Overview
The IMF has its own rulebook that looks nothing like a sales tax. Dealers subtract your trade-in before applying the 5%. Private sales are based on fair market value, which the SCDMV can challenge if your bill of sale price looks artificially low. Gifts between spouses, parents, children, siblings, and grandparents/grandchildren are exempt entirely. And residents moving a car they already own into South Carolina skip the 5% math and pay a flat $250 instead.
01 - Official fees
South Carolina car sales tax fees at a glance
| Fee | Amount | Notes |
|---|---|---|
| Dealer purchase or lease | 5% × (price − trade-in) | capped at $500 |
| Private-party purchase | 5% × fair market value | capped at $500 |
| New resident, vehicle already titled elsewhere | $250 flat | |
| Gift - spouse, parent/child, sibling, grandparent/grandchild | $0 | Form 400 gift box + TI-021A affidavit |
| Inherited vehicle | $0 |
Figures verified June 2026 against official sources (listed below). Always confirm the final amount with your county treasurer/auditor for property tax, then the SCDMV for title and registration - counties can add small local fees.
03 - Same state, other costs
More South Carolina vehicle costs
04 - Common questions
South Carolina car sales tax FAQ
What is South Carolina's car sales tax rate?
There isn't one. South Carolina replaced vehicle sales tax with the Infrastructure Maintenance Fee in July 2017 - 5% of the price or fair market value, capped at $500 regardless of how much the vehicle costs.
How is the IMF different from a sales tax, in practice?
The cap is the whole story: a normal sales tax scales with price forever, but the IMF stops growing at $10,000 of price (5% × $10,000 = $500) and never increases past that no matter what you paid. It only behaves like a percentage tax on cheaper vehicles.
Do I owe the IMF again if I already paid sales tax on this car in another state?
If you can document that legally-owed sales tax was already paid on the specific transaction, South Carolina generally doesn't make you pay the IMF a second time on that purchase - bring the out-of-state bill of sale and tax receipt to the SCDMV.
Is gifting a car to my adult child really tax-free in South Carolina?
Yes, for immediate family - spouse, parent, child, sibling, grandparent, or grandchild. Mark the 'bonafide gift' box on Form 400 and, if asked, submit the TI-021A Affidavit of Immediate Family Relationship. Gifts to cousins, in-laws, or friends don't qualify and get taxed as a normal private sale instead.
Can the SCDMV challenge the price I report on a private sale?
Yes. The IMF is based on fair market value, not just whatever number is on your bill of sale, and the SCDMV can compare a suspiciously low price against standard vehicle valuation guides before accepting it.
Is there any vehicle purchase in South Carolina that's fully exempt from the IMF?
Qualifying immediate-family gifts, inherited vehicles, and transfers where sales tax was already legally paid elsewhere. Everything else - dealer or private, new or 20 years old - owes the 5%/$500 IMF.
05 - Receipts
Official sources
Every number on this page comes from these documents - check them yourself.