What's the actual dollar difference between South Carolina's 4% and 6% property tax rates?

On a $500,000 home at a typical 250-mill rate, a primary residence (4% assessment) runs about $3,500 to $4,000 a year. The same home as a second home or rental (6% assessment) runs $8,500 or more, partly because it also loses the school operating tax exemption.

How do I qualify for South Carolina's 4% primary residence property tax rate?

You must occupy the home as your legal residence and apply with your County Assessor within 30 to 60 days of moving in, and no later than January 15 of the following tax year. Missing the deadline defaults you to the 6% non-owner-occupied rate.

Is there a property tax break for South Carolina homeowners 65 and older?

Yes. The Homestead Exemption removes the first $50,000 of a home's fair market value from all property taxes for owners 65 or older, or totally disabled, through a one-time application with the County Auditor.

Lake Murray

Lake Murray Property Taxes: The 4% vs. 6% Question

South Carolina taxes a home based on how you use it, not just what it's worth. Live in it as your primary residence and you're assessed at 4%. Use it as a second home, rental, or investment and you're assessed at 6%, which on a $500,000 home is roughly a $5,000 difference every year.

Written by Lauren Lux, REALTOR® with Coldwell Banker Realty. Last updated August 2026.

What's the actual dollar difference between 4% and 6%?

On a $500,000 home at a typical 250-mill rate, a primary residence runs about $3,500-$4,000 a year. The same home taxed at 6% runs $8,500 or more, because it also loses the school operating tax exemption that comes with the 4% rate. If you're evaluating a Lake Murray property as an investment, build the 6% number into your cash flow projections, not the 4% one.

How do I qualify for the 4% rate?

You have to occupy the home as your legal residence and apply with your County Assessor (Richland, Lexington, Saluda, or Newberry, depending on which side of the lake you're on) within 30 to 60 days of moving in, depending on the county. Miss the window, specifically the January 15 deadline, and you default to the 6% rate until you successfully apply.

Is there a tax break for buyers 65 and older?

Yes. The Homestead Exemption removes the first $50,000 of your home's fair market value from all property taxes if you're 65 or older, or totally disabled. It's a one-time application through your County Auditor's office.

Does South Carolina have a state estate tax?

No. South Carolina has no state estate or inheritance tax, which is one reason it's a common retirement and second-home destination for buyers relocating from states that do.

How does South Carolina's cost of living compare overall?

Roughly 5-7% below the national average as of 2026, with the biggest gap in housing (16-25% below national) and a smaller one in transportation (about 7% below). Utilities run slightly above the national average, 2-4% higher, largely because of heavy air conditioning use in summer.

What about income tax on investment sales?

South Carolina offers a 44% deduction on long-term capital gains, which lowers the effective state tax burden on an investment property sale compared to states without that deduction. This isn't a substitute for advice from a CPA or tax attorney, just useful context while you're running numbers.

This is general information, not tax or legal advice. Confirm your specific numbers with a CPA or your County Assessor's office.

Want the real numbers run for a specific property? Send me the address and I'll break down what you'd actually pay. Call or text (803) 569-7595.

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Send me the address and I'll break down what you'd actually pay.

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