How to Calculate Use Tax in South Carolina

A simple, fast, and accurate calculator for determining your SC use tax liability.

South Carolina Use Tax Calculator

Calculation Results

Purchase Price:

State Use Tax (6%):

Local Use Tax: ()

Total Combined Rate:

Cost Breakdown: Purchase Price vs. Total Use Tax

What is Use Tax in South Carolina?

Use tax is a tax on the use, storage, or consumption of tangible personal property in South Carolina for which no South Carolina sales tax has been paid. Essentially, if you buy an item from an out-of-state seller (like an online retailer) who doesn’t collect SC sales tax, you are legally required to pay use tax directly to the state. This ensures fairness for local businesses who must collect sales tax and prevents the state from losing tax revenue. Knowing how to calculate use tax in South Carolina is crucial for both individuals and businesses to remain compliant.

Common scenarios where use tax applies include online purchases, catalog orders, or buying items in a state with no sales tax and bringing them back to South Carolina. The use tax rate is the same as the sales tax rate: a 6% statewide rate plus any applicable local taxes.

The South Carolina Use Tax Formula

The formula to calculate use tax in South Carolina is straightforward. It combines the state tax rate with the local tax rate of the county where the item is used.

Formula: Total Use Tax = Purchase Price × (State Tax Rate + Local Tax Rate)

Our calculator simplifies this process, but understanding the components helps in manually verifying your liability. This is a fundamental part of learning how to calculate use tax in south carolina.

Variables Explained

Variable	Meaning	Unit	Typical Range
Purchase Price	The total cost of the taxable item(s) before tax.	USD ($)	$1 – $100,000+
State Tax Rate	The base tax rate set by the state of South Carolina.	Percentage (%)	6% (fixed)
Local Tax Rate	The additional tax rate imposed by a specific county.	Percentage (%)	0% – 3%

Practical Examples

Example 1: Online Furniture Purchase

You live in Richland County and buy a sofa online for $2,000 from a company that does not collect South Carolina sales tax.

• Inputs:
  • Purchase Price: $2,000
  • County: Richland (2% local tax)
• Calculation:
  • State Tax (6%): $2,000 * 0.06 = $120.00
  • Local Tax (2%): $2,000 * 0.02 = $40.00
• Results:
  • Total Use Tax: $160.00
  • Total Cost: $2,160.00

Example 2: Equipment from a Border State

Your business in Spartanburg County purchases $15,000 worth of equipment from a supplier in a neighboring state who doesn’t charge sales tax.

• Inputs:
  • Purchase Price: $15,000
  • County: Spartanburg (1% local tax)
• Calculation:
  • State Tax (6%): $15,000 * 0.06 = $900.00
  • Local Tax (1%): $15,000 * 0.01 = $150.00
• Results:
  • Total Use Tax: $1,050.00
  • Total Cost: $16,050.00

These examples illustrate how to calculate use tax in South Carolina for different scenarios.

How to Use This Use Tax Calculator

1. Enter Purchase Price: Input the total cost of the item or items in the first field. Do not include shipping unless it is part of the taxable base.
2. Select Your County: Choose the South Carolina county where the item will be primarily used or stored from the dropdown menu. This is critical for applying the correct local tax rate.
3. Review the Results: The calculator will instantly show you the total use tax due, along with a breakdown of state vs. local tax amounts.
4. Interpret the Chart: The bar chart provides a visual representation of how much the use tax adds to the original purchase price.

Key Factors That Affect South Carolina Use Tax

• Purchase Location: The tax is only due if you buy from a seller who doesn’t collect SC sales tax. If they collect the correct combined rate, you owe nothing more.
• Item Type: While most tangible goods are taxable, some exemptions exist, such as for prescription medicine. This calculator assumes the item is taxable.
• County of Use: The total tax rate changes based on your county. Rates can range from 6% (state only) to 9% in some areas.
• Maximum Tax: For certain items like cars, boats, and airplanes, the total sales and use tax is capped at $500. This calculator is for general merchandise not subject to this cap.
• Shipping and Handling: If shipping and handling are a required part of the sale, they are typically included in the taxable purchase price.
• Reporting Deadlines: Individuals typically report and pay use tax on their annual state income tax return (Form SC-1040). Businesses file more frequently. Knowing how to calculate use tax in South Carolina is the first step; timely payment is the second.

Frequently Asked Questions (FAQ)

1. Isn’t this double taxation?

No. Use tax is only owed when South Carolina sales tax was not collected. If you paid sales tax to another state, you may be able to get a credit for that amount, ensuring you don’t pay more than the SC rate.

2. What if I buy something in a state with a lower tax rate?

You owe the difference to South Carolina. For example, if you paid 4% sales tax in another state, you would owe the remaining 2% (state) plus any applicable SC local tax.

3. How does the state know if I bought something?

States have information-sharing agreements with major online retailers. The SCDOR also reviews customs records and business filings. It is always best to voluntarily comply to avoid penalties and interest.

4. Do I have to pay use tax on a gift?

No. Use tax is based on purchases. If you receive a bona fide gift, no tax is due.

5. What is the difference between sales tax and use tax?

Sales tax is collected by the seller at the point of sale. Use tax is paid by the consumer directly to the state when sales tax has not been collected. They are complementary taxes designed to be mutually exclusive.

6. Does this apply to digital downloads?

Yes, South Carolina generally considers digital goods like software, music, and streaming services as taxable tangible personal property.

7. How do I pay the use tax I owe?

Individuals can report and pay use tax on their annual South Carolina income tax return. Businesses report it on their regular sales and use tax returns (Form ST-3).

8. What happens if I don’t pay use tax?

The South Carolina Department of Revenue can assess the tax you owe, plus significant penalties and interest. Failure to comply can be costly.