Sales tax on labor in South Carolina: not taxed on building repairs and new construction; repairs to things and installation depend on the job

Repairing a thing in South Carolina

It depends. Parts plus labor shown separately on the bill: only the parts are taxed. What it turns on: whether parts are used and whether parts and labor are shown separately on the bill.

• “When repairs to machines require only service or service with the use of an inconsequential amount of materials, the amount received is not subject to tax.” — S.C. Code of Regulations, Chapter 117 (Department of Revenue), Reg. 117-306.1 Repairs to Machines, no date on the page
• “When material and service are used in repairing taxable machines with service and materials shown separately, the material only is subject to the tax.” — Reg. 117-306.1 Repairs to Machines, no date on the page
• “When material and service are used in repairing machines not exempted and when there is no separation in the billing, both materials and services are to be included in gross proceeds of sales.” — Reg. 117-306.1 Repairs to Machines, no date on the page

Repairing a home or building in South Carolina

Not taxed. Repairing a building: you pay sales tax on the building materials when you buy them. Services are not taxed in South Carolina unless a law specifically taxes them, and repair labor on buildings is not one of them.

• “Building materials when purchased by builders, contractors, or landowners for use in adding to, repairing or altering real property are subject to either the sales or use tax at the time of purchase by such builder, contractor, or landowner.” — Reg. 117-314.2 Building Materials, no date on the page
• “The receipts from services, when the services are the true object of the transaction, are not subject to the sales and use tax, unless the sales and use tax is specifically imposed by statute on such services” — Reg. 117-308 Professional, Personal, and Other Services, no date on the page

Installation work in South Carolina

It depends. Items that become part of the building (fixtures and heating systems) are building materials: you pay the tax when you buy them.

• “Not subject to the sales or use tax are charges for installation incident to the sale of tangible personal property when such charges are separately stated from the sales price of the property on billing to customers” — Reg. 117-313.3 Installation Charges, no date on the page
• “"Building materials" ... includes such tangible personal property as ... plumbing supplies, plumbing fixtures, pipe, pipe fittings, prefabricated buildings, electrical fixtures, built-in cabinets and furniture, ... air conditioning systems, built-in-fans, heating systems” — Reg. 117-314.2 Building Materials, no date on the page

New construction in South Carolina

Not taxed. Building or adding to real property: you pay sales or use tax on the building materials when you buy them; your labor is not taxed.

• “Building materials when purchased by builders, contractors, or landowners for use in adding to, repairing or altering real property are subject to either the sales or use tax at the time of purchase by such builder, contractor, or landowner.” — Reg. 117-314.2 Building Materials, no date on the page
• “The receipts from services, when the services are the true object of the transaction, are not subject to the sales and use tax, unless the sales and use tax is specifically imposed by statute on such services” — Reg. 117-308 Professional, Personal, and Other Services, no date on the page

Listing labor separately on the bill in South Carolina

Changes the answer.

• “When material and service are used in repairing taxable machines with service and materials shown separately, the material only is subject to the tax.” — Reg. 117-306.1 Repairs to Machines, no date on the page
• “When material and service are used in repairing machines not exempted and when there is no separation in the billing, both materials and services are to be included in gross proceeds of sales.” — Reg. 117-306.1 Repairs to Machines, no date on the page
• “Not subject to the sales or use tax are charges for installation incident to the sale of tangible personal property when such charges are separately stated from the sales price of the property on billing to customers” — Reg. 117-313.3 Installation Charges, no date on the page
• “Not subject to the sales or use tax are charges for installation incident to the sale of tangible personal property when such charges are separately stated from the sales price of the property on billing to customers and provided the seller's books and records of account show the reasonableness of such labor in relation to the sales price of the property.” — S.C. Code of Regulations, Chapter 117 (Department of Revenue), Reg. 117-306.1 Repairs to Machines, no date on the page

Materials on jobs in South Carolina

Contractor is the consumer: building materials bought to add to, repair or alter real property are taxed when the contractor buys them.

• “Building materials when purchased by builders, contractors, or landowners for use in adding to, repairing or altering real property are subject to either the sales or use tax at the time of purchase by such builder, contractor, or landowner.” — Reg. 117-314.2 Building Materials, no date on the page
• “"Building materials" ... includes such tangible personal property as ... plumbing supplies, plumbing fixtures, pipe, pipe fittings, prefabricated buildings, electrical fixtures, built-in cabinets and furniture, ... air conditioning systems, built-in-fans, heating systems” — Reg. 117-314.2 Building Materials, no date on the page

Trade services South Carolina taxes

None of the South Carolina pages used here names a trade service, such as cleaning or lawn care, as taxed on its own.

• “The receipts from services, when the services are the true object of the transaction, are not subject to the sales and use tax, unless the sales and use tax is specifically imposed by statute on such services” — Reg. 117-308 Professional, Personal, and Other Services, no date on the page

What was not checked for South Carolina

• The South Carolina Department of Revenue's contractor manual chapter (September 2025) could not be read, so the state's regulations on the legislature's site were used instead.

Check with the South Carolina Department of Revenue

Before you bill: check with the South Carolina Department of Revenue. As of November 6, 2026.

This is a plain-words summary of each state's own revenue guidance as of November 6, 2026, not tax advice. Rules have exceptions, and cities and counties can add taxes of their own. Check with the state's tax department, linked on every state's page, before you bill.

Compare South Carolina with every state's answer, or with its neighbours just below.

Next door to South Carolina

• Georgia: home repair not taxed, installation depends
• North Carolina: home repair taxed, installation depends

Official sources for South Carolina

• S.C. Code of Regulations, Chapter 117 (Department of Revenue), Reg. 117-306.1 Repairs to Machines — no date shown

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