South Carolina does not charge a traditional car sales tax. Instead, when you buy a vehicle you pay a one-time Infrastructure Maintenance Fee of 5% of the purchase price, capped at $500 no matter how expensive the car is.1South Carolina Legislature. South Carolina Code 56-3-627 – Infrastructure Maintenance Fee Vehicles subject to the fee are fully exempt from both state and local sales and use tax.2South Carolina Department of Revenue. South Carolina Infrastructure and Economic Development Reform Act The $500 cap gives South Carolina one of the lowest effective vehicle purchase taxes in the country, but the state also charges an annual property tax on vehicles that surprises many buyers.
How the 5% Fee Is Calculated
For a dealer purchase, the 5% applies to the “gross proceeds of sales,” meaning the transaction price after any trade-in is deducted.3South Carolina Department of Revenue. Sales and Use Tax Guide for Automobile and Truck Dealers Because the fee is capped at $500, anything above roughly $10,000 after trade-in hits the ceiling. A $15,000 car and a $75,000 car both trigger the same $500 fee.1South Carolina Legislature. South Carolina Code 56-3-627 – Infrastructure Maintenance Fee
A trade-in cuts the taxable amount directly. Buy a $9,000 car and trade in a vehicle worth $4,000, and you pay 5% of $5,000, or $250. The gross proceeds definition explicitly excludes trade-in value.3South Carolina Department of Revenue. Sales and Use Tax Guide for Automobile and Truck Dealers
Manufacturer rebates work differently. The statute does not carve out an exclusion for rebates the way it does for trade-ins, so whether a rebate reduces your fee depends on how the deal is structured. Before signing, ask the dealer to show you the exact figure the 5% is being calculated on.
Leased vehicles follow the same 5% rate and $500 cap based on the gross proceeds of the transaction.3South Carolina Department of Revenue. Sales and Use Tax Guide for Automobile and Truck Dealers
Buying from a Private Seller
Private party sales use the same 5% rate and $500 cap, but the fee is calculated on the vehicle’s fair market value rather than the price you actually paid.1South Carolina Legislature. South Carolina Code 56-3-627 – Infrastructure Maintenance Fee Buy a car from a friend for $2,000 when the DMV values it at $6,000, and you owe 5% of $6,000. The DMV uses standard valuation guides, so a bargain price won’t shrink the bill.
Vehicles First Titled in Another State
Move to South Carolina with a car already titled elsewhere and you pay a flat $250 instead of the 5% calculation.1South Carolina Legislature. South Carolina Code 56-3-627 – Infrastructure Maintenance Fee This applies to new residents transferring plates and to vehicles bought out of state and titled there before being brought home.4SCDMV. Fees The trigger is where the vehicle was first titled. A car purchased out of state but titled for the first time in South Carolina pays the regular 5% (up to $500).
Family Transfer Exemption
Transferring a vehicle to an immediate family member without money changing hands is exempt. The statute defines immediate family as a spouse, parent, child, sibling, grandparent, or grandchild.5South Carolina Legislature. South Carolina Code of Laws Title 56 Chapter 3 Gifts and inheritances between those relatives owe nothing, but you need documentation of the relationship and confirmation that no purchase price was involved.
Relatives outside that list, including aunts, uncles, nieces, nephews, and in-laws, don’t qualify. The exemption also disappears the moment money is exchanged. A parent selling a car to a child at a discount still owes the fee based on fair market value.
What Counts as a Vehicle
The fee applies to anything required to be registered with the DMV: passenger cars, trucks, motorcycles, recreational vehicles, trailers, and semitrailers.6South Carolina Legislature. a href=”https://www.scstatehouse.gov/code/t56c003.php#56-3-627″ target=”_blank” rel=”noopener”>South Carolina Code 56-3-627 – Infrastructure Maintenance Fee The definition of “motor vehicle” also reaches self-propelled wheeled vehicles that don’t run on rails, which pulls ATVs, utility task vehicles, golf carts, and legend race cars into the same fee structure.7South Carolina Department of Revenue. South Carolina Code 12-36-2110 – Maximum Tax Items
Other Costs at Titling and Registration
The 5% fee isn’t the only line item. Title and registration charges add up on top:
- Title fee: $15, or $35 for in-person expedited processing.
- Passenger car registration: $40 every two years, with modest discounts starting at age 64 and larger ones at 65 or with a qualifying disability.
- Motorcycle or moped registration: $10 biennially.
- Trailer registration: $10 for utility or camper trailers, $20 for trailers over 2,500 pounds empty weight, or $87 for a permanent trailer plate.
Dealer Closing Fees
South Carolina dealers may charge a closing fee, sometimes called a documentation or “doc” fee. The Department of Consumer Affairs automatically treats fees of $225 or less as reasonable, while anything higher is subject to a reasonableness review before the dealer can charge it.8South Carolina Department of Consumer Affairs. Notice of Closing Fee Addendum There is no hard statutory cap, so higher fees do appear at some dealerships. The amount should be disclosed before you sign.
Electric and Hybrid Road Use Fees
Electric and hybrid buyers owe an extra biennial road use fee that offsets the gas taxes those vehicles avoid:
- Fully electric, hydrogen, or other non-motor-fuel vehicles: $120 every two years.
- Plug-in hybrids and other dual-fuel vehicles: $60 every two years.
The DMV collects this fee at first titling and then at each biennial renewal.9South Carolina Legislature. South Carolina Code of Laws Title 56 Chapter 3 – Section 56-3-645
When and How to Pay
A dealer collects the Infrastructure Maintenance Fee at the time of sale and handles the DMV paperwork for you.1South Carolina Legislature. South Carolina Code 56-3-627 – Infrastructure Maintenance Fee For a private party purchase, the responsibility is yours. Bring a completed Title Application (SCDMV Form 400), the title signed over by the seller, and payment for the fee plus title and registration to a DMV branch.10South Carolina Department of Motor Vehicles. Titles
You have 45 days from the purchase date to complete titling and registration. Miss the window and penalties stack:11South Carolina Department of Motor Vehicles. SCDMV Form 400 – Title and Registration Application
- 46 to 60 days late: $10
- 61 to 75 days late: $25
- 76 to 135 days late: $50
- Over 135 days late: $75
Penalties are added to the regular fees, not substituted for them. The 45-day clock starts on the purchase date, or on the date you begin operating the vehicle in South Carolina if that comes first.
The Annual Vehicle Property Tax
The 5% fee is a one-time cost. South Carolina also charges an annual personal property tax on vehicles at the county level, and this often catches new residents off guard because most states don’t tax vehicles this way every year.
Individually owned vehicles are assessed at 6% of fair market value. Business-owned vehicles are assessed at 10.5%.12South Carolina Legislature. South Carolina Code of Laws Title 12 Chapter 43 – Section 12-43-220 The county then multiplies that assessed value by its local millage rate, which varies by county and school district. A personally owned $20,000 vehicle has an assessed value of $1,200, and the resulting annual tax typically falls somewhere between $200 and $500 depending on where you live.
Property tax is due by the end of the month your registration expires. If a dealer secured the plate at purchase, taxes are due 120 days after the sale. Missing the deadline brings penalties and blocks your registration renewal.