South Carolina Short-Term Rental Tax Guide for Airbnb Hosts (2025)
South Carolina is one of the Southeast's premier short-term rental states, driven by three distinct market types: the historic urban jewel of Charleston, the mass-market beach destination of Myrtle Beach, and the upscale resort community of Hilton Head Island. Combined, these markets generate hundreds of millions in annual STR revenue — and with it, a significant state tax obligation that hosts must understand.
South Carolina's key differentiator from most states is its dedicated 7% accommodations tax on short-term rentals, which sits alongside the regular state sales tax. This guide covers how these taxes work, how Airbnb handles them, and how to maximize your deductions to keep more of what you earn.
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South Carolina STR Tax Overview
South Carolina short-term rental hosts face a multi-layer tax structure. The state accommodations tax (7%) applies specifically to rentals under 90 days. Local taxes add to this.
| Tax Type | Rate | Notes |
|---|---|---|
| SC State Accommodations Tax | 7% | Airbnb collects; applies to rentals under 90 days |
| SC State Sales Tax | 5% | May also apply; check with SC DOR |
| Local Accommodations Tax | 1.5–3% | County/municipality level; varies |
| SC State Income Tax | 0–6.5% | Graduated; on net rental income |
South Carolina State Accommodations Tax
The 7% state accommodations tax is South Carolina's primary lodging tax. It applies to the total rental charge including any mandatory fees charged to guests (cleaning fees, amenity fees, etc.). Airbnb is registered as a marketplace facilitator in South Carolina and collects and remits the accommodations tax plus the state sales tax for qualifying transactions.
Even if Airbnb collects your taxes, you must still register with the South Carolina Department of Revenue at dor.sc.gov/taxes/accommodations. Registration is free and required for all STR operators. You'll need a South Carolina retail license and accommodations tax license.
Local Accommodations Taxes
South Carolina counties and municipalities can impose their own local accommodations taxes (up to 1.5% county + additional amounts at the municipal level). For example:
- Charleston County: Local accommodations tax adds approximately 1.5%; combined with state taxes, Charleston hosts face ~11–12% effective rate
- Horry County (Myrtle Beach): Combination of local accommodations taxes brings effective rate to approximately 11–12%
- Beaufort County (Hilton Head): Hilton Head Island imposes additional municipal taxes; effective rate approximately 12–13%
South Carolina State Income Tax
South Carolina taxes net rental income at graduated rates:
- 0% on the first $3,200 of taxable income
- 3% on $3,201–$6,410
- 4% on $6,411–$9,620
- 5% on $9,621–$12,820
- 6% on $12,821–$16,040
- 6.5% on income above $16,040
South Carolina is in the process of reducing its top rate toward 6% over several years. Net rental income from Schedule E flows directly to your SC Form SC1040. South Carolina generally conforms to federal depreciation rules.
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SC STR Licensing Requirements
South Carolina doesn't have a statewide STR licensing law, but requires tax registration and most local governments have their own requirements:
Statewide Requirements
- SC Retail License: Required for all businesses collecting sales tax in SC; $50 application fee
- SC Accommodations Tax License: Required to collect/remit accommodations tax; register at dor.sc.gov
Key Market Licensing
- Charleston: City of Charleston requires annual STR business license; ordinance distinguishes owner-occupied from non-owner-occupied; non-owner-occupied rentals may face restrictions in certain zones
- Myrtle Beach: City of Myrtle Beach requires annual STR registration; Horry County may have additional requirements for unincorporated areas
- Hilton Head Island: Town of Hilton Head Island requires annual STR registration; properties must meet safety inspection requirements
Top SC STR Markets
Charleston
Charleston is one of America's most visited cities, with year-round tourism anchored by its antebellum architecture, culinary scene, and festival calendar. ADRs of $200–$350/night are common in the historic district and neighboring areas. The city's STR market is competitive and increasingly regulated.
Myrtle Beach
The Grand Strand is a high-volume, relatively lower-rate market. Summer dominates (June–August), with occupancy rates of 85–95% and ADRs of $150–$250/night. Off-season demand is modest. Condos and beach houses are the primary property types.
Hilton Head Island
Hilton Head is an upscale resort community with higher ADRs ($250–$500/night) and strong year-round demand from golf tourism, weddings, and beach visitors. The island has a more regulated STR environment with active permit requirements.
Key Deductions for South Carolina STR Hosts
Coastal Property-Specific Deductions
- Hurricane and wind insurance: Required for most coastal SC properties; premiums are fully deductible
- Flood insurance: NFIP or private flood insurance for waterfront or flood-zone properties
- Storm shutter installation and maintenance: Hurricane protection systems on rental properties
- Saltwater corrosion repairs: HVAC, exterior fixtures, and structural components degrade faster in coastal environments; repairs are deductible
- Pool and dock maintenance: Year-round maintenance for coastal amenities
Standard Rental Deductions
- Depreciation: 27.5 years on residential structure
- Property management fees (common in resort markets; typically 20–30% of revenue)
- Cleaning, linens, and turnover supplies
- HOA fees (prevalent in Hilton Head and gated communities)
- Utilities proportional to rental use
- Mortgage interest and property taxes (proportional to rental use)
- Platform fees (Airbnb, VRBO service fees)
- Travel to the property for management purposes
Track Every South Carolina Deduction Automatically
DeductFlow connects to Airbnb and automatically categorizes your insurance premiums, HOA fees, property management costs, and every other SC rental expense throughout the year.
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Disclaimer
This guide is for informational purposes only and does not constitute tax, legal, or financial advice. Tax laws and local ordinances change frequently. Consult a qualified CPA or tax attorney familiar with South Carolina STR regulations before making tax decisions. Rates and rules cited reflect information available as of the publication date and may have since changed.