What SC Homeowners and Buyers Need to Know About Taxes

Waterfront Homes for Sale in Charleston
April 20, 2021
Everything You Need To Know About Property Taxes in Charleston
July 1, 2021
Show all

What SC Homeowners and Buyers Need to Know About Taxes

taxes-time
From gstudioimagen – www.freepik.com

What is taxation and why is it important?

It goes without saying that taxes are something that nobody can avoid. The taxing system in the USA is as ranging  as the country itself. Taxation, different insurance rates and other governmental requirements on real estate taxes varies from state to state. Sometimes the difference is very vivid and many people choose where to move or buy a property depending on the taxation as sometimes it can get complicated.

It is very much recommended to consult a firm that specializes in taxes and taxing law when it comes to dealing with taxing. Let’s firstly understand what real estate taxes are and why the government needs it.

A tax is a compulsory financial charge imposed on a taxpayer by the government. Taxes are very different ranging from real estate taxes to sales taxes. There are even taxes on real estate sale and every tax has different rates depending on the state. Even though taxes are very annoying for everyone, they play a huge role in creating a good society and community. Why do we need to pay real estate taxes or any other type?

From studiogstock – www.freepik.com

Governments need to provide some services to the communities which are done through the fund they have by taxes. Some of those services include but are not limited to education, health, defence, infrastructure and much more!  To do that they must collect money which is called revenue. The whole cycle of collecting taxes and the revenue is called a tax system which can be different on local and state levels.

Indeed if asked, everyone would love to get rid of taxes, especially real estate taxes that many people fear. Paying less taxes means more money is there to spend on your expenses but on the other hand as mentioned above taxes play an essential role in creating better communities. One of the problems of tax payments is that people tend to have physical documents which on one hand is more preferable but nowadays people have more access to online services and payments as well which makes things a bit less complicated. 

What you need to know about taxes in SC

Each state’s tax code is a multifaceted system with many moving parts, and South Carolina is no exception. The first step towards understanding South Carolina’s tax code is knowing the basics. Even within the state there can be differences in area taxes, Charleston county SC property tax can vary from other county real estate taxes.

  1. South Carolinians generally pay 8.4% of per capita income in state and local taxes, being below the national average which is 9.9%.
  2. Individual income tax rates range from 3% to 7% of taxable income, with deductions available.

Deductions:

  • A deduction of 44% is allowed on net long-term capital gains; the South Carolina holding period is the same as the federal. 
  • Beginning with the first year you receive qualified retirement income and until you reach age 65, you deduct a portion of your qualified retirement plan.
  • At age 65, all residents are eligible for a deduction. 
  • Reserve pay income received from the National Guard or armed forces for annual training and weekend drills is exempt from tax. 
  • Disability income from a total and permanent disability is deductible. 
  • South Carolina does not tax Social Security benefits or railroad retirement.
  • Interest you receive from federal obligations is deductible. 
  • A 100% deduction of the federal personal exemption is allowed for every child under the age of six. 
  • A deduction is allowed for a special needs adopted child and some property tax deductions for homeowners.

3. South Carolina just like other states has different new homeowner property taxes with slight rate changes in different cities and counties.
Let’s compare Charleston county SC real estate taxes to Berkeley and Dorchester.

The market value of a legal residence and up to five acres of surrounding land utilizes a tax rate of 4 percent. Additionally, a local government applies its millage rate to the value.

Property Tax Rate


Berkeley County 


The median property tax is $761 per year for a home worth the median value of $149,700. Additionally the local government collects, on average, 0.51% of a property’s assessed fair market value as property tax.


Charleston County


The median property tax is $1,205 per year for a home worth the median value of $242,100. Additionally the local government collects, on average, 0.5% of a property’s assessed fair market value as Charleston county SC property tax.


Dorchester County 


The median property tax is $1,147 per year for a home worth the median value of $171,400. Additionally the local government collects, on average, 0.67% of a property’s assessed fair market value as property tax.

Out of the 3143 counties in the United States, South Carolina ranks 1168th based on the median property tax amount that property owners pay. With one of the lowest median property rates, the SC property tax rate is only an average of 0.5 percent of real estate properties. 

Top 10 (by population) County Property Rates in South Carolina

County Median Home ValueMedian Annual Property Tax Average Effective Property Tax Rate
Greenville $172,100$1,1840.69%
Richland $158,200$1,2500.79%
Horry$172,500$6520.38%
Spartanburg $133,700$8540.64%
Lexington $151,900$8520.56%
York$186,000$1,1590.62%
Anderson$137,200$7850.57%
Beaufort$288,900$1,4660.51%
Aiken$142,200$6670.47%
Florence $130,400$5530.42%

Top 3 counties with the lowest property taxes

  1. Horry County which has an average tax rate of 0.38% is a beautiful area which covers up the metropolitan area and is the central county in the Myrtle Beach-Conway-North Myrtle Beach. Horry County has a population of 310,186 and the median home value is $172,500. The living cost rate in Horry is 90.2 which is below the US average 100.
  2. Darlington County which has an average tax rate of 0.44% is in the northeastern part of South Carolina and is covered with amazing neighborhoods, mind-blowing sights and cities. Darlington county has a population of 67,572, and the median home value is $87,800. The living cost rate in Darlington is 74.2 which is below the US average 100.
  3. Oconee County has an average tax rate of 0.45%. It is the westernmost county in South Carolina. Oconee County’s population is 75,926 and the median home value is $155,200. The living cost rate in Oconee is 87.2 which is below the US average 100.

Main Types of Taxation

Income tax: Governments impose income taxes on financial income generated by all entities within their jurisdiction, including individuals and businesses.
Corporate tax: This type of tax is imposed on the profit of a business.
Capital gains: A tax on capital gains is imposed on any capital gains or profits made by people or businesses from the sale of certain assets including stocks, bonds, or real estate.
Property tax: A property tax is assessed by a local government and paid for by the owner of a property. This tax is calculated based on property and land values.
Inheritance: A type of tax levied on individuals who inherit the estate of a deceased person.
Sales tax: A consumption tax imposed by a government on the sale of goods and services. This can take the form of a value-added tax (VAT), a goods and services tax (GST), a state or provincial sales tax, or an excise tax. 

Leave a Reply

Your email address will not be published. Required fields are marked *