South Carolina Used Car Sales Tax (2026): the $500 IMF, Property Tax and Family Transfers

South Carolina doesn't charge regular sales tax on most used cars. You pay a one-time Infrastructure Maintenance Fee (IMF) instead, which is 5% of the price with a $500 cap, when the car is first titled or registered in your name. Then every year you pay county property tax on the car before you can register it. As of Oct 19, 2026, that's the deal for dealer and private sales alike, and family transfers between close relatives are excluded from the IMF.

The cap is the part people from other states don't expect. On a $30,000 truck the IMF is still $500, because 5% would be $1,500. On a $6,000 commuter it's $300. I read the IMF statute on the South Carolina Legislature's site, the Department of Revenue's 2017 information letter on the change, DOR's 2025 property tax manual chapter and SCDMV's fee and buying pages on Oct 19, 2026. SCDMV's site blocks automated requests, so I've cited those pages by name below.

What the IMF is and when it replaced sales tax

DOR's Information Letter #17-8 explains that the fee started July 1, 2017, under Code Section 56-3-627, and that the law added an exemption from state and local sales and use tax for anything subject to the IMF. So you don't pay both. SCDMV's buying page puts it simply: most vehicles owe IMF instead of sales tax, and SCDMV decides which one applies based on the type of vehicle. If you buy in South Carolina but will register the car in another state, the IMF doesn't apply and sales tax rules do.

Dealer vs private sale

The statute handles the two differently.

• From a dealer -- 5% of the gross proceeds or sales price, capped at $500. If the dealer has a South Carolina retail license or offers to title the car, the dealer collects it.
• From a private seller -- 5% of fair market value, capped at $500, paid to SCDMV. The law defines fair market value as the total purchase price less any trade-in, or the value in a national used-car guide the department adopts, less any trade-in.

When the fee is based on your purchase price, the statute says SCDMV will require a bill of sale and your signature subject to the perjury laws. Writing a fake low price on a bill of sale is a bad idea for that reason alone. And honestly, with a $500 cap, it barely saves you anything once the car costs more than $10,000.

A trade-in is excluded in a private-party deal under the statute. On a dealer deal, the IMF follows the sales tax definition of gross proceeds, so ask the dealer to show the trade on the buyer's order. Either way, the $500 cap means a trade-in only changes the fee on cheaper cars.

Family transfers and other exclusions

The private-sale side of the statute excludes cars transferred to immediate family, which it defines as spouse, parents, children, sisters, brothers, grandparents and grandchildren. It also excludes transfers to a legal heir, legatee or distributee, along with a few business and dealer resale cases. That list includes siblings, which some other states leave out, so don't assume another state's family rule works the same way here.

Moving in: the $250 version

If you first registered the car in another state and then bring it to South Carolina, the IMF is a flat $250, paid once per vehicle. Active-duty military, their spouses and dependents are exempt from that $250. SCDMV's moving page says a regular passenger car usually costs $305 to bring over, the $250 IMF plus a $15 title fee and a $40 registration fee, and that doesn't count county property tax. DOR's manual says new residents have 45 days to register.

The yearly county property tax

This is the bill that keeps coming. DOR's property tax manual says vehicles are taxed in advance and county property tax has to be paid before you register with SCDMV. Personal vehicles are assessed at 6% of their value, and value comes from nationally recognized guides. DOR's simplified example is a $20,000 car at a 6% assessment and a 0.289 county millage, for $346.80 in tax. Your county's millage will be different, so call the auditor's office.

To get the bill, you contact your county auditor with the VIN, pay the treasurer, and bring the paid receipt to SCDMV. On a private sale that's an extra stop most people forget about.

Deadlines and paperwork

SCDMV says you must register a newly bought vehicle within 45 days of purchase. Its fee page lists late registration penalties from $10 (46 to 60 days late) up to $75 (more than 135 days). For a private sale you need the title signed over with the buyer's name, odometer reading, price, sale date and both signatures, a Title Application (Form 400), the IMF, title fee and the paid property tax receipt. Our South Carolina private-sale title transfer guide covers the title steps.

Before any money changes hands, check the title on NMVTIS and run a history report. SCDMV itself tells buyers to check title history and open recalls first. If the title shows a brand, read our South Carolina salvage and rebuilt title rules. Our used car sales tax guide compares how other states do it.

We're a licensed CARFAX and AutoCheck reseller and aren't affiliated with CARFAX, AutoCheck or Experian. In mid October 2026 a guest report was about $5.50, a member report about $4.50 and both together about $6.75, against roughly $39.99 to $44.99 at retail. That can change, so confirm the price when you check out.

Sources

• S.C. Code Title 56, Chapter 3 (Section 56-3-627, Infrastructure maintenance fee)
• SC DOR Information Letter #17-8 (June 21, 2017)
• SC DOR: Individual Property Tax, SCTIED 2025 Chapter 5
• SCDMV: Fees; Buying or Selling a Car; Moving to SC (dmv.sc.gov, read Oct. 19, 2026)
• NMVTIS