Aircraft Financing in South Carolina:

Why South Carolina's aircraft tax structure rewards how you buy, not just what you buy

South Carolina's aerospace industry carries an economic impact of more than $28 billion statewide, anchored by Boeing's 787 Dreamliner final assembly campus in North Charleston, which employs more than 8,200 people. The state's commercial airports overall support more than 130,000 jobs and $22.5 billion in combined annual economic impact.

The single most distinctive fact about South Carolina, though, is the tax structure below: how much tax you owe depends heavily on whether you buy from a dealer or a private individual, not on the purchase price alone.

The rates above are our live national rates: South Carolina residency neither helps nor hurts your pricing. What is South Carolina-specific is the tax picture below, and it is one of the more structurally distinctive systems in the country for this exact reason.

Sales tax, casual excise tax, and property tax: the South Carolina layer

Sales and use tax. South Carolina caps its sales tax on aircraft at a flat $500, regardless of purchase price: the state's 6 percent general rate simply stops applying past that point, and this maximum-tax treatment also exempts the sale from local option taxes. That cap applies whenever a dealer or other retailer delivers the aircraft in South Carolina, even to a nonresident who immediately flies it out of state. South Carolina has no fly-away or nonresident exemption, confirmed directly in the Department of Revenue's own published guidance. Use tax on an aircraft brought in from out of state after being bought from an out-of-state retailer is subject to the same $500 cap. Private-party sales work differently, and often better: South Carolina's casual excise tax, which would otherwise apply a similar charge to sales by non-dealers, is triggered by the state's own issuance of a title or proof of ownership, and aircraft are titled exclusively by the FAA, a federal agency, not by any South Carolina state agency. The Department of Revenue has confirmed in its own guidance that the casual excise tax simply does not apply to aircraft bought from a private seller. A genuine private-party sale can escape South Carolina tax altogether; a dealer sale cannot.

Property tax. South Carolina counties do assess annual property tax on general aviation aircraft, but at a reduced assessment ratio each county sets by ordinance, ranging from as low as 4 percent up to the state's standard 10.5 percent of fair market value. Greenville County, for example, assesses aircraft at 4 percent; Beaufort County uses 6 percent. Check with your specific county auditor, since the ratio is set locally and can change.

This is orientation, not advice: South Carolina's tax outcome depends heavily on whether your seller is a dealer or a private individual, and on your county's aircraft assessment ratio. Engage a South Carolina aviation tax advisor before closing.

Run the South Carolina Buyer's Numbers

Interactive: payment and year-one depreciation, side by side

The two numbers every South Carolina business buyer runs first: the monthly payment at today's rate, and what 100 percent bonus depreciation could be worth in year one. Both in one place, with the state layer linked below.

What South Carolina buyers should know

• Rates and terms are national. Same live pricing as the strip above: up to 20-year terms on certified pistons, 15 to 20 percent down for strong credit, soft-pull pre-qualification available.
• Closings are remote. Your closing runs through FAA escrow in Oklahoma City regardless of where in South Carolina you or the aircraft sit. Our title & escrow guide walks the sequence.
• Buying from a private seller can mean zero state tax. Because South Carolina's casual excise tax doesn't reach FAA-titled aircraft, a private-party purchase can avoid South Carolina tax entirely, while the same aircraft bought from a dealer is capped at $500. Seller type matters here more than price.
• Business use is common here. Charleston's Boeing campus and the broader aerospace supply chain support well-worn underwriting paths. Business Part 91 use finances at 80–85 percent LTV with terms up to 20 years; tell us the mission upfront.