South Carolina Sales Tax on Software and Digital Products South Carolina: Sales Tax Handbook

South Carolina:

Are Software and Digital Products subject to sales tax?

While South Carolina's sales tax generally applies to most transactions, certain items have special treatment in many states when it comes to sales taxes. This page describes the taxability of software and digital products in South Carolina, including canned software - delivered on tangible media, canned software - downloaded, custom software - delivered on tangible media, custom software - downloaded, customization of canned software and digital products. To learn more, see a full list of taxable and tax-exempt items in South Carolina.


Canned Software - Delivered on Tangible Media
TAXABLE
In the state of South Carolina, any broadcasting software which has been sold to a radio station, television station, or cable television system is considered to be exempt.

Canned Software - Downloaded
EXEMPT
In the state of South Carolina, it is considered to be exempt so long as the transaction does not extend to include the transfer of any tangible personal property.

Custom Software - Delivered on Tangible Media
TAXABLE
In the state of South Carolina, most broadcasting software which is sold to any radio station, television station, or cable television system is considered to be exempt.

Custom Software - Downloaded
EXEMPT
In the state of South Carolina, it is considered to be exempt so long as the transaction does not extend to include the transfer of any sort of tangible personal property.

Customization of Canned Software
TAXABLE
In the state of South Carolina, any modifications that are made to canned software that are prepared exclusively for a specific customer are considered to be taxable custom programs, not exempt.

Digital Products
EXEMPT
Sales of digital products are exempt from the sales tax in South Carolina.



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