Property taxes can be confusing, and in South Carolina, there are plenty of misconceptions floating around. Some homeowners overpay because they believe they have no way to lower their taxes, while others assume they’re exempt when they’re not. To help clear the air, let’s debunk some of the most common property tax myths in South Carolina.
Myth #1: South Carolina Has High Property Taxes
The Truth: South Carolina actually has some of the lowest property tax rates in the country.
Compared to other states, South Carolina ranks among the most affordable when it comes to property taxes. The state’s average effective property tax rate is around 0.57%, significantly lower than the national average of 0.99%. This means homeowners in South Carolina generally pay less in property taxes than those in most other states.
Myth #2: Property Taxes Automatically Increase Every Year
The Truth: Property taxes do not necessarily rise annually unless the property’s assessed value increases or local tax rates change.
South Carolina law limits how much a property’s assessed value can increase. Even if your home’s market value goes up, your taxable assessment cannot increase by more than 15% over a five-year period (unless there are major improvements to the property). Additionally, local governments must follow legal processes before raising tax rates, and they cannot do so arbitrarily.
Myth #3: Senior Citizens Do Not Have to Pay Property Taxes
The Truth: Seniors still pay property taxes, but they may qualify for significant reductions.
South Carolina offers a Homestead Exemption for residents 65 and older, permanently disabled, or legally blind. This exemption eliminates property taxes on the first $50,000 of a home’s fair market value, providing major tax relief for qualifying seniors. However, they are still responsible for taxes on any value beyond that threshold.
Myth #4: If You Don’t Agree with Your Property Tax Bill, You Have No Recourse
The Truth: Homeowners can appeal their property tax assessments if they believe they are incorrect.
If you think your home has been over-assessed, you can file an appeal with your county assessor’s office. You typically have 90 days from receiving your tax notice to contest the valuation. Providing evidence, such as recent comparable sales or an independent appraisal, can help you win an appeal and reduce your tax burden.
Myth #5: Rental and Investment Properties Are Taxed at the Same Rate as Primary Residences
The Truth: Non-owner-occupied properties (rental or investment properties) are taxed at a higher rate than primary residences.
South Carolina uses a two-tier tax rate system:
Primary residences: Taxed at an assessed value of 4%
Rental and commercial properties: Taxed at an assessed value of 6%
This means landlords and investors generally pay more in property taxes than homeowners who live in their property full-time.
Myth #6: Paying Property Taxes Late Has No Serious Consequences
The Truth: Failure to pay property taxes on time can lead to penalties, interest, and even foreclosure.
South Carolina takes property tax delinquency seriously. If you fail to pay your taxes by the due date, you will incur penalties and interest. If taxes remain unpaid for too long, the county can place a lien on your property or auction it at a tax sale, where it may be sold to recover the unpaid amount. To avoid this, always pay your property taxes on time or contact your local tax office to discuss payment options.
Final Thoughts
Understanding the truth behind property tax myths can save you money and unnecessary stress. South Carolina’s property tax system is designed to be fair, with protections in place to prevent excessive hikes and relief programs for eligible residents. If you have concerns about your property taxes, always consult with your local tax office or a professional to ensure you’re making informed decisions.
By staying informed, you can take advantage of available tax breaks and avoid costly misconceptions. If you need expert guidance, consider reaching out to property tax consultants for South Carolina who can help you navigate exemptions, appeals, and assessments to ensure you're paying only what you owe.