South Carolina collects a 5% state sales tax rate on the purchase of all vehicles outside the state, or a 5% infrastructure maintenance fee for in-state purchases.
In addition to other expenses like registration, title fees, and plate fees, South Carolina collects a 5% infrastructure maintenance fee (IMF) on all vehicle purchases in the state. If you purchase a vehicle out of state, you’ll pay a 5% sales tax.
When purchasing a new vehicle in the state, South Carolina residents will owe an infrastructure maintenance fee of 5%, but no more than $500.
In some cases, local taxes on vehicle purchases may also apply.
Car buyers will typically also need to pay other taxes and fees, such as for titling and registration.
How much is the car sales tax rate in South Carolina?
If you purchase, title, and register your vehicle in South Carolina: You’ll pay an infrastructure maintenance fee (IMF) instead of sales tax. The South Carolina IMF is 5% on all vehicles sold for less than $10,000 or a total of $500 for vehicles sold for over $10,000.
: The South Carolina Department of Revenue collects a 5% state sales tax rate. This vehicle tax applies to brand-new and used vehicles that you purchase from a dealership, as well as used vehicles purchased from a private seller.
To prove you paid your sales tax to the county treasurer and to register your vehicle, you’ll need to bring your property tax receipt to the DMV.
Different municipalities—such as your town or county—may assign additional local taxes on vehicle purchases as well.
How are car trade-ins taxed in South Carolina?
A popular option when purchasing a new car is to first
for a credit towards your new purchase. Because sales tax or IMF is calculated on the purchase price, the value of your trade-in won't count towards either bill.
For example: Let’s say you are trading in your old
for a used Hyundai Santa Fe. You get a $1,500 credit for your Camry towards the sticker price of $11,230 for the Santa Fe. That brings your purchase price down to $9,370.
Because the actual purchase price is $9,370, you will now pay 5% of that cost to satisfy your taxes, and you’ll owe $486.50. Without the trade-in credit, you would owe taxes on the full $11,230 purchase price—or the highest IMF amount of $500.
Any other rebates or incentives will be disregarded when calculating sales tax or IMF.
How to calculate sales tax on a car in South Carolina
If you’re purchasing a car in SC and taking it to another state: Simply multiply the sales price by 5%, or 0.05. A car that has a bill of sale of $6,450 will have a tax bill of $322.50 ($6,450 x 0.05 = $322.50).
If you’re a SC resident who will be titling and registering your car in-state: Your job is even easier. If the vehicle costs you more than $10,000, you simply pay $500 in IMF—and that’s it! If the vehicle is priced lower than $10,000, then do the same math as above.
Exemptions from South Carolina sales tax
Not everyone has to pay sales tax on their South Carolina vehicle purchases—and not everyone has to pay IMF, either.
Exemptions from the South Carolina IMF include:
You’re a nonresident who will be purchasing a car in South Carolina and registering it elsewhere. In this case, you’ll be charged the 5% sales tax rate plus any local taxes.
Vehicles used for short-term rentals are also exempt from IMF and charged sales tax instead.
In short, when it comes to sales tax and IMF, you pay one or the other—but never both!
Finally, there are only a few exceptions for both the IMF and sales tax being owed:
If the vehicle was purchased by a nonresident and is being delivered by you or a common carrier outside South Carolina
If the vehicle is purchased by a member of the military who is stationed in South Carolina
Nonresidents whose state will not apply a credit for the tax paid in South Carolina
How to estimate South Carolina sales tax, title, and registration fees
It’s important to get informed ahead of time as to what costs you can expect for a vehicle purchase.
We’ve gone over sales tax and IMF, but you’ll also have to pay
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