Maximum Tax (Max Tax) | South Carolina Department of Revenue

Some items are subject to a Maximum Sales & Use Tax, commonly known as Max Tax, instead of the usual retail Sales Tax. Max Tax items are taxed at 5% or a maximum of $500 per item.

Local sales taxes do not apply to the sale or lease of Max Tax items. This tax is due on boats, airplanes, self-propelled light construction equipment with compatible attachments limited to a maximum of 160 net engine horsepower, and other items not subject to the Infrastructure Maintenance Fee. Retailers of items subject to Max Tax must collect and pay the tax and file Max Tax returns.

Need help?

Phone: 1-844-898-8542
Email: SalesTax@dor.sc.gov

The following items are subject to Max Tax:

Aircraft (including unassembled aircraft which is to be assembled by the purchaser, but not items to be added to the unassembled aircraft)
Boat and watercraft motors
Horse Trailers
Motorcycles
Motor vehicles (including ATVs (all-terrain vehicles), dirt bikes, golf carts, legend race cars, and UTVs (utility task vehicles))
Recreational vehicles (including tent campers, travel trailers, park models, park trailers, motor homes, and fifth wheels)
Self-propelled light construction equipment with compatible attachments (limited to a maximum of one hundred sixty net engine horsepower)
Trailers or semitrailers (pulled by a truck tractor)

Learn more about Maximum Tax in the SC Code Section 12-36-2110.

Infrastructure Maintenance Fee (IMF): Items subject to an Infrastructure Maintenance Fee are exempt from Max Tax. The Infrastructure Maintenance Fee is reported and paid to the South Carolina Department of Motor Vehicles (SCDMV). Generally, the fee is due on motor vehicles, motorcycles, trailers, and semitrailers pulled by a truck tractor, or other items that must be registered under SC Code of Law Chapter 3 of Title 56.
Items subject to Max Tax capped at $300: A Max Tax of $300 applies to the sale of musical instruments and office equipment sold to religious organizations. Sellers must submit an affidavit (ST-382) for capped items sold to religious organizations.

A Max Tax of $300 also applies to certain energy efficient manufactured homes.
Mobile homes: The first 35% of the selling price of a new or used mobile home is exempt from Sales & Use Tax. After allowing for the exemption, Max Tax imposed on the sale is $300 plus 2% of the remaining sales price exceeding $6,000. The 2% is exempt if certain energy efficiency levels are met in the mobile home.

How to file and pay

File and pay on MyDORWAY

Max Tax must be filed and paid electronically on MyDORWAY:

You will enter your total sales for the filing period if those items were subject to the Infrastructure Maintenance Fee (IMF).
Filers must enter the sales price of each Max Tax sale (not subject to the IMF) item-by-item so that MyDORWAY can calculate all taxes due. This includes wholesale vehicle sales, out of state vehicle sales, ATVs, Golf Carts, etc.
You will need the following information for the filing period:
- Your Retail License Number, Federal Employer ID Number (FEIN), and South Carolina ID (SID)
- Total sales reported to the SC Department of Motor Vehicles (SCDMV)
- The sales price and type of each item sold that is subject to the Max Tax/IMF but was not paid to the SCDMV
- Gross proceeds of retail sales, rentals, and withdrawals for own use
- Out-of-state purchases subject to tax
- Allowable deductions
- Local tax information
  - All counties and municipalities that your business delivers to
  - The county and municipality where your business is located

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Due dates

Monthly filing schedule

Period Ended	Due Date
January 31	February 20
February 28	March 20
March 31	April 20
April 30	May 20
May 31	June 20
June 30	July 20
July 31	August 20
August 31	September 20
September 30	October 20
October 31	November 20
November 30	December 20
December 31	January 20

Quarterly filing schedule*

Period Ended	Due Date
March 31	April 20
June 30	July 20
September 30	October 20
December 31	January 20

Annual filing schedule*

Period Covered	Due Date
December 31	January 20

*You must request approval from the SCDOR to file quarterly or annually, and you must submit the request in writing.

Watch our tutorial for help filing a return on MyDORWAY

Frequently asked questions

Yes. Beginning with the November 2023 filing period, Max Tax filers are required to file returns and make payments electronically using MyDORWAY, our free online tax portal.

This change does not affect the filing frequency for Max Tax filers.

No. Beginning with the November 2023 filing period, Max Tax filers must report their Max Tax sales item-by-item, instead of as one total amount.

After you enter the purchase price of each Max Tax item sold, MyDORWAY will calculate all taxes due, including the Infrastructure Maintenance Fee (IMF). If you made any payments to the South Carolina Department of Motor Vehicles (SCDMV), you will enter the total sales you reported to the SCDMV.

Yes. Due to the court's decision in Jack’s Custom Cycles, Inc. vs. SCDOR, ATVs, UTVs, golf carts, dirt bikes, and legend race cars are now subject to the Max Tax rate of 5%, capped at $500.

If you aren't already filing Max Tax returns (ST-455), please contact the SCDOR by sending us a web message while logged in to MyDORWAY. Include a brief explanation of the items you sell in your web message.

You can also email us at SalesTax@dor.sc.gov and include your business name, Retail License number or FEIN, and a brief explanation of the items you sell. We will review and change your registration so that you can report your sales subject to Max Tax.

Yes.

No, you will report your retail and Max Tax items on one return using the SCDOR’s free online tax portal, MyDORWAY. You can learn more about MyDORWAY, including tutorials on how to sign up and file, at dor.sc.gov/MyDORWAY.

No, you will report only your Max Tax items at 5% and all other retail items at the 6% Sales Tax rate plus any local taxes, but you file both on the same return.

Need more help?

Our FREE virtual Sales & Use Tax Seminars and Sales Tax Workshops are open to the public. Participate online and ask SCDOR's subject matter experts questions from your own home or office. See class dates and register now >

See chapter 10 of our Sales & Use Tax Manual for more information on Max Tax.

Some items are subject to a Maximum Sales & Use Tax, commonly known as Max Tax, instead of the usual retail Sales Tax. Max Tax items are taxed at 5% or a maximum of $500 per item.

Need help?

Exemptions and the Infrastructure Maintenance Fee

How to file and pay

File and pay on ​​MyDORWAY​

Due dates

Watch our tutorial for help filing a return on MyDORWAY

Frequently asked questions

Am I required to file Max Tax returns electronically?

On my Max Tax return, can I report all sales as one total amount?

Do I need to report sales of golf carts, ATVs, UTV, dirt bikes, and legend race cars on my Max Tax return?

What do I need to do if I sell items that are subject to the​ Max Tax rate?

If I only sell Max Tax items that are subject to the Infrastructure Maintenance Fee (IMF), do I need to notify the SCDOR and report the amount of sales reported to the SCDMV?

Do I need to file two different returns for retail and Max Tax items?

If I file Max Tax returns, do I report all sales at the 5% rate?

​​Nee​​d more help​​​?

File and pay on MyDORWAY

Need more help?