When people fall in love with South Carolina, it’s usually for the beaches, golf courses and live oaks draped in Spanish moss. Smart homeowners understand the financial benefits as well — South Carolina’s tax structure is one of the most homeowner-friendly in the nation.
Whether you’re planning to make the Lowcountry your full-time home or searching for a vacation retreat, owning property in South Carolina comes with some financial perks.
Here is a breakdown of what makes South Carolina’s tax environment so appealing and why the numbers make just as much sense as the scenery.
Some of the Lowest Property Taxes in the Country
South Carolina has an average effective property tax rate of around 0.5%, one of the lowest in the United States. Compare that to high-tax states like:
- New Jersey: 2.21%
- Illinois: 2.05%
- New York: 1.4%
- California: 0.76%
That means a $1 million home in Bluffton or Hilton Head might have a yearly property tax bill of about $5,000, compared to $20,000 or more in the Northeast. For luxury properties in communities like Berkeley Hall, Belfair or Colleton River, that difference compounds dramatically over time.
Simply put: you’ll keep more of your money in your home and your bank account.
Lower Assessment for Full-Time Residents
South Carolina rewards homeowners who put down roots. If your home is your primary residence, you’ll pay property tax based on just 4% of its fair market value.
If it’s a secondary home, vacation property, or rental, the assessment is 6%. That 2% difference may sound small, but here’s what it really means:
- A $1,000,000 primary home is taxed on $40,000 of assessed value.
- The same property used as a vacation home is taxed on $60,000.
That 50% higher taxable value adds up fast.
To qualify for the 4% rate, you’ll need to establish South Carolina residency with a driver’s license, vehicle registration, and voting record.
Beaufort County: Local Tax Benefits for the Lowcountry
If you’re buying in Beaufort County (which includes Hilton Head, Beaufort, Bluffton and Okatie), you’re already in one of the most desirable (and surprisingly affordable) areas of the Southeast.
According to Better Numbers, local property taxes reflect that same balance of value and quality of life:
- Full-time residents: 4% assessment ratio
- Second-homeowners/non-residents: 6% assessment ratio
- Homestead Exemption: $50,000 reduction in taxable value for those age 65+, legally blind, or permanently disabled
Non-resident owners who rent out their property may also pay tax on furnishings or equipment (assessed separately at 10.5%), but even with those costs, the overall expense is often far lower than comparable markets in Florida or the Northeast.
No Estate, Inheritance, or Gift Tax
One of the most overlooked advantages of living and owning property in South Carolina is what doesn’t get taxed.
The state has no estate tax, no inheritance tax and no gift tax. That’s a huge difference from high-tax states like New York, Illinois, and Massachusetts, where estate taxes can reach up to 16%.
For homeowners building generational wealth or for those who are simply looking to protect what they’ve earned, South Carolina provides peace of mind along with palmetto trees.
Tax Perks for Retirees and Second-Home Owners
South Carolina has also become a haven for retirees, thanks to a mix of low property taxes, favorable income-tax deductions, and zero tax on Social Security income.
Retired residents can deduct up to $15,000 in other taxable income, and there are no local income taxes anywhere in the state.
For second-homeowners who split time between the Lowcountry and another state, that means you can enjoy year-round sunshine — and far less sticker shock when tax season rolls around.
Owning a Second Home Still Makes Financial Sense
Even if you don’t qualify for the 4% assessment ratio, South Carolina’s 6% rate for non-resident or vacation homes is still lower than what many states charge primary homeowners.
In Beaufort County SC, second-homeowners often find that carrying costs — including property tax, insurance, and HOA dues — are significantly lower than in comparable luxury markets like Naples, Charleston’s barrier islands, or coastal North Carolina, according to Realtor.com.
Plus, with strong rental demand, many owners offset expenses by renting seasonally, especially in resort communities managed by experienced professionals.
The Cost-of-Living Advantage
It’s not just property taxes — South Carolina’s overall cost of living is about 10–15% lower than the national average, according to Moneywise.com.
Housing, utilities, groceries, and healthcare all trend lower here, while the lifestyle feels anything but “discounted.” From golf memberships and boating to local dining and year-round recreation, the value for money is exceptional.
When you pair that with savings on property, income, and estate taxes, the Lowcountry becomes one of the most cost-effective — and enjoyable — places to call home in the U.S.
The Bottom Line: More Life, Less Tax
Whether you’re a full-time resident or seasonal visitor, South Carolina’s tax-friendly climate gives you more freedom to live the way you want.
- Primary homeowners benefit from the 4% assessment rate and homestead exemptions.
- Second-homeowners enjoy lower overall property taxes than nearly anywhere else on the East Coast.
- Everyone gains from the absence of estate and inheritance taxes and affordable cost of living.
It’s one of the many reasons people aren’t just vacationing in the Lowcountry; they’re staying.
At Delcher & Delcher, we know that buying a home is about more than location. It’s about the lifestyle and long-term value it provides. South Carolina’s tax structure makes owning property here a sound investment as well as a personal joy.
Whether you’re seeking a permanent move or a seasonal getaway, our team can help you find the perfect home in a community that fits your lifestyle and your financial goals.
