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Tax Rate Information for South Carolina

If you are considering moving to South Carolina or have been a resident for only a short period of time, you may have questions about South Carolina’s tax structure. This publication contains information for South Carolina’s main state and local taxes.

Income Taxes:

  • Social Security Benefits are not taxed in South Carolina.
  • Retirement income is taxed, but there are generous deductions. Qualified income includes public employee retirement plans, Keogh plans, IRAs, 401(k)s, private pensions, and military retirement benefits.
  • If you are 65 years or older you can take a senior tax deduction of $15,000 (single filers) or $30,000 (married couples filing jointly).
  • The $15,000 deduction must be offset by the amount taken with the retirement income deduction. So, if a single taxpayer takes a $10,000 retirement income deduction, they can only take a senior tax deduction of $5,000 for a total deduction of $15,000. Retired military personnel 65+ can deduct a portion of their military retirement benefits.

Property Taxes:

  • The market value of an owner-occupied legal residence is assessed at 4% of fair market value. This market value is determined because of a periodic countywide reassessment.
  • A legal primary residence and up to five acres of surrounding land is assessed at .47%. Example: a $300,000 home would have $1,410 in annual taxes after home credits in Oconee County.
  • The fair market value of owner-occupied residential property receiving the 4% assessment rate is exempt from all property taxes imposed for school operating purposes.

Resident Rate

  • A taxpayer qualifies for the legal residence rate by filing an application at the county assessor’s office where the property is located.
  • You must provide proof that you reside in the home. This proof may include, among other things, the South Carolina Driver’s License and Motor Vehicle registrations which show the property address.

Non-resident Rate

  • The assessment ratio on a second home owned by you is 6%. Property tax relief does not apply to a second home. The exemption for school operating purposes does not apply to a second home.

Homestead Exemption

  • For homeowners 65 and older, the state’s homestead exemption allows the first $50,000 of the fair market value of a primary residence to be exempt from local property taxes.
  • To quality, you must be at least 65 years old and a legal resident of SC for one year as of December 31 of the preceding year.

Local Taxes

  • Counties, cities, and school districts are authorized to impose ad valorem taxes on real and personal property. Local governments assess and collect most property taxes which support public schools and services.
  • The millage rate of the local government is then applied to the assessed value resulting in the tax liability. The millage rate is set by local governments and varies throughout the state.
  • Millage rates vary from county to county, and you would need to check with officials in the county where you wish to reside to estimate your property tax liability.
  • If you are 65 or older, or legally blind or permanently and totally disabled, and you have resided in South Carolina for a full calendar year, you are eligible for a homestead exemption of $50,000 from the value of your home.

 Vehicle Property

  • Automobiles are taxed at very low rates that vary by county. When you purchase a car in SC, there is a sales tax of 5% with a cap of $500, on the purchase if over $10,000.
  • Auto registration is $15 for the title fee and $40 registration/license fee. The registration fee drops to $38 if you are 64 years, and $36 if you are 65 and older.
  • SC gasoline tax is 26 cents per gallon at the pump.

Sales Tax:

  • South Carolina Sales tax is 6% and allows for local counties to collect a rural sales tax which averages 1.5%.
  • Oconee County has no county level sales tax. Prescription drugs and unprepared food items are exempt from sales tax.
  • Seniors 85 and older pay 5% provided they request it and show proof of age.

Inheritance and Estate Taxes:

  • There is no inheritance tax or estate tax.

 NEED MORE INFORMATION?

Visit us at dor.sc.gov for information on all major South Carolina taxes, advisory opinions, and tax forms. Connect with the SCDOR on Facebook and Twitter for up-to-date news and announcements.

 

For more information regarding South Carolina State Government, visit sc.gov.