{"id":7208,"date":"2018-06-29T05:28:09","date_gmt":"2018-06-29T09:28:09","guid":{"rendered":"http:\/\/teammovemortgage.com\/?p=7208"},"modified":"2021-01-18T13:22:46","modified_gmt":"2021-01-18T13:22:46","slug":"sc-tax","status":"publish","type":"post","link":"https:\/\/teammovemortgage.com\/blog\/sc-tax\/","title":{"rendered":"Buying a Home in South Carolina? Answers to Paying Taxes in SC"},"content":{"rendered":"\r\n

Oh wow!\u00a0 An article about taxes!\u00a0 I know, sounds boring right?\u00a0 But, if you are considering a home purchase in SC, it is necessary to understand how taxes work in South Carolina!\u00a0 In addition to South Carolina being such a great place to live,\u00a0A USA Today article<\/a> ranked South Carolina as the 7th lowest effective property tax rate in the country for 2017!\u00a0 So, let’s discuss the SC tax rates\u00a0involving real estate, vehicles, sales, and income.\u00a0 Plus, we will discuss\u00a0how each could affect your bottom line and lifestyle.\u00a0 You know you want some money left over to enjoy the golf, food, and outdoor life!<\/p>\r\n\r\n\r\n\r\n

\"sc<\/figure>\r\n\r\n\r\n\r\n
picture source: Unsplash<\/a> by Rawpixel<\/a><\/h6>\r\n\r\n\r\n\r\n

Benefits of Living in South Carolina<\/h2>\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n
Benefits<\/strong><\/td>\r\n\u00a0<\/td>\r\nAvailable?<\/strong><\/td>\r\n<\/tr>\r\n
Amazing Golf<\/td>\r\n\u00a0<\/td>\r\nYes<\/td>\r\n<\/tr>\r\n
Endless Dining<\/td>\r\n\u00a0<\/td>\r\nYes<\/td>\r\n<\/tr>\r\n
Beach<\/td>\r\n\u00a0<\/td>\r\nYes<\/td>\r\n<\/tr>\r\n
Entertainment<\/td>\r\n\u00a0<\/td>\r\nYes<\/td>\r\n<\/tr>\r\n
Diverse Culture<\/td>\r\n\u00a0<\/td>\r\nYes<\/td>\r\n<\/tr>\r\n
Affordable Living<\/td>\r\n\u00a0<\/td>\r\nYes<\/td>\r\n<\/tr>\r\n
Low Taxes<\/td>\r\n\u00a0<\/td>\r\nYes<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n\r\n\r\n\r\n
VA Loan No Money Down – No Limit Effective 1\/1\/2020!<\/a><\/div>\r\n\r\n\r\n\r\n

South Carolina Property Tax<\/h2>\r\n\r\n\r\n\r\n

South Carolina breaks down real estate property tax rates into two main categories.\u00a0\u00a0The\u00a0two\u00a0SC tax rate categories are based on residents and nonresidents.\u00a0 Basically, if you live in SC the property tax rate is lower than owning a second home or rental property.\u00a0 Sometimes buyers are surprised at the nonresident property taxes, but they certainly aren’t to the level of many northern states.\u00a0 Let’s discuss the main differences.<\/p>\r\n\r\n\r\n\r\n

Unbelievable SC First Time Home Buyer Programs<\/a><\/div>\r\n\r\n\r\n\r\n

Buying a SC Property as a Nonresident<\/h3>\r\n\r\n\r\n\r\n

The standard SC property tax rate for farms and residential homes\u00a0is\u00a06% of the assessed value, which is higher than the primary residence rate.\u00a0 Buyers or property owners with a second home<\/a><\/strong> or rental property<\/strong><\/a> will pay this standard, nonresident tax rate.\u00a0 Besides the property tax rate, each county and township (if applicable) has a millage rate\u00a0as well.\u00a0 You will see how the millage rate factors into the tax as well below.<\/p>\r\n\r\n\r\n\r\n

Warning!<\/strong><\/p>\r\n\r\n\r\n\r\n

Of course, everyone would love to pay the lower primary residence tax rate.\u00a0 A word of advice – Do not say a home will be a primary residence just to get the lower taxes when it is really not going to be.\u00a0 Believe it or not, a common question goes like this, “Can I just say that it is my primary residence?”.\u00a0 Just don’t go there, because it is mortgage fraud and the tax office would require proof of residency too.<\/p>\r\n\r\n\r\n\r\n

Buying a Principal Residence in SC<\/h3>\r\n\r\n\r\n\r\n

As mentioned, residents have an advantage in property taxes.\u00a0 Actually, SC property tax rates are among the best in the country!\u00a0 The resident property tax rate is 4%,\u00a0plus an owner occupied home could additionally qualify for\u00a0residential exemption.\u00a0\u00a0The SC residential exemption reduces the property tax bill even lower after the 4% discounted tax rate!<\/p>\r\n\r\n\r\n\r\n

Here is an example.\u00a0 In order to receive the Horry County SC Residential Exemption, homeowners must prove residency.\u00a0 This is accomplished by\u00a0completing their “Legal Residence Special Assessment Application” once the applicant is a homeowner in SC.\u00a0\u00a0This form must be given to the Horry County Tax Assessor\u2019s office.<\/p>\r\n\r\n\r\n\r\n

SC Tax Residential Exemption Example<\/h2>\r\n\r\n\r\n\r\n

Below is a hypothetical example for calculating property taxes on a primary residence including the residential exemption in Horry County.<\/p>\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n
Fair Market Value<\/td>\r\n\u00a0<\/td>\r\n$125,000<\/td>\r\n<\/tr>\r\n
Assessment Ratio<\/td>\r\n\u00a0<\/td>\r\nX 4%<\/td>\r\n<\/tr>\r\n
Assessed Value<\/td>\r\n\u00a0<\/td>\r\n$5,000<\/td>\r\n<\/tr>\r\n
Sample County Millage Rate<\/td>\r\n\u00a0<\/td>\r\nX .21<\/td>\r\n<\/tr>\r\n
Taxes Before Discount<\/td>\r\n\u00a0<\/td>\r\n$1,050<\/td>\r\n<\/tr>\r\n
Exemption Tax Credit<\/td>\r\n\u00a0<\/td>\r\n– $600<\/td>\r\n<\/tr>\r\n
Total Taxes With Discount<\/td>\r\n\u00a0<\/td>\r\n$450<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n\r\n\r\n\r\n

Keep in mind that this chart\u00a0will give you a “close figure” and doesn\u2019t take all factors into account.\u00a0 Each property could be a little different based on district and more.\u00a0 If you have located a specific property, look it up first in the county tax website.\u00a0 If the 6% tax rate is used, you could use the above example to figure the approximate lower primary residence taxes.<\/p>\r\n\r\n\r\n\r\n\r\n\r\n

SC Tax Homestead Exemption<\/h3>\r\n\r\n\r\n\r\n

South Carolina has another property tax discount called the homestead exemption.\u00a0\u00a0It is an exemption of property taxes on the first\u00a0$50,000 in Fair Market Value of your Legal Residence for homeowners over age 65, totally and permanently disabled, or legally blind.\u00a0 If a homeowner potentially fits within these guidelines, apply for the exemption!\u00a0 It could save a lot of money.\u00a0<\/p>\r\n\r\n\r\n\r\n

Learn More About SC Homestead Exemption<\/a><\/div>\r\n\r\n\r\n\r\n

SC Property Tax Exemption for Disabled Veterans<\/h3>\r\n\r\n\r\n\r\n

A truly deserved benefit in South Carolina is for disabled Veterans.\u00a0\u00a0100% service connected disabled veterans<\/a>\u00a0may qualify as exempt from SC property taxes.\u00a0 That’s right no property taxes!\u00a0\u00a0Plus, Veterans<\/a> could use a VA home loan <\/a>for potentially a money down purchase as well.\u00a0 Learn more about\u00a0how this SC Property Tax Exemption works for Veterans<\/a>.<\/p>\r\n\r\n\r\n\r\n

VA Loan Occupancy Requirement<\/a><\/div>\r\n\r\n\r\n\r\n
Is Mortgage Interest Still a Deduction?<\/a><\/div>\r\n\r\n\r\n\r\n

Other South Carolina Taxes<\/h2>\r\n\r\n\r\n\r\n

Of course, its not all about real estate property taxes.\u00a0 There are other SC tax rates such as income tax, sales tax, and vehicle tax.\u00a0 Overall, South Carolina ranks well in these areas too.<\/p>\r\n\r\n\r\n\r\n

South Carolina\u00a0Income Tax<\/h3>\r\n\r\n\r\n\r\n

South Carolina income tax rates are based on levels of income.\u00a0\u00a0The rates\u00a0range from 0 – 7%.\u00a0 Like other states, the taxable\u00a0income is based on a function of the adjusted income\u00a0from the federal return.\u00a0 But, the highest SC\u00a0income tax rate is 7% which is pretty good compared to other states.\u00a0 Actually for 2018, Wallethub ranks South Carolina as the 10th lowest effective tax rate based on income<\/a>.<\/p>\r\n\r\n\r\n\r\n

\"south<\/figure>\r\n
Graphic Source: SC DOR<\/a><\/h6>\r\n\r\n\r\n\r\n

Have SC income tax related questions?\u00a0 Contact the South Carolina Department of Revenue<\/a>.<\/p>\r\n\r\n\r\n\r\n

Do You Qualify for a First Time Home Buyer Tax Credit?<\/a><\/div>\r\n\r\n\r\n\r\n

SC Vehicle Property\u00a0Tax<\/h3>\r\n\r\n\r\n\r\n

Although SC ranks as one of the lowest states for property taxes, according to Wallethub<\/a>, it is on the high side for vehicle taxes in relation to income.\u00a0 But, the taxes are pretty reasonable overall.\u00a0 If purchasing a vehicle in SC, there is a one-time\u00a0Infrastructure Maintenance Fee (IMF) rather than a sales tax.\u00a0 This fee is 5% of the price up to a maximum of $500 effective July 1, 2017.\u00a0 The IMF is in addition to applicable title and registration fees and annual personal property taxes.\u00a0\u00a0Additionally,\u00a0if relocating\u00a0to SC, residents are required to register vehicles within 45 days.\u00a0 Steps for new SC residents:<\/p>\r\n\r\n\r\n\r\n