What is Exempt from Sales Tax in South Carolina: 2025 Business Guide

What is Exempt from Sales Tax in South Carolina in 2025?

South Carolina offers several sales tax exemptions to reduce costs for businesses and consumers.

Table: 2025 South Carolina Sales Tax Exemptions

Exemption Type	Eligible Items/Transactions	Example	Savings (6% State Tax)
Groceries	Unprepared food items	$1,000 in groceries	$60
Prescription Medications	Medicines prescribed by a licensed provider	$500 in prescriptions	$30
Medical Equipment	Durable medical goods	$10,000 in medical devices	$600
Manufacturing Machinery	Equipment used directly in production	$100,000 in machinery	$6,000
Resale Goods	Inventory purchased for resale	$50,000 in retail inventory	$3,000
Government Sales	Purchases by federal, state, or local entities	$20,000 in government transactions	$1,200
Nonprofits	Sales to 501(c)(3) organizations	$10,000 in nonprofit purchases	$600
Tax-Free Weekend	Clothing, school supplies, computers	$500 in back-to-school purchases	$30

Notes

• Documentation, such as resale certificates or nonprofit status, is required to claim exemptions.
• South Carolina’s tax-free weekend provides additional savings for consumers on specific items.

Table: 2025 Tax-Free Items for Businesses in SC

South Carolina provides a range of sales tax exemptions for businesses. Below is a detailed breakdown with specific examples of exempt items:

Exemption Category	Exempt Items (Specific Examples)
Manufacturing Machinery	Equipment like assembly line machinery, conveyor belts, industrial robots, 3D printers, CNC machines, and packaging machines used directly in production.
Raw Materials	Inputs such as steel beams, aluminum sheets, chemical solvents, plastic pellets, wood, or textiles used in manufacturing finished products.
Goods for Resale	Products like wholesale clothing, electronics, furniture, books, and footwear purchased for resale to end customers.
Agricultural Equipment	Items like tractors, plows, irrigation systems, fertilizers, livestock feed, seeds for planting, and harvesting equipment used on farms.
Fuel for Production	Energy sources such as natural gas, propane, coal, diesel fuel, or electricity directly powering manufacturing or agricultural processes.
Nonprofit Purchases	Items like office furniture, educational books, computers, printers, and vehicles used by 501(c)(3) nonprofit organizations for mission-related activities.
Government Transactions	Office supplies, vehicles, IT equipment, or construction materials purchased directly by federal, state, or local government agencies for official use.
Medical Supplies	Prescription medications, durable medical equipment like wheelchairs, oxygen tanks, X-ray machines, surgical instruments, and hospital beds used in healthcare.

Eligibility Criteria for Business Tax Exemptions in South Carolina

To qualify for sales tax exemptions in South Carolina, businesses must purchase goods for resale, manufacturing equipment, agricultural supplies, or medical devices. Nonprofits and government entities also qualify.

A valid resale certificate, 501(c)(3) status, or government exemption documentation is required for approval and compliance.

How to Get a Valid Resale Certificate in South Carolina

Obtaining a resale certificate in South Carolina involves registering your business and completing the required documentation. Here's a step-by-step guide:

Step	Details
Register for a Sales Tax License	Apply through the South Carolina Department of Revenue (SCDOR) to obtain a sales tax license.
Complete Form ST-8A	Fill out the Resale Certificate (Form ST-8A) with your business details, license number, and description of resale goods.
Submit to Vendors	Provide the completed ST-8A form to suppliers when making tax-exempt purchases.
Maintain Active Status	Ensure your sales tax license remains active and renew certificates as required.

How to Get Government Exemption Documentation in South Carolina

To claim sales tax exemptions for government entities in South Carolina, follow these steps:

Step	Details
Register with SCDOR	Government entities must register with the South Carolina Department of Revenue (SCDOR).
Complete Form ST-10	Fill out the ST-10 Exemption Certificate, providing the entity’s name, address, and reason for exemption.
Provide Documentation	Submit the completed ST-10 form to vendors when making tax-exempt purchases.
Ensure Compliance	Use exemptions only for official government purchases and maintain proper records for audits.

FAQs

What are the 4 exemptions in SC?

South Carolina offers exemptions for manufacturing, agriculture, resale, and nonprofits, subject to eligibility and proper documentation.

Is there tax on food in South Carolina?

In South Carolina, most unprepared food purchases are exempt from sales tax, but local taxes may still apply.

Are there sales tax holidays in South Carolina?

Yes, South Carolina hosts an annual sales tax holiday in early August, exempting clothing, school supplies, computers, and select items from the 6% state sales tax.

What is tangible personal property?

Tangible personal property refers to physical items that can be touched, moved, or measured, such as furniture, equipment, machinery, clothing, and electronic devices.

Automate South Carolina Sales Tax Exemptions for Your Business

Managing South Carolina sales tax compliance can be complex, from understanding sales tax exemption rules for Washington businesses to verifying local tax rates, tracking exemptions, fiscal responsibilities, and meeting filing deadlines.

Kintsugi simplifies this process with powerful automation tools designed for modern businesses.

Challenge	How Kintsugi Helps	Benefits
Exemption Certificate Management	Tracks, stores, and validates resale and exempt use certificates for compliance.	Reduces risk of invalid exemptions and penalties.
Applying Exemptions	Automatically applies exemptions for resale, manufacturing, and nonprofit sales.	Maximizes tax savings on qualifying transactions.
Sales Tax Rate Accuracy	Automates accurate tax calculations for South Carolina’s 6% state rate plus local taxes.	Prevents errors and overpayment.
Exempt Sales Reporting	Generates detailed exempt sales reports for South Carolina Department of Revenue filings.	Streamlines tax filing and ensures compliance.
Audit Readiness	Centralizes all exemption-related documentation for seamless audit preparation.	Minimizes audit risks and saves time.

Streamlining Compliance With South Carolina Sales Tax Laws

Let Kintsugi manage your exempt sales in South Carolina so you can focus on growing your business. Visit our Product Platform and Pricing pages to learn more and get started today!