South Carolina’s combination of coastal resorts, historic cities, and scenic inland areas draws visitors throughout the year. From the charm of Charleston to the beaches of Myrtle Beach, the Palmetto State provides plenty of opportunities for short-term rentals on platforms like Airbnb and Vrbo.
However, South Carolina does not impose a single, comprehensive law for short-term rentals. Instead, property owners must manage state-level tax obligations and adhere to a patchwork of local ordinances that vary by municipality or county. This guide outlines the primary considerations for anyone looking to operate a short-term rental in South Carolina, covering licensing, lodging taxes, and city-specific regulations.
South Carolina’s Definition of a Short-Term Rental
South Carolina does not adopt one universal definition for short-term rentals. Many local governments consider any stay under 30 days as transient lodging, but some municipalities along the coast or in popular tourist spots may set different thresholds or add special rules. Owners should check local zoning or hospitality ordinances to confirm if short-term rentals need separate classification compared to long-term housing, as this typically determines which taxes or permits apply.
Starting a Short-Term Rental Business in South Carolina
To launch a short-term rental in South Carolina, property owners generally address two areas of compliance: state-level tax regulations and local ordinances. At the state level, owners may need to collect and remit accommodations taxes, especially if their platform does not handle these automatically. If you intend to form a legal business entity (e.g., an LLC), register it with the South Carolina Secretary of State.
Local rules can be more complex in highly visited areas, such as coastal towns or historical districts. Some municipalities enforce short-term rental permits, occupancy limits, and noise ordinances. Homeowners association (HOA) bylaws might also restrict rentals under a set number of days. Checking municipal websites and any relevant HOA documents for official guidance is essential to avoid fines or forced delisting.
Short-Term Rental Licensing Requirement in South Carolina
South Carolina does not issue a statewide short-term rental license. Instead, local governments in popular tourist destinations may have permitting systems. Areas like Charleston or Hilton Head often require:
- Annual or biannual short-term rental permits
- Safety and code compliance checks (e.g., for smoke detectors, fire extinguishers, or adequate parking)
- Limits on the number of nights per year a property can be rented if it is non-owner-occupied
Hosts who ignore these local procedures risk receiving citations, penalty fees, or forced closure of their listing. Because local authorities can update ordinances in response to neighborhood concerns or housing availability, owners should follow city council or planning board announcements to stay current.
South Carolina Short-Term Rental Taxes
Short-term rental hosts in South Carolina typically handle multiple taxes:
- State Accommodations Tax: This tax is generally 2% on short-term lodging charges.
- State Sales Tax: Currently 6%, applied to short-term rentals unless the platform remits it for you.
- Local Hospitality or Accommodations Taxes: Cities or counties often add their own hospitality or accommodations taxes, which can raise the combined rate above 10%.
If these taxes are not automatically collected by Airbnb, Vrbo, or another booking service, the property owner must register with the South Carolina Department of Revenue and file returns, typically monthly or quarterly based on revenue. Proper documentation of nightly rates, cleaning fees, and occupancy ensures accurate tax submission.
Vacation Rental Tax Deductions
Federal tax guidelines allow short-term rental hosts in South Carolina who rent out a property for more than 14 days annually to deduct certain expenses, including mortgage interest, property taxes, utility costs, and depreciation for both the structure and furnishings. Owners occupying the property for part of the year must separate rental use days from personal use days to calculate valid deductions properly. Consulting a tax professional can help optimize these deductions while staying in full compliance with IRS regulations.
Short-Term Rental Regulations by Major Locations in South Carolina
Charleston
Charleston enforces some of the state’s strictest short-term rental regulations to preserve the city’s historic character and manage tourism. Hosts commonly need a permit from the city’s Department of Livability and Tourism, and restrictions may differ by zone—some neighborhoods allow only owner-occupied rentals, while others cap the number of rentals permitted per block. Charleston collects an accommodations tax and a local hospitality tax, which can bring the total tax rate on bookings above 10%. Noncompliance can lead to steep fines and forced listing removal.
Myrtle Beach
A major beach destination, Myrtle Beach generally allows short-term rentals but enforces local rules on noise, parking, and maximum occupancy in vacation condos or homes. Operators must collect the state accommodations tax, the state sales tax, and any local accommodations taxes that fund beach maintenance and tourism promotion. HOAs in resort complexes may impose extra fees or constraints on short-term rentals, so hosts should confirm these details before listing.
Hilton Head Island
Hilton Head relies heavily on tourism, making short-term rentals a major contributor to the local economy. The town often requires a business license or a short-term rental permit, and certain gated communities have their own distinct codes. Occupancy caps or weekly minimums may apply in some neighborhoods. Accommodations and hospitality taxes usually add to the overall rate, which can exceed 10% on nightly stays. Officials occasionally review rental policies to mitigate parking or noise complaints during peak season.
Greenville
Greenville’s growth as a cultural and business hub has led to increased demand for short-term rentals near its downtown. The city does not maintain a total ban but may require business licensing if income surpasses thresholds. Collecting the combined state and local taxes remains mandatory, unless a platform does it on the host’s behalf. Zoning near the city center might restrict rentals in certain residential areas or limit how many nights per year an owner can rent a property without an owner-present scenario.
Columbia
As the state capital and home to the University of South Carolina, Columbia sees short-term rental traffic tied to legislative sessions, college events, and conferences. While no standalone short-term rental ordinance exists, city-level business license rules and property codes still apply. Hosts must also ensure they handle the state’s accommodations tax and any local hospitality add-ons. Neighborhoods near campus might enact additional parking or nuisance regulations that short-term operators must follow to avoid fines.
Takeaway
With coastal hotspots, thriving cities, and scenic inland areas, South Carolina presents a robust market for Airbnb-style accommodations. However, the state’s decentralized regulatory approach requires short-term rental hosts to check both state-level tax obligations and local permit or zoning rules. Collecting and remitting the accommodations tax, plus sales tax and any local hospitality charges, is crucial unless the platform fully manages it. Meanwhile, acquiring local permits—where mandatory—and adhering to occupancy or noise standards is equally important.
Because municipalities periodically revise ordinances in response to community feedback or shifting tourism dynamics, short-term rental operators should follow city government channels and official announcements. By staying current on policies, correctly reporting taxes, and upholding any neighborhood regulations or safety codes, hosts in South Carolina can offer high-quality guest stays while running a legitimate and profitable rental business in the Palmetto State.
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