Operating a successful short-term rental in South Carolina requires navigating complex tax and regulatory requirements that vary by location. State sales taxes, accommodations taxes, local fees, and licensing requirements differ across jurisdictions, creating compliance challenges for hosts—similar complexities exist in North Carolina's STR tax requirements and other southeastern states. Non-compliance consequences include hefty penalties and legal complications that could jeopardize your operation.

This South Carolina Short-term Rental Tax & Fee Guide provides the knowledge needed to operate legally and profitably in the Palmetto State. Whether you're a seasoned investor or just starting your rental journey, this guide covers all tax compliance aspects. At Surge, our expertise in professional property management has helped countless hosts navigate these complexities while focusing on providing exceptional guest experiences.

Definitions of South Carolina Short-Term Rental Tax & Fee Guide

South Carolina defines a short-term rental as any residential property or portion rented for under 30 consecutive days. This includes vacation rentals, Airbnb, VRBO, and any accommodation for brief stays, from beachfront condos in Myrtle Beach to historic homes in Charleston's downtown. Like other southeastern states such as Georgia's short-term rental market, South Carolina attracts significant tourism revenue through these accommodations.

The distinction between short-term and long-term rentals determines tax obligations. Long-term rentals (30+ days) face standard residential regulations, while short-term rentals encounter additional tax requirements including accommodations taxes and often need special business licenses. Understanding this classification ensures compliance with South Carolina's rental property regulations, though neighboring states like Florida follow similar rental tax frameworks for tourism-focused properties.

Overview of the South Carolina Short-Term Rental Tax & Fee Guide

Short-term rental operators in South Carolina face multiple tax obligations and fees. State sales tax applies to rental income at 6%. The Accommodations Tax (A-Tax) is a specialized levy on lodging facilities with rates from 1% to 3% or higher in tourist destinations.

Local taxes and fees add complexity through municipal charges, tourism development fees, and special assessment district costs. Business license fees require permits and registrations that vary by jurisdiction. The complexity increases because rates and requirements differ between counties and cities.

South Carolina Short-Term Rental Tax & Fee Guide State Sales Tax

South Carolina imposes a 6% state sales tax on short-term rental accommodations. This tax applies to the total rental amount charged to guests, including base nightly rates, cleaning fees, and accommodation-related charges. The tax excludes separately stated local taxes or fees.

Hosts must collect sales tax from guests at booking or check-in and remit payments to the South Carolina Department of Revenue (SCDOR). Before collecting sales tax, registration for a retail license through the SCDOR is mandatory. The registration process operates through the MyDORWAY online portal.

Most operators are required to file sales tax returns monthly, though smaller hosts qualify for quarterly submissions. Tax remittance deadlines are on the 20th day following the collection month. For detailed registration and filing information, visit the South Carolina Department of Revenue website.

Calculation Example:

• Nightly Rate: $200
• Cleaning Fee: $50
• Total Taxable Amount: $250
• State Sales Tax (6%): $15
• Total Guest Payment: $265

South Carolina Short-Term Rental Tax & Fee Guide Accommodations Tax

The Accommodations Tax (A-Tax) is a specialized levy on lodging facilities in South Carolina. Each county and municipality sets its own A-Tax rate within state limits, creating significant location variation. This tax funds tourism promotion and infrastructure improvements.

Property owners collect and remit A-Tax, though property management companies or booking platforms may handle this. Verifying A-Tax collection responsibility prevents penalties and back tax situations. Assuming platform collection when they don't creates compliance risks.

A-Tax rates range from 1% to 3% of gross rental receipts but exceed these amounts in popular tourist destinations. The calculation uses the same base as sales tax including total accommodation charges, cleaning fees, and related services. Unlike sales tax, A-Tax rates vary dramatically within the same county based on municipal boundaries.

To determine A-Tax obligations, contact the local government where properties are located. Many counties and cities have tourism or revenue departments providing current rate information and filing requirements. Popular destinations like Charleston, Myrtle Beach, and Hilton Head have specific procedures and higher rates due to tourism.

South Carolina Short-Term Rental Tax & Fee Guide Local Requirements

Beyond state obligations, South Carolina municipalities impose additional taxes and fees on short-term rentals, including hospitality fees, tourism development fees, municipal accommodation taxes, and special assessment district costs. The variety and complexity require researching requirements specific to each property location.

Coastal communities often impose additional beach restoration or hurricane recovery fees, while historic districts include preservation taxes. Mountain communities implement seasonal fees for infrastructure maintenance during peak tourism periods. These fees range from flat annual amounts to percentage-based charges like accommodation taxes.

In areas with heavy short-term rental activity, cities maintain websites with specific information for operators, including licensing and fee schedules. This includes Charleston, Beaufort County, and other tourism-focused areas that have created specialized departments assisting hosts with compliance.

Staying compliant requires thorough research with local city and county governments. Most jurisdictions provide online resources detailing business licensing, tax obligations, and filing procedures for short-term rentals.

South Carolina Short-Term Rental Tax & Fee Guide Licensing Requirements

Most South Carolina cities and counties require short-term rental operators to obtain business licenses before starting operations. Requirements vary by jurisdiction, with some requiring simple annual renewals and others mandating detailed inspections, zoning approvals, and ongoing compliance monitoring.

Licensing requirements include safety inspections, occupancy limits, parking requirements, and neighbor notification. Some jurisdictions require hosts to maintain specific insurance coverage and provide emergency contact information to local authorities. Coastal areas have additional hurricane evacuation and flood zone compliance requirements.

Before listing properties, research local regulations on city and county websites. Apply for required business licenses and register properties with local authorities when needed. Keep current contact information and insurance documentation as required by local ordinances.

State-level business registration requirements are through the South Carolina Secretary of State website. However, state registration doesn't replace local licensing requirements, and most operators need both state and local approvals.

South Carolina Short-Term Rental Tax & Fee Guide Platform Policies

Major booking platforms like Airbnb and Vrbo collect and remit certain taxes for South Carolina hosts, but coverage remains inconsistent and incomplete. Platforms may collect state sales tax in some areas, but they typically don't handle local accommodations taxes, municipal fees, or specialized assessments.

Airbnb collects and remits state sales tax for South Carolina bookings, but hosts are responsible for most local taxes and fees. Vrbo's tax collection varies by location and provides limited coverage. Platform tax policies change without notice, and compliance responsibility remains with property owners.

Before relying on platform tax collection, verify which taxes are handled and maintain records of all collections and remittances. Remit any taxes not collected by platforms directly to authorities. For current platform tax policy, check Airbnb and Vrbo help sections regularly.

South Carolina Short-Term Rental Tax & Fee Guide Record Keeping

Maintaining accurate records ensures tax compliance and protects during audits or disputes. South Carolina requires short-term rental operators to keep detailed records of all income, expenses, and tax collections for at least three years, though longer retention is advisable.

Essential documentation includes booking confirmations, payment receipts, tax records, and expense documentation for cleaning, maintenance, and supplies. Retain business license documentation and correspondence with tax authorities. Use accounting software for short-term rentals to streamline record-keeping.

Tax reporting and payment frequency vary by tax type and jurisdiction. State sales tax requires monthly reporting, while local taxes may be due monthly, quarterly, or annually. Missing deadlines results in penalties even with no tax owed, making compliance calendars essential.

South Carolina Short-Term Rental Tax & Fee Guide Penalties

South Carolina imposes substantial penalties for short-term rental tax violations. State-level penalties for unpaid sales tax include interest charges set by the Department of Revenue, failure-to-file penalties, and potential criminal charges for willful tax evasion.

In cases of non-compliance, operators face:

• Late filing fees from $50 to several hundred dollars
• Interest on unpaid taxes is typically 0.5-1% per month.
• Penalty assessments of 5-25% of unpaid tax amounts
• Revocation of business license for chronic non-compliance
• Legal action including liens on rental properties

Local penalties vary widely but can be severe. Some jurisdictions impose daily fines for operating without proper licenses, while others pursue immediate cease-and-desist orders. The cost of non-compliance typically exceeds the expense of proper registration and tax payment.

Exemptions for South Carolina Short-Term Rental Tax & Fee Guide

South Carolina provides limited exemptions for short-term rental taxes. Most standard exemptions for hotels and motels, like stays over 90 consecutive days by the same guest, apply to short-term rentals. However, these exemptions require narrow interpretation and specific documentation.

Some jurisdictions exempt properties rented fewer than 14 days per year, though this varies. Additionally, some areas exempt rentals to family members or those not advertised to the public. These exemptions require specific documentation and advance registration.

South Carolina Short-Term Rental Tax & Fee Guide Resources

Navigating South Carolina's short-term rental tax requirements requires current, accurate information from authoritative sources. The South Carolina Department of Revenue website provides primary state sales tax information. County and municipal websites contain local tax and licensing requirements.

Qualified tax professionals like CPAs or tax attorneys familiar with short-term rental regulations provide essential support. Legal counsel assists with compliance issues or dispute resolution. Professional property management companies specialize in short-term rental compliance and optimization.

Staying informed about regulation changes is crucial as tax laws and local ordinances frequently evolve. Consider subscribing to updates from relevant government agencies and joining local short-term rental host organizations for peer support and information sharing.

How Surge Supports South Carolina Short-Term Rental Tax & Fee Compliance

Managing short-term rental tax compliance while optimizing property performance creates challenges, especially with evolving regulations. Surge's expertise addresses these complexities through comprehensive professional property management services for short-term rentals.

Our team manages all tax compliance from registration and licensing to ongoing tax collection and remittance. We stay current with changing regulations across all markets, ensuring properties remain compliant while owners focus on growing investment portfolios. Services include listing optimization, dynamic pricing strategies, guest communication, and operational management that maximizes rental income.

Our interior design services for short-term rentals enhance property appeal and booking rates beyond compliance and operations. We understand guest expectations in today's market and transform spaces to command premium rates while ensuring faster bookings and higher occupancy rates.

FAQs About the South Carolina Short-Term Rental Tax & Fee Guide

How do zoning changes affect tax obligations for South Carolina short-term rentals?

Zoning and regulatory changes significantly impact operations and tax obligations. New regulations require additional licenses, impose new fees, or change tax calculations. Municipal reclassification of short-term rentals as commercial properties could result in different tax rates or additional business requirements. Stay informed about proposed zoning changes and consider joining local host organizations for early regulatory warnings.

What tax deductions are available for South Carolina short-term rental hosts?

Short-term rental operators deduct legitimate business expenses like cleaning, maintenance, utilities, property management fees, advertising, and depreciation on furniture and equipment. However, mixed-use property rules where owners also use spaces personally create complexity. South Carolina generally follows federal tax guidelines for rental property deductions, but situations vary requiring qualified tax professional consultation.

Do South Carolina short-term rental tax rates vary by season?

Most South Carolina tax rates are constant year-round, but some jurisdictions implement seasonal variations. Coastal communities impose higher fees during peak summer months or hurricane season, while mountain areas have seasonal adjustments for infrastructure demands. Some special assessment districts include seasonal components requiring verification with local tax authorities.

Conclusion

Operating a short-term rental in South Carolina requires attention to complex tax and regulatory requirements. Staying compliant with state sales tax and accommodations taxes, local fees, and licensing protects investments and ensures profitability. Understanding that requirements vary by location and change frequently is essential for success.

At Surge, we help short-term rental hosts navigate challenges while maximizing property potential. Our approach combines expert compliance management with proven revenue optimization strategies, allowing owners to enjoy short-term rental benefits without regulatory stress. Contact us for a free consultation to discover how we can help your South Carolina short-term rental thrive while maintaining full compliance with regulations.