South Carolina covers 83,000 km² in the southeastern United States. The "Palmetto State" borders North Carolina to the north, Georgia to the west and south, and the Atlantic Ocean to the east. Just over five million people live here, and the capital is Columbia.
The "Palmetto State" is known for its warm hospitality and its business-friendly climate. Area Development Magazine consistently ranks South Carolina among the top five states for doing business. Companies of every size find a strong starting point here.
The South Carolina Department of Commerce has a long, proven track record of helping international companies set up, relocate and expand their operations in the US and across North America. More than 1,200 international companies have locations in South Carolina, and majority foreign-owned businesses employ more than 158,000 people in the "Palmetto State".
Masters of manufacturing
Advanced materials have put the state's economy into high gear. From plastics and optics to photonics and composites, South Carolina now supplies the world's manufacturers with the inputs needed for some of the most complex products in industry. Nearly 800 advanced materials companies are based in South Carolina.
From premium cars and home appliances to boats and aircraft, every finished product that rolls off the line here strengthens South Carolina's reputation as an ideal location for advanced manufacturing.
South Carolina is home to one of the most dynamic aerospace hubs in the nation. With an annual economic impact of more than $28 billion, the sector has become a key pillar of the state's economy. The state's aerospace industry has taken off since 2009, when Boeing chose North Charleston for its final assembly and delivery facility.
South Carolina's manufacturing sector is growing at a record pace and shows no sign of slowing down. Over the past ten years, the "Palmetto State" has averaged employment growth of more than 18 percent.
A workforce that drives success
Beyond the business-friendly environment, companies come to South Carolina for its favorable labor climate. Area Development magazine ranked the state third for low labor costs and fourth for workforce development programs. South Carolina has the lowest share of workers covered by collective bargaining agreements in the nation. Its union membership rate, below three percent, is also the lowest in the US, and in the private sector it is under two percent. With low corporate tax rates and competitive wages, South Carolina's job market has consistently outpaced national growth.
The driving force behind the success of the state's key industries is its loyal, highly skilled workforce. From premium cars to wide-body airliners, South Carolinians have proven they are exceptionally good at building advanced, highly complex products.
To keep workforce quality high, a team of Regional Workforce Advisors (RWAs) connects businesses with educational institutions so industry gets the talent it needs.
Income tax in South Carolina
South Carolina levies an income tax of 0 to 6%, depending on income (top rate for tax year 2025; it has come down step by step from 7% since 2021). On top of that, you pay federal income tax.
Corporate income tax in South Carolina
South Carolina levies a corporate income tax of 5%. On top of that, you pay federal corporate income tax.
Sales tax in South Carolina
The US has no European-style VAT. Instead, states, counties and municipalities levy a local sales tax on sales of goods (but not services).
South Carolina sales tax rate
South Carolina's state sales tax is 6%. Cities and counties add an average of 1.46%, so the combined rate averages 7.46%.
South Carolina nexus laws & sales tax
Learn more about economic nexus laws and sales tax.
Effective date
November 1, 2018
Included transactions:
Gross revenue from sales of tangible personal property, electronically delivered products or services delivered into the state
Treatment of exempt sales:
Exempt sales and exempt services count toward the threshold
Trigger:
Sales only
Sales/transaction threshold:
$100,000
Evaluation period:
The threshold applies to the previous or current calendar year
Additional information:
- Registration requirements: Remote sellers that exceed the economic nexus threshold on or after October 1, 2018 must remit sales and use tax on all taxable sales into South Carolina starting on the first day of the second calendar month after economic nexus is established. For more information, see SC Revenue Ruling #18-14.
- Sales and use tax for remote sellers
- Remote seller FAQs
South Carolina marketplace sellers & sales tax
Learn more about registration requirements for marketplace sellers
Effective date for marketplace facilitators:
April 26, 2019
Economic nexus threshold:
More than $100,000 in South Carolina sales in the current or previous calendar year. Remote sellers should include sales made through a marketplace when calculating the threshold. Marketplace facilitators include all taxable sales made through the marketplace when calculating the threshold.
Registration requirements:
- Remote multichannel sellers: Once you exceed the economic nexus threshold, you must register with the South Carolina Department of Revenue (DOR) and collect South Carolina sales tax on sales not taxed by a marketplace facilitator.
- You can exclude sales taxed by a marketplace facilitator from your tax returns.
- Remote marketplace sellers: You do not need to register, even if you exceed the economic nexus threshold. Contact the South Carolina DOR for more information.
- In-state multichannel sellers: You must register with the South Carolina DOR and collect tax on sales not taxed by a marketplace facilitator.
- You can exclude sales taxed by a marketplace facilitator from your tax returns.
- In-state marketplace sellers: You must register. Contact the South Carolina DOR for more information.
- Learn more here.
For an overview of every state, see our guide to the US states. Whether South Carolina or another state is the right home for your US company is covered in Which US state is best for your company?, and you will find the basics in our guide to forming a company in the USA.
How we help with South Carolina:
Have plans in South Carolina? We form your US company in one of the six states we serve. You will find the options and fees under US company formation, and we answer your questions in a consultation.