How do property taxes work in South Carolina? Here’s what you need to know.
There are two tax rates that the government levies on property in South Carolina: the owner-occupied rate and the commercial rate.
If you have a property you’re using as your primary residence and it has been registered as such with your county, they will levy that tax at the owner-occupied rate, which is 4%. If you have a property such as a rental or commercial property, they’ll levy that tax rate at the commercial rate, or 6%.
Typically, for every $100,000 in the property’s sales price, the owner-occupied taxes are around $650 to $750 per year. The sales price is what usually determines the assessed value of a property—at least initially; the tax assessor can reassess anytime they want, which means you might find your taxes going up or down. Last year, my taxes went up because we’re building a new school in our county, so they levied a big tax to help with those costs. I believe I saw a 13% increase.
If you’re not living in the property, they’ll tax you for about three times the owner-occupied rate. The key here is to make sure you have the proper tax rate filed with the county. Another thing to keep in mind is that if you rent out a property you own and then buy another house, your taxes will go up. That will eat into your cash flow from the rental property, so be sure to factor that in when you’re making plans.
Finally, remember that if you’re over the age of 65 and the property is your primary residence, you qualify for a homestead exemption, which means the county will cut $50,000 off the assessed value of the home. That will save you nearly $300 a year!
We can put you in touch with trusted attorneys who can give you more in-depth information on this subject. If you have any other questions, feel free to reach out to us. We’d love to help you.