and fuels used in the manufacturing process
• Machinery, equipment and replacement parts used for manufacturing
• Equipment used in research & development
• Raw materials to become part of the finished product
• Air, water and noise pollution control equipment
• $300 maximum sales tax applies to sale or lease of motor vehicles, trucks, aircraft, boats and other related items
• Material handling equipment for manufacturing projects investing $35 million or more in the state
• Construction materials used in the construction of a single manufacturing and distribution facility with a capital investment of at least $100 million