Key figures
South Carolina receivables
2026, with sources
SaaS is taxable here
South Carolina taxes communications services, and the Department of Revenue treats access to cloud software as a charge for access to an application service provider within that category. Its private letter rulings in 2020 found online software subscriptions taxable, including training sold as part of the subscription. That puts South Carolina apart from Georgia and North Carolina, which generally do not tax SaaS.
Software downloaded with no tangible medium has been treated as not taxable, and a data processing exclusion can apply where the provider manipulates the customer’s data. Because private letter rulings bind only the company that asked, a SaaS seller with an unusual product should look at its own facts.
Gross revenue nexus
Revenue Ruling 18-14 sets the economic nexus threshold at more than $100,000 of gross revenue from sales into South Carolina in the current or previous calendar year, counting taxable and exempt sales and services alike. There is no transaction-count test.
Example: a Delaware SaaS company billing $9,000 a month to South Carolina customers crosses $100,000 in its twelfth month. It registers with the Department of Revenue, starts charging 6% plus the local rate at each customer’s location, and files monthly by the 20th.
Rates and returns
The state rate is 6%, and counties may add local taxes with voter approval. Returns are monthly by default, due the 20th of the following month; quarterly or annual filing requires the Department’s approval.
Deadlines
- 20th of the month after the periodSales and use tax return (monthly unless approved otherwise)Form ST-3
The federal baseline
This page covers what South Carolina adds. The federal rules underneath it apply here too.
Common questions
Is our SaaS taxable in South Carolina?
Yes, in most cases. The Department of Revenue treats charges for access to cloud software as taxable communications charges for access to an application service provider, and its 2020 private letter rulings applied that to online software subscriptions for business customers. There is no general business-use exemption. A data processing exclusion can apply where the provider manipulates the customer’s data, which turns on the facts.
Which sales count toward South Carolina’s $100,000?
All of them. South Carolina’s $100,000 threshold counts gross revenue from all sales into the state, including exempt sales, wholesale sales and services, whether taxable or not, in the current or previous calendar year. A SaaS company with $120,000 of South Carolina revenue has crossed it, and its subscriptions are taxable as well.
Receivables next door
- GAGeorgia receivablesGeorgia’s rate is 4% plus local option taxes, remote sellers register at $100,000 or 200 sales, and electronically delivered software and SaaS are generally not taxable.
- NCNorth Carolina receivablesNorth Carolina’s rate is 4.75% plus county and transit tax, remote sellers register at $100,000 of gross sales with a 60-day lag from July 2026, and remotely accessed SaaS is not taxed.
Founder guides on this
- Sales taxSales tax nexus for startups: when you owe tax in a stateSince Wayfair, selling into a state can create a sales tax obligation. How economic nexus works, why SaaS is taxable in some states and when to register.
- RevenueDeferred revenue for SaaS startups, explainedAn annual prepayment is cash today and revenue over a year. How deferred revenue works under ASC 606, why it’s a liability, and the schedule behind it.
- StripeHow to reconcile Stripe payouts to your booksA Stripe payout is charges less fees, refunds and disputes, batched across days. How to book it gross, tie it to the bank, and keep revenue right.
More of the South Carolina guide
- AccountingAccounting and state tax in South CarolinaCorporate tax, conformity to federal rules, apportionment and what it does to your books
- PayablesPayables and contractors in South CarolinaPaying vendors and contractors: 1099 filing, use tax, contractor tests and withholding
- PayrollPayroll taxes and employer rules in South CarolinaWithholding, unemployment insurance, paid leave, minimum wage and the rules on paydays
- ComplianceCompliance and filings in South CarolinaRegistering to do business, annual reports, franchise tax and the filing calendar
- AdvisoryAdvisory: credits and decisions in South CarolinaCredits, incentives and the decisions that are cheaper to get right the first time
Sources
Checked against each agency’s own page on . Rates and thresholds change, usually on January 1.
General information for US companies, not tax, legal or accounting advice for yours. Rules and thresholds change; confirm the specifics with a CPA or the agency before you act on them.