Charleston, SC Local Taxes & Fees: Business Tax Classification (2026)
Key Facts
- Governing section
- City Code § 17-36 (rate/class schedule)
- Classification basis
- NAICS codes via Appendix B
- Tax due date
- April 30 each year
- Late penalty
- Up to 35% of tax owed
- Violation penalty
- Up to $500 fine or 30 days jail
- License year
- May 1 through April 30
Summary
Charleston taxes every business on gross income using a NAICS-based classification and rate schedule set out in City Code Chapter 17, Appendix A and B. The License Official assigns whichever classification most specifically fits the business, updated at least every two years from the Municipal Association of South Carolina's standardized schedule. Tax is due April 30 each year.
(a)The business license tax for each class of businesses subject to this ordinance shall be computed in accordance with the current business license rate schedule, designated as Appendix A to this article, which may be amended from time to time by the council.(b)The current business license class schedule is attached hereto as Appendix B. Hereafter, no later than December 31 of each odd year, the municipality shall adopt, by article, the latest standardized business license class schedule as recommended by the Municipal Association of South Carolina and adopted by the Director of the South Carolina Revenue and Fiscal Affairs Office.(c)The classifications included in each rate class are listed with NAICS codes, by sector, subsector, group, or industry. The classification in the most recent version of the business license class schedule adopted by the council that most specifically identifies the subject business shall be applied to the business. The license official shall have the authority to make the determination of the classification most specifically applicable to a subject business.
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Code of Ordinances: Supplement 114 | Zoning: Supplement 25).
Full Breakdown
Charleston's business license year runs from May 1 to April 30 under Sec. 17-18, and the tax is computed on the licensee's gross income for the preceding calendar or fiscal year, or on projected income for a new business, per Sec. 17-19. Anyone doing business in the city, including annexed businesses, must register and apply for a license before starting operations; a certificate of occupancy or certificate of operation is required first, and applicants have five days after that certificate issues to apply, per Sec.
17-20. Sec. 17-36 puts the actual tax computation on a NAICS-coded rate schedule: Appendix A sets the rates for each numbered rate class, and Appendix B lists which NAICS sectors, subsectors, groups and industries fall into each class. The License Official has authority to pick whichever classification most specifically identifies the subject business when a business could fit more than one description. No later than December 31 of each odd year the city must adopt the latest standardized class schedule recommended by the Municipal Association of South Carolina and adopted by the Director of the South Carolina Revenue and Fiscal Affairs Office.
Wholesalers are exempt unless they keep a warehouse or distribution site in the city (Sec. 17-21(c)), and charitable organizations are exempt on income that is not unrelated business income (Sec. 17-21(d)-(e)). Two percent of all collected license tax revenue is diverted to the city's drainage fund under Sec. 17-37.
Violations & Fines
Late payment draws an automatic penalty under Sec. 17-27: five percent of the unpaid tax for the first month past the April 30 due date, another twenty percent for the second month (25 percent total), and a further ten percent for the third month, capping at thirty-five percent of the tax owed; these penalties cannot be waived. Separately, Sec. 17-34 makes any violation of the licensing article punishable by up to a $500 fine or 30 days in jail, with each day of noncompliance a distinct offense.
Frequently Asked Questions
How does Charleston decide my business's tax classification?
When is Charleston's business license tax due?
Can I appeal my assessed classification or tax amount?
Does the classification schedule change often?
Sources & Official References
Other rules in Charleston
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