Charleston-area local taxes
Charleston-Area Hospitality Tax: The 2% on Prepared Food and Drink
Most Charleston-area cities and towns charge a 2% local hospitality tax on prepared meals and beverages, on top of sales tax. It is not reported to the SCDOR: you file a separate monthly return, usually by the 20th, with the city, the town or Charleston County acting as its collector. A restaurant meal in the City of Charleston carries 9% sales tax plus 2% hospitality tax.
- State law caps a local hospitality tax at 2% of food and beverage charges (S.C. Code 6-1-720).
- Charleston, North Charleston, Mount Pleasant, Folly Beach, Sullivan's Island, James Island, Isle of Palms, Summerville and Goose Creek each charge 2%.
- Charleston County collects for North Charleston, Mount Pleasant, Sullivan's Island, James Island and Folly Beach; the others collect their own.
- Unincorporated Dorchester County charges 2%, and 1% inside towns that had no hospitality tax of their own before 2019.
- Returns are monthly and due by the 20th in every jurisdiction we checked; late penalties are steep.
Who this applies to
- Restaurants, bars, cafes, food trucks and caterers selling prepared food or drinks
- Grocery and convenience stores selling prepared food
- Hotels and event venues that sell food and beverages
- Special event and festival vendors
Who this may not apply to
- Sales of unprepared groceries, which are outside the hospitality tax
- Businesses outside the city or town limits of a municipality that levies it (check the county rule instead)
What the hospitality tax is
The Local Hospitality Tax Act (S.C. Code 6-1-700 to 6-1-770) lets a county or municipality tax sales of prepared meals and beverages sold in establishments, or sold in establishments licensed for on-premises consumption of alcoholic beverages, beer or wine. The rate cannot exceed 2%, and a county cannot charge more than 1% inside a municipality without the municipality's consent. The money must be kept in a separate fund and spent on tourism-related purposes.
The customer pays it, but the business is liable for it. The City of Charleston's ordinance requires the tax to be collected when the patron pays and held in trust for the city. If you forget to add it to the check, you still owe it out of your own revenue.
Rates and collectors by location
| Location | Rate | File and pay with |
|---|---|---|
| City of Charleston | 2% | City of Charleston Revenue Collections |
| City of North Charleston | 2% | Charleston County Revenue Collections |
| Town of Mount Pleasant | 2% | Charleston County Revenue Collections |
| City of Folly Beach | 2% | Charleston County Revenue Collections |
| Town of Sullivan's Island | 2% | Charleston County Revenue Collections |
| Town of James Island | 2% | Charleston County Revenue Collections |
| City of Isle of Palms | 2% | City of Isle of Palms |
| Town of Summerville | 2% | Town of Summerville |
| City of Goose Creek | 2% | City of Goose Creek |
| Unincorporated Dorchester County | 2% | Dorchester County |
| Dorchester County towns with no hospitality tax of their own before 1 January 2019 | 1% (county) | Dorchester County |
Summerville and North Charleston both had their own hospitality taxes before Dorchester County's took effect on 1 January 2019 (Summerville since August 2005 and North Charleston since September 2000, by their own accounts), so on the county's wording its 1% municipal rate does not apply to their Dorchester County parts.
What a meal actually costs in tax
Prepared food carries the full sales tax rate, and the hospitality tax is added on top. North Charleston's own breakdown puts a Charleston County restaurant purchase at 11%: 9% sales tax plus 2% hospitality tax. In the Dorchester County part of Summerville the sales tax is 7%, so the combined rate is 9%. Both sales tax rates come from SCDOR Form ST-575 (Rev. 2/5/26).
Filing, deadlines and penalties
- City of Charleston: monthly return on the City's form, due by the 20th for the previous month's sales; late payments carry a 25% penalty. Payment is online through the City's Customer Self-Service account.
- Mount Pleasant and the other towns Charleston County collects for: due monthly by the 20th to Charleston County, which Mount Pleasant calls its collection agent.
- Summerville: due to the Town by the 20th of each month, payable through the Town's self-service portal.
- Goose Creek: due by the 20th of the month after the period; monthly if your average fee exceeds $50 a month, quarterly between $25 and $50, annually below $25. Late payments add 5% of the unpaid amount per month.
- Sullivan's Island: the Town's ordinance sets a 25% penalty for late remittance.
Where small food businesses go wrong
- Filing sales tax with the SCDOR and assuming that covers everything. The hospitality tax is a separate local return.
- Selling at a festival in another town. Special event vendors need that town's business license and owe its hospitality tax; Summerville's special events guide requires every food vendor to hold a Town business license and remit hospitality tax to the Town.
- Using the mailing address. A business with a North Charleston or Summerville address may sit inside or outside the limits, and in one of three counties.
- Treating catering or takeout differently. The ordinances we reviewed cover prepared food whether eaten on site or taken out.
How we help
Haigler CPA Group sets up the monthly sales tax and hospitality tax calendar for new restaurants and food businesses, maps each location to its collector, and reconciles point-of-sale reports to what was filed. Where returns were missed, we work out what is owed and help you catch up.
Want this worked out for your situation?
The rules above are general. Bring your numbers to a free consultation, in person on James Island or by video, and we will tell you how they apply to you.
Bookkeeping Services — Clean books, reconciled monthly, ready for tax time.
Sources
- S.C. Code Title 6, Chapter 1 (Local Hospitality Tax Act, 6-1-700 et seq.)
- City of Charleston — Hospitality Tax
- Charleston County — Revenue Collections (hospitality collection list and ordinances)
- Town of Mount Pleasant — Business License Division
- City of North Charleston — Taxes
- Town of Summerville — Business Licenses (hospitality tax)
- City of Goose Creek — Hospitality Fees
- Dorchester County — Hospitality Tax
South Carolina publishes new guidance and local governments change their rates, so check the source pages for anything that has moved since the date above. The information on this site is general in nature and is not tax, legal, or accounting advice for your situation. Tax law changes and the right answer depends on facts we would need to review with you. Please speak with a qualified professional before acting on anything you read here.
Questions people ask about this
Is the hospitality tax the same as sales tax?
No. Sales tax is reported to the SCDOR on its return. The hospitality tax is a separate local tax of up to 2% on prepared food and beverages, filed monthly with the city, the town or the county that collects for it.
Who do I pay the Mount Pleasant hospitality tax to?
Charleston County Revenue Collections. The Town of Mount Pleasant says its 2% hospitality tax is due on the 20th of each month to Charleston County as its collection agent.
Does a food truck owe hospitality tax?
Yes, where it sells prepared food inside a jurisdiction that levies the tax. It is collected on the sale and filed with that jurisdiction, along with any business license or temporary use permit the town requires.
What is the penalty for paying the City of Charleston hospitality tax late?
The City adds a 25% penalty to hospitality taxes not remitted by the 20th of the month following the sales.
Keep reading
- Sales tax rates by townEvery municipality and unincorporated area in Charleston and Berkeley counties has a 9% combined sales tax rate: the 6% state rate plus 3% in local taxes. Dorchester County is 7%, which matters because Summerville and North Charleston both extend into it. The rate that applies is the one where the sale is delivered, not where your business is based.
- Local business licenses by townIn the Charleston area you need a business license from each city, town or county where you do business, not just where your office is. Charleston County Revenue Collections licenses unincorporated Charleston County and seven municipalities, including North Charleston and James Island. The City of Charleston, Mount Pleasant, Summerville, Isle of Palms, Kiawah Island and Hanahan run their own offices. Every one renews by April 30.
- South Carolina Sales Tax for Small BusinessSales tax is the obligation small businesses most often discover late, because nothing about it is triggered by profit. It is triggered by making a sale, and it starts on the first one.
- New business tax setupWe take a new South Carolina business through its tax setup in the right order: classification, EIN, state accounts, local licenses, books and the first year's payments.
- Accommodations tax by townA short-term rental or hotel room in the Charleston area carries two layers of tax: 10% reported to the SCDOR in Charleston and Berkeley counties (8% in Dorchester County), plus local accommodations taxes reported to the county or town. In Charleston County, the county's 2% fee applies everywhere, and eight cities and towns add 1% or 2% on top, all collected by Charleston County Revenue Collections. A City of Charleston property in Charleston County totals 14%.
- South Carolina tax guideHow South Carolina taxes income, businesses and property, and what the Charleston area adds on top, with the state or local source beside every rule.
Talk to a tax expert
Tell us what you are dealing with and we will tell you how we would handle it.