South Carolina charges 5% sales tax on most items, with additional local taxes that vary by locality. Did you know that vehicles are exempt from sales tax when purchased by South Carolina residents? Vehicles are instead subject to infrastructure maintenance fees (IMF).

The sticker price is the cost you’re zeroed in on when shopping for a car—how can you negotiate or find enough deals to get it down? Don’t forget about the other costs that come with purchasing a car, though! A big added expense in the state of South Carolina is the IMF.

You may not have to pay sales tax, but you will have to pay the IMF to the South Carolina DMV. But who has to pay the IMF and who is exempt?

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How much is the car sales tax rate in South Carolina?

Residents of South Carolina must pay an infrastructure maintenance fee (IMF) on their vehicle purchases. This fee is 5% of the purchase price with a maximum fee of $500. Vehicles that are $9,999 or less will pay 5% of the purchase price, while vehicles $10,000 and over will pay $500.

How are car trade-ins taxed in South Carolina?

A popular option when purchasing a new car is to first trade in your old vehicle for a credit towards your new purchase. Does this help with the IMF though?

Because the IMF is calculated on the purchase price, the value of your trade-in does not count towards the IMF.

Let’s say you are trading in your old

Toyota Camry

for a used

Hyundai Santa Fe

. You get a $1,500 credit for your Camry towards the sticker price of $11,230 for the Santa Fe. That brings your purchase price down to $9,370.

Because you brought the price below $10,000, you will now pay 5% of the cost to satisfy the IMF. You owe $486.50 for the IMF. Without the trade-in credit, you would owe $500.

Keep in mind that the IMF is calculated before dealer rebates and incentives. Your IMF will exclude those in the calculation.

The exception to this is if you’re buying your vehicle from a private party. Private party sales have to pay 5% of the fair market value, regardless of the sale price. However, the IMF still won’t exceed $500.

MORE: How to decide between market value or agreed value

How to calculate sales tax on a car in South Carolina

It’s easy to calculate the IMF on a car that is for sale for $10,000 or more—it’s $500! For cars that are being sold for less than that amount, multiply the sale price by 0.05 to find the amount due for the IMF.

For example, a car being sold for $6,450 will have an IMF of $322.50 ($6,450 x 0.05 = $322.50).

Key Takeaway Vehicles worth less than $10,000 pay 5% of the sale price to the IMF, but vehicles worth $10,000 or more pay $500.

MORE:

Car loan in South Carolina 2022

Exemptions from South Carolina sales tax

Not everyone has to pay the IMF in South Carolina. Sometimes a buyer will need to pay the South Carolina sales tax of 5% plus any local taxes. Instances like this include:

Nonresidents whose state will apply a credit for the tax paid in South Carolina

Vehicles used for short-term rentals

There are some exceptions to both the IMF and sales tax being owed:

If the vehicle was purchased by a nonresident and is being delivered by you or a common carrier outside South Carolina

If the vehicle is purchased by a member of the military who is stationed in South Carolina

Nonresidents whose state will not apply a credit for the tax paid in South Carolina

MORE: How to deduct a car accident from your taxes

How to estimate South Carolina sales tax, title, and registration fees

It’s important to get informed ahead of time as to what costs you can expect when buying a vehicle. We’ve gone over the IMF, but you’ll also have to pay certificate of title,

vehicle registration

, and documentation fees.

This is how your costs can break down:

Cost	Average cost
IMF	5% not to exceed $500
Registration fee	$40 for gas-powered vehicles $60 to $120 for hybrid and electric
Title fee	$15
Plate transfer	$0
Documentation fee	Max $250

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You can get details on these fees and others on

South Carolina’s DMV website

MORE: Is car insurance tax deductible?

How to find affordable car insurance in South Carolina

Wow, there’s so much to keep in mind when purchasing a car! There’s one more thing though: great

car insurance

. This part is tricky because you want great coverage at an affordable price—that’s where

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