South Carolina Short-Term Rental Laws by City (2026)
Short-term rental rules in South Carolina are set city by city — a property that is legal to rent nightly in one town can be prohibited a few miles away. The table below covers 5 South Carolina cities (5 human-verified against official sources), with each city's legal status, permit cost, and last-verified date.
Statewide short-term rental rules in South Carolina
South Carolina imposes no statewide short-term rental permit and does not preempt local regulation — cities and counties may license, cap, or even ban STRs, and bills to change that (H.3861 preemption, S.442 statewide standards with a local-ban authorization) both died when the legislature adjourned in May 2026. The state's requirements are tax-driven: stays of fewer than 90 continuous days are subject to a 7% state sales tax on accommodations, which Airbnb/Vrbo collect and remit for platform bookings; hosts who take direct bookings must obtain a one-time $50 Accommodations Tax License (retail license) from the SC Department of Revenue. Separately, owners who rent out their legal residence more than 72 days in a calendar year lose the 4% owner-occupied property tax assessment ratio. City and county rules apply on top of state law — check your local market's page.
Full statewide rules: permits, taxes & enforcement
South Carolina imposes no statewide short-term rental permit and does not preempt local regulation — cities and counties may license, cap, or even ban STRs, and bills to change that (H.3861 preemption, S.442 statewide standards with a local-ban authorization) both died when the legislature adjourned in May 2026. The state's requirements are tax-driven: stays of fewer than 90 continuous days are subject to a 7% state sales tax on accommodations, which Airbnb/Vrbo collect and remit for platform bookings; hosts who take direct bookings must obtain a one-time $50 Accommodations Tax License (retail license) from the SC Department of Revenue. Separately, owners who rent out their legal residence more than 72 days in a calendar year lose the 4% owner-occupied property tax assessment ratio. City and county rules apply on top of state law — check your local market's page.
Reviewed by the STR Rule Watch research team against 10 official sources. How we verify data
South Carolina statewide STR rules at a glance
| Legal status | Allowed, no permit required |
|---|---|
| Permit required | No |
| Total occupancy taxes | ~13% of gross revenue |
| Insurance | None. No statewide STR insurance mandate is in effect. S.442 (2025-2026), which would have required a $1 million-per-occurrence commercial general liability policy statewide, died at the May 2026 adjournment — some industry blogs incorrectly describe that pending bill's insurance requirement as current law. |
| Enforcement | State-level enforcement is tax enforcement by the SC Department of Revenue (Accommodations Tax License, 7% accommodations tax returns via MyDORWAY). |
State law & local authority
No state preemption: South Carolina leaves STR zoning, permitting, caps, and outright bans entirely to municipalities and counties, which regulate under their general home-rule zoning and business-license powers (e.g., Charleston, Mount Pleasant, Isle of Palms, Folly Beach). Competing 2025-2026 bills would have settled the question in opposite directions — H.3861 would have added S.C. Code § 6-1-195 providing that a local government 'may not enact or enforce an ordinance, resolution, or regulation that prohibits the rental of a residential dwelling to a short-term guest' (with loss of state aid as the penalty), while S.442 would have expressly authorized local governments to regulate and even prohibit STRs while adding statewide standards. Both died at the May 2026 sine die adjournment, preserving full local control. A similar preemption bill (H.3253) also died in the 2023-2024 session.
State-level taxes
| Tax | Rate | Who collects |
|---|---|---|
| State Sales Tax on AccommodationsS.C. Code § 12-36-920(A): 7% (described by SCDOR as 5% sales tax + 2% accommodations tax) on gross proceeds from rooms/lodgings/sleeping accommodations furnished to transients. Stays of 90+ continuous days to the same person are not taxable. Marketplace platforms (Airbnb, Vrbo) and other online travel companies that reserve rooms and accept payment are the retailer responsible for collecting and remitting; hosts taking direct bookings collect and remit themselves under a $50 Accommodations Tax License. Exemptions: owner's place of abode with fewer than six sleeping rooms rented directly by the owner/operator while residing on premises (does not apply when rented via an agent, listing service, or internet booking company), and residences actually rented fewer than 15 days per year where income is excluded under IRC § 280A(g). Local governments may add a local accommodations tax (cumulative county+municipal cap of 3%) plus local option sales taxes — covered on city pages. | 7% | varies |
| State Sales Tax on Additional Guest Charges6% total state rate on separately stated 'additional guest charges' at places furnishing accommodations to transients — the 5% statutory rate of S.C. Code § 12-36-920(B) plus the 1% additional sales tax of § 12-36-1110, which exempts only § 12-36-920(A) accommodations, not (B) charges. SCDOR's Sales & Use Tax Manual (Ch. 11, Accommodations) states: 'A 6% sales tax is imposed upon additional guest charges.' Since Act 172 of 2014, 'additional guest charge' is limited to five enumerated categories: room service, laundering and dry-cleaning services, in-room movies, telephone service, and rentals of meeting rooms; other separately stated optional charges (e.g., linen rentals) are taxed under the general 6% sales tax rather than as additional guest charges. | 6% | varies |
Enforcement & penalties
State-level enforcement is tax enforcement by the SC Department of Revenue (Accommodations Tax License, 7% accommodations tax returns via MyDORWAY). Two other statewide regimes affect STR hosts: (1) Property tax — under S.C. Code § 12-43-220(c), a legal residence keeps its 4% owner-occupied assessment ratio only if it 'is not rented for more than seventy-two days in a calendar year'; renting beyond 72 days shifts the property to the 6% ratio, and assessors may demand federal/state returns including Schedule E to verify. (2) The South Carolina Vacation Rental Act (S.C. Code § 27-50-210 et seq.) governs rentals of residential property 'for a period of fewer than ninety days': it requires written vacation rental agreements, requires rental management companies to hold tenant monies in trust accounts, and makes buyers of a sold property honor vacation-rental bookings that begin within 90 days of the deed being recorded. There is no statewide STR-specific safety (smoke/CO), platform data-sharing, or unit-cap statute.
No STR-specific state penalty scheme. Operating without the required Accommodations Tax License or failing to remit the 7% accommodations tax exposes hosts to standard SCDOR tax penalties and interest. Renting a legal residence more than 72 days in a calendar year forfeits the 4% owner-occupied assessment ratio (property reassessed at 6%).
Statewide sources
- S.C. Code § 12-36-920 — Tax on accommodations for transients (SC Legislature, Code Title 12 Ch. 36)retrieved July 11, 2026
- SC Department of Revenue — Accommodations (Sales & Use Tax Index)retrieved July 11, 2026
- SC Department of Revenue — Licensing (Retail License / Accommodations Tax License, $50 fee)retrieved July 11, 2026
- SC Legislature — H.3861 (2025-2026): Short-term rentals (proposed local-ban preemption, § 6-1-195) — died in committeeretrieved July 11, 2026
- SC Legislature — S.442 (2025-2026): Short Term Rentals (proposed statewide standards + express local authority) — died in Senate Judiciaryretrieved July 11, 2026
- SC Legislature — H.3876 (2025-2026): Accommodations (merchant-of-record tax collection) — passed House, died in Senateretrieved July 11, 2026
- S.C. Code Title 27, Ch. 50 — South Carolina Vacation Rental Act (§ 27-50-210 et seq.)retrieved July 11, 2026
- S.C. Code § 12-43-220 — assessment ratios incl. 72-day rental limit for 4% legal residence ratio (SC Legislature, Code Title 12 Ch. 43)retrieved July 11, 2026
- SCDOR Sales & Use Tax Manual, Chapter 11 — Accommodations (6% additional guest charges; 280A(g) under-15-day and place-of-abode exemptions; OTC collection)retrieved July 12, 2026
- CAI Advocacy — 2026 South Carolina End of Legislative Session Report (H.3861 and S.442 both died)retrieved July 11, 2026
| City | Status | Permit fee | Last verified |
|---|---|---|---|
| Charleston | Primary residence only | $345 | July 10, 2026 |
| Columbia | Restricted | $250 | July 21, 2026 |
| Hilton Head Island | Permit required | $150 | July 12, 2026 |
| Horry County | Permit required | — | July 12, 2026 |
| Myrtle Beach | Restricted | — | July 10, 2026 |
Don't see your city? Browse all covered cities or request coverage with a Pro account.
This page is informational only and is not legal, tax, or financial advice. Regulations change frequently — verify current requirements with each jurisdiction before operating. HOA and condo rules may prohibit short-term rentals regardless of city law.