Thinking about turning your Fort Mill place into an Airbnb or short-term rental? Taxes and local rules can feel confusing, and small mistakes can get expensive. You want a simple path that tells you what to charge, who files what, and how to stay compliant. This guide breaks it down with plain-English steps and official sources you can trust. Let’s dive in.
What taxes apply to Fort Mill short-term rentals
State accommodations and sales taxes
South Carolina treats short stays as taxable accommodations. Your rental income is generally subject to 5% state sales tax plus a 2% state accommodations tax. Additional local sales and use taxes may apply, and you file using MyDORWAY. See the SCDOR overview of accommodations tax and filing steps for details and due dates by the 20th of the following month. Review SCDOR’s accommodations guidance.
Local accommodations and hospitality taxes
Local lodging taxes can vary by address. York County says hotels in unincorporated York County collect a 3% local accommodations tax paid to the county. If your property is inside municipal limits, the municipal rate and process may differ, so confirm for your exact address. See York County’s FAQ on local accommodations tax.
Fort Mill also levies a 2% Local Hospitality Tax on prepared or modified foods. This is separate from lodging tax. It applies only if you sell or provide prepared food to guests and is remitted to the Town following its instructions. Check Fort Mill’s hospitality FAQ and remittance info.
What fees are taxable
In South Carolina, the taxable amount generally includes gross proceeds from the stay. Many places treat cleaning, pet, extra-person, and similar fees as part of the taxable charge. The exact treatment can vary, so verify with SCDOR’s guidance and municipality rate references. Start with SCDOR’s accommodations page.
When the accommodations tax may not apply
Common exclusions include stays of 90 or more continuous days and certain exempt payers. SCDOR also lists limited exemptions for small owner-occupied facilities under specific conditions. Always confirm your situation with the state’s guidance. See SCDOR’s accommodations guidance.
Who collects and remits
Marketplace platforms and your responsibility
South Carolina law defines marketplace facilitators and when they must collect and remit tax. In practice, platforms may collect some taxes but not all local lodging taxes. You are responsible for confirming which taxes a platform collects for your exact property address and for remitting any missing local taxes yourself. Read the marketplace facilitator statute background.
How to verify on a platform:
- Check your listing’s Taxes or Payout settings for “taxes collected and remitted” for your address.
- Download or screenshot the platform’s confirmation and monthly statements showing tax collection.
- If any tax is not listed, plan to register and remit it yourself.
Register, file, and pay in South Carolina
Do you need a Retail License
If you accept payment directly from guests or take direct bookings, SCDOR requires you to hold a South Carolina Retail License so you can file and remit accommodations tax. If all bookings and payments go through a platform or manager that collects and remits for you, you may not need a Retail License. Confirm and keep documentation. See SCDOR’s accommodations page.
File and pay on MyDORWAY
Returns are typically due by the 20th of the month after the filing period. MyDORWAY supports multiple properties and requires location-specific reporting when applicable. Review SCDOR filing guidance.
Local remittance for Fort Mill and York County
Local accommodations taxes may be paid to a municipality or the county, depending on your address and who administers that tax. York County collects the 3% county accommodations tax for unincorporated areas. Fort Mill’s 2% hospitality tax on prepared food is paid to the Town using its remittance instructions. Confirm whether your property is inside Town limits and whether a municipal accommodations tax applies. Use the Fort Mill FAQ and York County’s FAQ to verify.
Local rules beyond taxes
Zoning and permits
Fort Mill does not list a townwide short-term rental licensing program in its FAQ, but zoning, occupancy, and building codes still apply. Before listing, confirm your property’s zoning and any use restrictions with the Town’s Planning Department. Start with Fort Mill’s FAQs and planning contacts.
HOA and deed restrictions
Your HOA may restrict or prohibit short-term rentals even if the Town allows them. Review your covenants and check with your HOA management company before accepting bookings. Fort Mill’s FAQ page can help you connect with Town contacts for zoning questions.
Safety and inspections
You are responsible for life-safety compliance, including smoke and CO detectors and adherence to building and fire codes. If you have questions, contact the Town’s Building and Fire departments. Use Fort Mill’s FAQ to find contacts.
Fort Mill host checklist
- Confirm the property address is inside or outside Fort Mill town limits and note which jurisdiction applies. Use Fort Mill’s FAQ as a starting point.
- Decide if you will take direct bookings. If yes, apply for a South Carolina Retail License and set up MyDORWAY. See SCDOR’s accommodations page.
- If you use a platform, confirm in writing which taxes it collects for your address. Save screenshots or statements.
- Determine your combined tax rate using SCDOR and local sources. Then set up your pricing to collect the correct amount. SCDOR overview and York County FAQ.
- If you sell prepared food to guests, register to collect Fort Mill’s 2% hospitality tax and follow the Town’s remittance instructions. Fort Mill hospitality FAQ.
- Keep detailed records of bookings, gross receipts, and line-item fees for each property.
Avoid penalties and fix past issues
Returns are due by the 20th of the following month. If you missed filings or payments, act fast. SCDOR publishes a penalty waiver process for limited circumstances, though interest is usually not waived. Review SCDOR’s penalty waiver information.
Ready to move forward
Short-term rentals can be a smart addition to your Fort Mill portfolio when you stay on top of taxes and local rules. If you want help thinking through strategy, value, or resale impact, reach out to a local expert you can trust. Connect with Dee Brummett for friendly guidance grounded in Fort Mill market know-how.
FAQs
What taxes should a Fort Mill Airbnb host charge guests
- The state 5% sales tax plus 2% accommodations tax generally apply, and additional local accommodations or hospitality taxes may apply based on your address; verify your combined rate with SCDOR and local pages. Start here.
Does Airbnb collect all required taxes in Fort Mill
- Not always. Platforms may collect state and some local taxes, but coverage varies; you must confirm which taxes are collected for your specific address and remit any missing local taxes. See marketplace rules.
Do I need a South Carolina Retail License if I use a platform
- You generally need a Retail License if you accept payment directly; if a marketplace or manager collects and remits for you, you may not need one, but confirm and keep documentation. SCDOR guidance.
How do Fort Mill hospitality and lodging taxes differ
- Hospitality tax is a 2% Town tax on prepared or modified foods. Lodging or accommodations taxes apply to short-term stays. They are separate and can both apply depending on what you sell. Fort Mill FAQ.
What if I am behind on short-term rental tax filings
- Contact SCDOR and applicable local tax offices quickly. South Carolina offers a penalty waiver process in some cases, though interest usually still applies. Penalty waiver details.
