South Carolina has no statewide preemption law for short-term rentals. That means every city and county sets its own rules. The state's role is limited to taxation — but it's an important one. Understanding the state accommodations tax structure helps you model the full tax stack before your client writes an offer.
| Rule | Detail |
|---|---|
| Statewide preemption | None. Local governments retain full authority to regulate, permit, or ban STRs. |
| State accommodations tax | 2% South Carolina state accommodations tax applies to short-term rental revenue (under 90 days). |
| Local accommodations tax | Typically 1.5% additional local accommodations tax in most SC jurisdictions. Additional local hospitality taxes may apply. |
| State-level permit | No statewide STR permit. Permit requirements are set entirely at the local level. |
| Tax remittance | Platforms (Airbnb, VRBO) collect and remit South Carolina state accommodations tax. Confirm platform-specific coverage before advising clients. |
Statewide preemption
None. Local governments retain full authority to regulate, permit, or ban STRs.
State accommodations tax
2% South Carolina state accommodations tax applies to short-term rental revenue (under 90 days).
Local accommodations tax
Typically 1.5% additional local accommodations tax in most SC jurisdictions. Additional local hospitality taxes may apply.
State-level permit
No statewide STR permit. Permit requirements are set entirely at the local level.
Tax remittance
Platforms (Airbnb, VRBO) collect and remit South Carolina state accommodations tax. Confirm platform-specific coverage before advising clients.
South Carolina's STR landscape is shaped by three distinct regulatory environments: Charleston, which has implemented one of the Southeast's most restrictive permitting regimes; Hilton Head, a resort-dominated market with moderate permit requirements; and Myrtle Beach, a highly tourism-dependent city that is generally STR-friendly.
Charleston has one of the most restrictive STR regimes in the Southeast. Non-owner-occupied permits (Type II) are subject to a moratorium or strict caps in residential zones. Historic commercial zones allow investment STRs, but residential neighborhoods are heavily restricted. If your client is underwriting a pure investment property in Charleston's residential areas, zoning is the first check before any pro forma work. See the full Charleston city page for permit types, taxes, and underwriting implications.
Hilton Head Island requires a Business License for all STRs but has no owner-occupancy requirement, meaning investment properties are allowed. However, the Town of Hilton Head is resort-dominated, and many properties sit in gated communities with their own STR policies and rental programs. HOA restrictions are often the binding constraint, not city rules. Investors must carefully review deed restrictions and community rules before underwriting.
Myrtle Beach is one of the most tourism-dependent cities in South Carolina and is generally STR-friendly. A Business License and STR registration are required, but no residential ban on non-owner-occupied properties exists. Investors in this market face operational and pricing risk more than regulatory risk.
For South Carolina deals, the state-level analysis is straightforward: budget 3.5% of gross nightly revenue for state and local accommodations taxes (2% state + 1.5% local), plus any city-specific taxes. Additional local hospitality taxes may apply. Confirm whether the platform collects and remits on the client's behalf. The regulatory complexity is entirely at the local level, which means your due diligence needs to drill into the specific city and zoning district, not just the state.
Sources
This is general information, not legal advice. Verify current rules with local authorities before advising a client.
Charleston
Highly restrictive market. Type II (investor) permits capped or frozen in residential zones. Full permit, tax, and underwriting guide.
Hilton Head
Resort-dominated. No owner-occupancy requirement but HOA rules often control STR eligibility. Business license and tax guide.
Myrtle Beach
STR-friendly tourism market. No residential ban. Business license and tax compliance guide.
The VaultSTR Pro Forma builds the full South Carolina tax stack into every deal analysis and flags local permit constraints by jurisdiction.
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Does South Carolina have a statewide STR preemption law?
No. South Carolina has not passed a preemption law limiting local governments' authority to regulate short-term rentals. Each city and county sets its own rules.
Does Airbnb collect South Carolina accommodations tax?
Yes, Airbnb and VRBO both collect and remit South Carolina's 2% state accommodations tax on behalf of hosts. However, local accommodations taxes and city-specific fees vary by jurisdiction. Confirm coverage in your client's specific city before advising them to self-remit.
Which South Carolina markets are best for STR investors?
Myrtle Beach offers minimal regulatory friction with high tourism demand. Hilton Head allows investment STRs but require careful HOA review. Charleston offers high nightly rates but has strict zoning controls on non-owner-occupied properties in residential areas.
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