South Carolina Resale Certificate Guide 2026: How to Get Yours
South Carolina has a growing economy driven by manufacturing, tourism, military spending, and a rapidly expanding tech sector. The state imposes a 6% state sales tax with local county taxes that can add up to 1% more, for a combined maximum rate of up to 9% in some areas. South Carolina also has a unique $300 cap on local tax per item, which benefits retailers dealing in big-ticket goods. This guide covers everything you need to know about Form ST-8A and the resale certificate process for 2026.
South Carolina Sales Tax Basics
State and Local Rates
The South Carolina state sales tax rate is 6%. Counties can impose a local option sales tax of up to 1%, which brings the combined rate to as high as 7% in many areas. Some counties also impose a capital project tax or transportation tax, which can push the effective combined rate higher in specific jurisdictions (up to 9% in certain locations).
The $300 Local Tax Cap
South Carolina caps the local tax at $300 per item. This means once the local tax on a single item reaches $300, no additional local tax is charged on that item. For example, if you buy a vehicle for $40,000 in a county with a 1% local tax, the local tax is capped at $300, not the $400 that 1% would normally produce.
For retailers selling high-value goods like vehicles, boats, or heavy equipment, this cap provides significant relief. Your resale certificate eliminates the tax entirely on qualifying purchases, but understanding the cap matters for items you sell to end consumers.
Use Tax
South Carolina imposes a 6% use tax (plus applicable local taxes) on goods purchased from out-of-state vendors when the seller does not collect South Carolina tax. Items purchased for resale are exempt.
What Is Taxable in South Carolina?
- Most tangible personal property is taxable
- Groceries (unprepared food) are taxed at a reduced 0% state rate (local taxes still apply)
- Prescription drugs are exempt
- Clothing is fully taxable (no clothing exemption)
- Most services are not taxable, with some exceptions
- Accommodations (hotels, short-term rentals) are subject to a 7% state accommodations tax plus local taxes
What Form Do You Need?
South Carolina uses Form ST-8A, the Resale Certificate. This form is issued by the South Carolina Department of Revenue (SC DOR).
About Form ST-8A
Form ST-8A is a straightforward resale certificate. It documents that the buyer is purchasing tangible personal property for resale and provides the legal basis for the seller to not charge sales tax.
Key fields include:
- Purchaser's business name and address
- South Carolina retail license number
- Description of goods purchased for resale
- Seller's name
- Purchaser's signature and date
Where to Get the Form
Form ST-8A is available as a free download from the SC DOR website. The form is a single page and easy to complete.
Who Needs a South Carolina Resale Certificate?
Any business purchasing tangible personal property for resale in South Carolina needs a resale certificate. This includes:
Retailers buying inventory for sale in physical stores, online, at flea markets, or through pop-up events.
Wholesalers and distributors purchasing goods for redistribution to other businesses.
Online sellers registered in South Carolina who purchase inventory for resale through Amazon, eBay, Etsy, Shopify, or other platforms.
Manufacturers buying raw materials that become part of a finished product for sale. South Carolina also offers exemptions for machinery used directly in manufacturing.
Restaurants and food businesses purchasing food ingredients that will be prepared and sold as meals.
Who Does NOT Qualify
- Consumers purchasing for personal use
- Businesses buying supplies, equipment, or tools for internal operations
- Contractors purchasing materials that will be permanently installed into real property
How to Apply for a South Carolina Resale Certificate
Step 1: Register for a South Carolina Retail License
You must have a South Carolina retail license before you can issue a valid ST-8A. Registration is handled through the SC DOR.
What you need to register:
- Federal EIN or SSN (for sole proprietors)
- Business legal name and DBA (if applicable)
- Business physical address and mailing address
- Type of business entity
- Description of products sold
- Expected start date of business operations
- NAICS code for your business
Registration fee: $50. South Carolina charges a one-time $50 fee for a retail license. This fee is non-refundable.
Apply online through the SC DOR's MyDORWAY portal.
Processing time: Online applications are typically processed within 7 to 14 business days.
Step 2: Complete Form ST-8A
Once you have your retail license, download and complete Form ST-8A. Enter your business details, retail license number, and describe the products you intend to purchase for resale.
Step 3: Provide the Certificate to Your Suppliers
Give the completed ST-8A to every vendor you want to buy from without paying sales tax. The vendor retains the certificate on file as documentation.
Want help with the process? We handle everything from registration to certificate completion.
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South Carolina-Specific Rules You Should Know
The $50 Registration Fee
Unlike most states that offer free sales tax registration, South Carolina charges a $50 one-time fee for a retail license. This fee applies per location if you have multiple business locations in the state. Budget for this when setting up your business.
Manufacturing Exemptions
South Carolina provides generous tax exemptions for manufacturers. Machinery, machine tools, and repair parts used in manufacturing are exempt from sales tax. Raw materials that become part of the finished product are also exempt under the resale rules.
If your business both manufactures and sells, you may benefit from multiple exemption categories. Make sure to claim the correct exemption type for each purchase.
Agricultural Exemptions
Farm machinery, equipment, and supplies used for agricultural production are exempt from South Carolina sales tax. This is separate from the resale exemption. Farmers who sell their products at retail (farm stands, farmers markets) still need a retail license and resale certificate for inventory purchases.
The Max Tax on Specific Items
South Carolina imposes a maximum tax of $500 on certain items including:
- Aircraft
- Motor vehicles
- Motorcycles
- Boats
- Trailers and semi-trailers
- Manufactured homes
- Certain other items specified by statute
Dealers in these items should understand both the max tax rules and how the resale exemption applies to their inventory purchases.
Economic Nexus
South Carolina's economic nexus threshold is $100,000 in gross revenue from sales to South Carolina buyers in the current or prior calendar year. There is no separate transaction count threshold.
Marketplace Facilitator Rules
South Carolina requires marketplace facilitators to collect and remit sales tax on behalf of third-party sellers when the facilitator meets the economic nexus threshold. If you sell exclusively through a marketplace, the marketplace handles your South Carolina obligations.
Common Mistakes with South Carolina Resale Certificates
Mistake 1: Forgetting the $50 License Fee
New businesses sometimes assume registration is free (as it is in most states). Budget for the $50 fee and allow time for processing before you need to start purchasing inventory.
Mistake 2: Using the Certificate for Non-Resale Purchases
Buying office supplies, company equipment, or personal items with a resale certificate is a serious violation. SC DOR auditors compare your exempt purchases against your reported sales to identify discrepancies.
Mistake 3: Not Accounting for Local Tax Variations
With county rates varying across the state, your point-of-sale system needs to be configured for the correct combined rate at each location where you sell. Undercollecting by even 0.5% across thousands of transactions adds up quickly.
Mistake 4: Ignoring the $300 Local Tax Cap
On the flip side, if you sell high-value items, make sure your system applies the $300 local tax cap correctly. Overcollecting tax creates liability and customer complaints.
How Much Can You Save?
South Carolina's 6% state rate (plus local taxes) produces significant savings with a resale certificate.
| Annual Inventory Purchases | Tax Saved (6% State Only) | Tax Saved (7% Combined) |
|---|---|---|
| $25,000 | $1,500 | $1,750 |
| $50,000 | $3,000 | $3,500 |
| $100,000 | $6,000 | $7,000 |
| $250,000 | $15,000 | $17,500 |
| $500,000 | $30,000 | $35,000 |
Use our savings calculator to calculate your exact savings based on your county's rate.
South Carolina Resale Certificate FAQs
Q: Does the South Carolina resale certificate expire? A: Form ST-8A does not have an expiration date. However, it is only valid while your retail license is active. Vendors may request updated certificates periodically.
Q: Is there a fee for the retail license? A: Yes. South Carolina charges a one-time $50 fee for a retail license.
Q: Can out-of-state businesses use Form ST-8A? A: Yes. Out-of-state businesses purchasing goods in South Carolina for resale can provide a completed ST-8A to the seller. Include your home state's sales tax registration number.
Q: Is South Carolina part of the Streamlined Sales Tax (SST)? A: Yes. South Carolina is an SST member state and accepts the SST certificate of exemption as an alternative to Form ST-8A.
Q: Are groceries taxed in South Carolina? A: Unprepared food is exempt from the 6% state sales tax, but local county taxes still apply. Prepared food is taxable at the full combined rate.
Get Started with Your South Carolina Resale Certificate
South Carolina's retail license is straightforward to obtain, and the $50 fee is a small price for the ongoing tax savings. Register, get your license, complete your ST-8A, and start saving.
- Expert registration guidance
- Help completing Form ST-8A
- Ongoing compliance support
Get Your Resale Certificate -->
For more details on South Carolina's requirements, visit our South Carolina state page.
South Carolina's $300 local tax cap and SST membership make it a business-friendly state for retailers. Get your retail license, document your exemptions, and keep detailed records for audit protection.
Related Articles
- What Is a Resale Certificate? - Start with the fundamentals if you are new to resale certificates.
- Understanding Sales Tax Nexus - Learn when you are required to register in South Carolina and other states.
- Multi-State Resale Certificate Guide - Selling across state lines? Learn about multi-jurisdiction certificates.