Property Taxes in South Carolina: 4% vs. 6% - MGC Real Estate (2024)

FAQs

Property Taxes in South Carolina: 4% vs. 6% - MGC Real Estate? ›

A person's primary residence and not more than 5 contiguous acres, when owned totally, or in part, in fee or by life estate and occupied by the owner, is taxed on an assessment equal to 4% of the fair market value. A person's second home or vacation home is taxed at an assessment ratio equal to 6%.

To qualify for the special 4% property tax assessment ratio, the owner of the property must have actually owned and occupied the residence as his legal residence and been occupying that address for some period during the applicable tax year. Only an owner-occupant is eligible to apply for the 4% special assessment.

If you're buying a home in South Carolina, there's some good news: The Palmetto State has some of the lowest property taxes of any state in the U.S. The average effective property tax rate in South Carolina is just 0.5 5%, with a median annual property tax payment of $ 980.

By default, under the South Carolina constitution, properties are assessed at 6% of market value (or taxable value if the property value is capped). Upon application and approval, properties that qualify for the 4% Legal Residence exemption can be assessed at 4% of market value or taxable value.

Each time a deed is recorded, the assessor's office will re-adjust the property tax rate to the standard 6%; however, by filing the Legal Residence Application, you should be able to lower your property taxes significantly.

Residents of South Carolina may be exempt from paying a portion of property taxes for the following criteria: resident of the state for a full calendar year and either over 65 years of age or permanently disabled or legally blind.

Counties in South Carolina collect an average of 0.5% of a property's assesed fair market value as property tax per year. South Carolina has one of the lowest median property tax rates in the United States, with only five states collecting a lower median property tax than South Carolina.

Comparing Taxes

South Carolina residents have one of the lowest property taxes and are ranked 45th in the country for the highest property taxes. North Carolina came in 31st. South Carolinians pay about . 56% of their home's market value.

South Carolina offers a reduced property tax rate of 4% to primary residents, but you must apply with the county assessor; otherwise, the standard rate of 6% applies. Regarding the average effective property tax rate, South Carolina beats Florida with 0.57%.

How does personal property tax work in South Carolina? ›

The fair market value is then assessed at rates established in the State Constitution. For manufacturers, real and personal property are both assessed at 10.5%. The assessment ratio for all other businesses is 6% for real property and 10.5% for personal property. (For homeowners, primary residences are assessed at 4%.)

RESIDENTIAL PROPERTY

A person's primary residence and not more than 5 contiguous acres, when owned totally, or in part, in fee or by life estate and occupied by the owner, is taxed on an assessment equal to 4% of the fair market value. A person's second home or vacation home is taxed at an assessment ratio equal to 6%.

South Carolina law requires counties to reassess every five years. Only real property is reassessed every five years. Values of personal property such as cars, boats and motorcycles are kept current through annual updates by the Department of Revenue.

South Carolina has a 6.00 percent state sales tax rate, a max local sales tax rate of 3.00 percent, and an average combined state and local sales tax rate of 7.43 percent. South Carolina's tax system ranks 31st overall on our 2023 State Business Tax Climate Index.

South Carolina's general state Sales and Use Tax rate is 6%. In certain counties, local Sales and Use Taxes are imposed in addition to the 6% state rate. The general local Sales and Use Tax collected on behalf of local jurisdictions is for school projects, road improvements, capital projects, and other purposes.

If you currently use the property as a second home, a rental, or a commercial space and the property was used as either a second home, rental, or commercial space by the seller from whom you purchased the property, the 6% Exemption likely applies to you for the 2021 tax year.

There is no intangibles tax in South Carolina. An intangibles tax is collected in many states that do not have a general personal income tax and is imposed on bank accounts, interest, dividends, stocks, bonds and other assets. You do not pay a tax in South Carolina on property you sell in another state.

In 1972, the S.C. General Assembly passed the Homestead Exemption Law which provides real estate property tax relief for South Carolinians who are age 65 and over, totally and permanently disabled, or legally blind. The exemption excludes the first $50,000 from the fair market value of your legal residence.

​What is the Homestead Exemption benefit? The Homestead Exemption is a complete exemption of taxes on the first $50,000 in Fair Market Value of your Legal Residence for homeowners over age 65, totally and permanently disabled, or legally blind.

For those 65 years of age or legally blind, the standard deduction was increased in 2022 to $1,750 for Single filers or Head of Household, and $1,400 (per person) for married filing jointly, married filing separately, and Surviving Spouses.

What is the over 65 deduction in South Carolina? ›

An Income Tax deduction of up to $15,000 is allowed against any South Carolina taxable income of a resident individual who is 65 or older by the end of the tax year.

If you make $100,000 a year living in the region of South Carolina, USA, you will be taxed $28,917. That means that your net pay will be $71,083 per year, or $5,924 per month.

On top of the cost of a vehicle, vehicle tax rates are calculated depending on many factors, including the state you live in. Purchases of vehicles are among the biggest sales made in South Carolina, which means that they can often lead to a pricey sales tax bill.

Real estate taxes are relatively similar between the two states. In general, property taxes in Georgia are slightly higher than in South Carolina.

This is slightly below the national average and makes both states highly affordable. However, with home prices middling close to $181k, South Carolina's housing market is marginally cheaper than North Carolina's. This gives South Carolina a hairline win in terms of affordability.

Cost of Living

So is Tennessee or South Carolina better? While both are over 10% below the national median for expenditures, South Carolina has the edge here. As the following chart shows, South Carolina's average is overall 11.5% lower than the national average.

As housing is scarcer, prices are much higher. If you want to live in a more rural area, the prices will be naturally lower and slightly more accessible. It all boils down to whatever you want, of course, but housing costs are significantly higher in Florida than they are in South Carolina.

South Carolina is tax-friendly toward retirees. Social Security income is not taxed. Withdrawals from retirement accounts are partially taxed. Wages are taxed at normal rates, and your marginal state tax rate is 4.00%.

Unfortunately, there are no states without a property tax. Property taxes remain a significant contributor to overall state income. Tax funds are used to operate and maintain essential government services like law enforcement, infrastructure, education, transportation, parks, water and sewer service improvements.

Do you pay tax on your car every year in South Carolina? ›

Under South Carolina law, you are required to pay personal property taxes on your vehicle before you can obtain a license plate. Taxes must be paid annually thereafter in order to receive a new decal. Property tax is based on the retail value of the vehicle and the taxing district in which you reside.

2/ South Carolina collects a sales tax on the sale or lease of a motor vehicle equal to the lesser of 5% up to $300 per vehicle. Additional local option or municipal option sales taxes are not permitted by law. C/ North Carolina collects a 3% Highway Use Tax on vehicles in lieu of a state sales tax.

Individual Income Tax rates range from 0% to a top rate of 7% on taxable income for tax years 2021 ​and prior and from 0% to a top rate of 6.5% on taxable i​ncome for tax year 2022. Tax brackets are adjusted annually for inflation.

Horry County has the lowest property tax rate in the state as well as being home to some of the best schools in South Carolina.

The Homestead Exemption Program is a State funded program authorized under Section 12-37-250 of the South Carolina Code of Laws. The program exempts the first $50,000 fair market value of primary residence from all property taxes.

All of the data below comes from the Census Bureau's 2021 1-year American Community Survey (ACS) Estimates. Hawaii has the lowest property tax rate in the U.S. at 0.27%. The Aloha state has a home median value of $722,500.

Property tax rolls are open by September 30 for payments to be made to the County Treasurer. Taxes for the current year must be paid by January 15 of the following year. Payments made after January 15 will incur a 3% penalty. Payments made after February 1 will incur a 10% penalty.

The five-year reassessment cycle in South Carolina is an appraisal freeze, only broken on a property sale or change to a property. The fair market value of real property is constantly changing due to factors such as location, market demand, the age and physical condition of a neighborhood, and the state of the economy.

SECTION 12-43-220. Classifications shall be equal and uniform; particular classifications and assessment ratios; procedures for claiming certain classifications; roll-back taxes. Except as otherwise provided, the ratio of assessment to value of property in each class shall be equal and uniform throughout the State.

Property tax is administered and collected by local governments, with assistance from the SCDOR. Real and personal property are subject to the tax. Approximately two-thirds of county-levied property taxes are used to support public education.

How do I pay property taxes in South Carolina? ›

You can pay your property tax bill to the Treasurer's Office with cash or check. You can also pay by credit card online at https://sc-charleston.publicaccessnow.com under "Tax Records Search and Payment".

RESIDENTIAL PROPERTY

A person's primary residence and not more than 5 contiguous acres, when owned totally, or in part, in fee or by life estate and occupied by the owner, is taxed on an assessment equal to 4% of the fair market value. A person's second home or vacation home is taxed at an assessment ratio equal to 6%.

A person's primary residence is assessed at 4%; a second residence or other real property used or held for an individual's personal use, or vacant land is assessed at 6%. Personal motor vehicles are assessed at 6%; generally, motor homes and boats that are not a primary or secondary residence are assessed at 10.5%.

In South Carolina, the buyer at the property tax sale doesn't get title to the property immediately. Instead, the purchaser gets a receipt (basically, a tax lien certificate), subject to the homeowner's right of redemption. (S.C.

It is customary for the seller of the property to pay all real estate transfer taxes in South Carolina. The transfer taxes are usually due at the time of closing, alongside other fees such as appraisal fees or agent fees.

Redemption: Payment of taxes, levies, penalties and interest by the delinquent taxpayer after real property has been sold at a delinquent tax sale. This process allows the delinquent taxpayer to retain possession of the property.