South Carolina Hospitality and Accommodations Taxes: City and County Rates for Restaurants and Rentals
South Carolina Hospitality and Accommodations Taxes: City and County Rates for Restaurants and Rentals
If you sell prepared meals or rent a room, house, or condo in South Carolina, you will probably deal with a hospitality tax or an accommodations tax. Many owners expect a statewide tax like the one that applies to general sales. South Carolina does not have one. Both taxes are local. Cities and counties decide whether to levy them, set the rate within state limits, and collect the money. The South Carolina Department of Revenue (SCDOR) does not collect the local hospitality or accommodations tax.
This guide covers the caps, how the taxes stack, the special fees in several popular destinations, and where to confirm the rate for your address. Rates are set by local ordinance and can change, so confirm the current figure before you print a menu or publish a nightly rate.
Informational content, not legal or tax advice. This guide explains general South Carolina rules. Your obligations depend on your location, your entity type, and your specific sales. For complex situations, talk with a South Carolina attorney or a certified public accountant (CPA).
South Carolina has no statewide hospitality tax
There is no state hospitality tax in South Carolina. What exists is a set of local taxes with state limits. A city or county may levy up to 2% on prepared food and drink under S.C. Code Section 6-1-720. It may levy up to 3% on accommodations under S.C. Code Section 6-1-520. Your local government sets the actual rate, which can be lower than the cap, and it collects the revenue.
Search results often mix these terms with state taxes. The table below separates them so you can see which level of government applies to each charge.
| Charge | Maximum rate | Who sets and collects it |
|---|---|---|
| Local hospitality tax on prepared food and drink (S.C. Code Section 6-1-720) | Up to 2% | City or county |
| Local accommodations tax (S.C. Code Section 6-1-520) | Up to 3% | City or county |
| State accommodations tax | 2% | State |
| Sales tax on lodging | 5% | State |
| Special fees (for example, Columbia, Hilton Head Island, Myrtle Beach, Horry County) | Set by local ordinance | City or county |
Hospitality tax on restaurants and prepared food
The local hospitality tax applies to prepared food and drink sold for consumption. Restaurants, bars, and other food businesses in a taxing jurisdiction collect it from customers as the local ordinance requires. The rate is set by the city or county where the business is located, not by the state.
Three rules change how much you owe and where you file:
- Location decides the rate. Two restaurants a few miles apart can pay different rates if one is inside city limits and the other is in unincorporated county territory.
- The county share inside a city is limited. A county may levy no more than 1% hospitality tax inside a city unless the city consents to a higher county rate.
- Filing schedules come from the ordinance. Each local ordinance sets when you file and pay. Monthly filing is common, but do not assume it. Ask the city or county for its return form and due dates.
If you sell tangible goods, such as a restaurant selling prepared meals, you must hold a South Carolina Retail License from SCDOR. The license is a one time, nonrefundable $50 fee per location, applied for through the Business Tax Application on MyDORWAY. Confirm your category with SCDOR. Retail food permits come from the South Carolina Department of Agriculture. Older guides and signs still refer to DHEC, which was split in 2024, so confirm you are applying to the correct agency.
Accommodations tax on hotels and rentals
The local accommodations tax applies to lodging and may be levied up to 3% under S.C. Code Section 6-1-520. Hotels and motels are the core of the tax base. Many local ordinances also reach short-term rentals such as vacation homes and condos, but whether a specific rental is taxable depends on the local ordinance. Confirm coverage with the city or county before you list the property.
Lodging carries several layers. At the caps alone, a $200 room charge could carry up to $4 in state accommodations tax (2%), $10 in state sales tax on lodging (5%), and $6 in local accommodations tax (3%), for a total of $20 before any special fee. This example uses maximum rates only. It does not reflect any particular city, and it leaves out other local charges and special fees, which you must check separately.
Special fees in popular destinations
Several destinations add special fees on top of the standard local taxes. These fees are set by local ordinance and can change, so treat the figures below as a starting point and confirm each one.
- Columbia: a 3% Tourism Development Fee on lodging.
- Hilton Head Island: a 2% Beach Preservation Fee.
- Myrtle Beach: a 1% hospitality fee plus a 1% Tourism Development Fee sales tax.
- Horry County: a county hospitality fee. Check with Horry County for the current rate and the properties it covers.
Myrtle Beach and Horry County
Myrtle Beach is the most common search for these taxes, and it is also the most layered. A restaurant or rental there may face the city's hospitality fee and Tourism Development Fee, the local accommodations tax, state taxes, and any county fee that applies to the address. The stack changes depending on whether a property is inside the city limits, inside another municipality, or in unincorporated Horry County.
Horry County is also one of the nine South Carolina counties that levy a local business license tax. Its license year runs May 1 to April 30, and the license is due April 30. Renewals are handled through localblrenewal.com. Ask Horry County whether your address needs a county license, a municipal license, or both, because the answer determines which office you pay.
Do not rely on a single statewide table for your numbers. A Revenue and Fiscal Affairs Office (RFA) survey for fiscal year 2023 to 2024 lists local rates as reported, but some city entries do not match current local ordinances. Use the rate published by the city or county for your address.
Business licenses and registrations you may also need
South Carolina does not issue a general statewide business license. Secretary of State registration is not a business license. Most cities levy a local business license tax, and only nine counties do: Beaufort, Charleston, Dorchester, Horry, Jasper, Marion, Orangeburg, Richland, and Sumter. Apply through the county or municipality where the business is located.
- SCDOR Retail License: a one time, nonrefundable $50 fee per location for sellers of tangible goods. Apply through the Business Tax Application.
- Retail food permit: issued by the South Carolina Department of Agriculture, not DHEC.
- Trade names (DBA): South Carolina has no state DBA filing, and the Secretary of State does not register DBAs. Record the name with your county or municipality, usually on the local business license, and list it as a trade name on your IRS EIN application and your SCDOR Business Tax Application. See the South Carolina Business One Stop DBA guidance.
- LLCs: a standard LLC files no annual report in South Carolina. The Articles of Organization filing fee is $110 through Business Entities Online.
Filing and recordkeeping
Set up your point of sale or booking software to track each local tax as its own line, with the jurisdiction recorded. Restaurants should separate hospitality tax from food sales, and rental operators should separate accommodations tax from room charges and fees. Keep each periodic return, the source sales data, and any remittance confirmation for as long as your local ordinance requires. Check with a CPA about your records, especially if you operate in more than one jurisdiction.
Where to confirm the current rate
Use official sources for every figure you publish or price into a menu or nightly rate:
- The city or county's official website, for the hospitality, accommodations, and special fee ordinance that applies to your address.
- South Carolina Department of Revenue for state taxes and the Retail License.
- localblrenewal.com for local business license renewals.
- South Carolina Secretary of State, Business Entities Online for entity filings.
- South Carolina Small Business Development Centers (SC SBDC) for advising on registration and recordkeeping.
Common questions
Is there a statewide hospitality tax in South Carolina?
No. Hospitality taxes are local. The state sets maximum rates for local hospitality and accommodations taxes, and cities and counties set the actual rates.
Who collects the local hospitality and accommodations tax?
The city or county where the business is located collects it. SCDOR does not collect it. Pay it to the local office named in the ordinance.
Can a county tax my restaurant inside city limits?
Yes, but within limits. A county may levy no more than 1% hospitality tax inside a city without city consent. For accommodations inside a city, the county limit is 1.5% without city consent.
Do I need a lawyer or accountant?
A single-location operator can often handle registration with the checklist above. Consult a CPA if you operate in several jurisdictions, use a short-term rental management service, or are unsure which tax applies. Talk with an attorney before you sign a lease or purchase agreement that depends on local tax treatment.
This article is informational only and is not legal or tax advice. Hospitality and accommodations tax rates and filing rules are set by local ordinance and can change. Confirm current rates with your city or county and with the South Carolina Department of Revenue before you file or price your business. For complex situations, consult a qualified attorney or a CPA licensed in South Carolina.