Which state has the lower sales tax nexus threshold, South Carolina or Tennessee?

Both South Carolina and Tennessee publish the same economic nexus dollar threshold of $100,000, so a remote seller would reach each state's published threshold at the same level of in-state sales. These are the thresholds published by each state's tax authority as of 2026-06-08; confirm against the official source before registering.

Do both South Carolina and Tennessee have marketplace facilitator laws?

Yes. Both South Carolina and Tennessee have marketplace facilitator laws, so marketplaces such as Amazon, Etsy, and eBay collect and remit sales tax on the sales they facilitate in both states. Direct-to-consumer sales you make outside a marketplace remain your own responsibility once you cross each state's threshold. Verified 2026-06-08.

Which has the lower sales tax rate, South Carolina or Tennessee?

South Carolina has the lower combined state and local sales tax rate at 7.49%, compared with 9.61% in Tennessee. These are the statewide base rate plus the average local rate; the exact rate depends on the customer's delivery address. As of 2026-06-08.

Do I need to register for sales tax in both South Carolina and Tennessee?

It depends on where you cross each state's economic nexus threshold (or have physical presence there). South Carolina's published threshold is $100,000, and Tennessee's is $100,000. You generally register in a state only once you cross its threshold, so you may have an obligation in one, both, or neither. Run the nexus calculator with your actual sales and confirm with each state's official source. Thresholds as of 2026-06-08.

When did economic nexus take effect in South Carolina and Tennessee?

South Carolina's economic nexus rule took effect on 2018-11-01, and Tennessee's took effect on 2020-10-01. Both stem from the 2018 South Dakota v. Wayfair Supreme Court decision, which let states require remote sellers to collect once an economic threshold is met.

South Carolina vs Tennessee Sales Tax Nexus — Comparison 2026

Updated 2026-06-08

Compare economic nexus thresholds, state and local rates, and filing rules in South Carolina and Tennessee.

Metric	South Carolina	Tennessee
Economic nexus threshold	$100,000	$100,000
Transaction threshold	None	None
State rate	6.00%	7.00%
Avg. local rate	1.49%	2.61%
Combined state + local	7.49%	9.61%
Marketplace facilitator	Yes	Yes
Effective since	2018-11-01	2020-10-01

Which state is easier for sellers?

For low-revenue sellers: nexus triggers first in both states because of its threshold. If you cross that first, you register there first.

On rate: South Carolina is friendlier for customers with a combined state + local rate of 7.49% vs 9.61%.

Neither state has a transaction-count trigger — only the dollar threshold matters.

South Carolina — nexus note

South Carolina sales tax nexus and economic nexus threshold: a remote seller has economic nexus when gross revenue exceeds $100,000 in the previous or current calendar year from sales of tangible personal property, products transferred electronically, or services delivered into South Carolina. South Carolina uses a sales-only threshold -- no transaction-count test. Remote sellers with economic nexus must obtain a Retail License and remit South Carolina Sales and Use Tax beginning the first day of the second calendar month after economic nexus is established; licensed remote sellers collect applicable state and local taxes on taxable South Carolina sales. SCDOR marketplace guidance treats marketplace facilitators as retailers responsible for state and local sales/use tax on products sold via the marketplace, and remote marketplace facilitators use the same $100,000 economic nexus standard, counting tangible personal property, products transferred electronically, and services delivered into South Carolina. South Carolina DOR source data last retrieved 2026-06-08.

Tennessee — nexus note

Economic nexus in Tennessee triggers at $100,000 in gross sales delivered into Tennessee in the current or prior calendar year. No transaction count threshold.

What to do next

Use the nexus calculator to check exactly which of South Carolina and Tennessee you've already triggered. Then read each state's full guide:

South Carolina overview →Tennessee overview →

Frequently asked questions

Which state has the lower sales tax nexus threshold, South Carolina or Tennessee?: Both South Carolina and Tennessee publish the same economic nexus dollar threshold of $100,000, so a remote seller would reach each state's published threshold at the same level of in-state sales. These are the thresholds published by each state's tax authority as of 2026-06-08; confirm against the official source before registering.
Do both South Carolina and Tennessee have marketplace facilitator laws?: Yes. Both South Carolina and Tennessee have marketplace facilitator laws, so marketplaces such as Amazon, Etsy, and eBay collect and remit sales tax on the sales they facilitate in both states. Direct-to-consumer sales you make outside a marketplace remain your own responsibility once you cross each state's threshold. Verified 2026-06-08.
Which has the lower sales tax rate, South Carolina or Tennessee?: South Carolina has the lower combined state and local sales tax rate at 7.49%, compared with 9.61% in Tennessee. These are the statewide base rate plus the average local rate; the exact rate depends on the customer's delivery address. As of 2026-06-08.
Do I need to register for sales tax in both South Carolina and Tennessee?: It depends on where you cross each state's economic nexus threshold (or have physical presence there). South Carolina's published threshold is $100,000, and Tennessee's is $100,000. You generally register in a state only once you cross its threshold, so you may have an obligation in one, both, or neither. Run the nexus calculator with your actual sales and confirm with each state's official source. Thresholds as of 2026-06-08.
When did economic nexus take effect in South Carolina and Tennessee?: South Carolina's economic nexus rule took effect on 2018-11-01, and Tennessee's took effect on 2020-10-01. Both stem from the 2018 South Dakota v. Wayfair Supreme Court decision, which let states require remote sellers to collect once an economic threshold is met.

Sources

date_retrieved: South Carolina 2026-06-08 · Tennessee 2026-05-27

South Carolina: https://dor.sc.gov/
South Carolina: https://dor.sc.gov/index.php/sales-use-tax-index/sales-tax/remote-sellers
South Carolina: https://dor.sc.gov/sales-use-tax-marketplace-facilitators-and-third-parties-whose-products-are-sold-marketplace-guidance-and-tax
South Carolina: https://dor.sc.gov/tax/sales
South Carolina: https://www.salestaxinstitute.com/resources/economic-nexus-state-guide
South Carolina: https://taxfoundation.org/data/all/state/sales-tax-rates/
Tennessee: https://www.tn.gov/revenue.html
Tennessee: https://www.tn.gov/revenue/taxes/sales-and-use-tax/out-of-state-sellers.html
Tennessee: https://www.salestaxinstitute.com/resources/economic-nexus-state-guide
Tennessee: https://taxfoundation.org/data/all/state/sales-tax-rates/