With over 30 years experience selling resort homes with active pre-retirees, retirees and just regular people, I have a pretty good idea what questions people generally ask when looking at property. "What are the taxes?" This, by far, is question number ONE!
There is a reason people are coming to the Palmetto State in droves! The current tax system is one of the lowest per capita tax rates in the country. The government wants the system to be competitive for individuals and companies. Perhaps this is why Boeing has a huge plant in South Carolina and Volvo has made a huge investment here. And don't forget about BMW in South Carolina. Just up the road from my office lies Del Webb's Sun City. There are 7,000 home there. That's 14,000 people! 55 and old, 14,000 people! I think I am seeing a trend!
The Reason for people moving to South Carolina
To begin with there is no tax on any property sold in another state. South Carolina also has no intangible tax. This is a biggie - South Carolina does not tax Social Security Benefits. Your disability income is deductible and after age 65 you would be eligible for a deduction of up to $15,000. South Carolina does not have an Estate Tax or Gift Tax. The residents in South Carolina receive a credit of $210 if both spouses work and they receive a $300 credit each year for a nursing home or home care.
Income Tax and Property Taxes
Tax rates for Federal Taxable income range from 3% to 7%. Regarding property taxes, if you are a legal resident of South Carolina your property would be assessed at 4%. Once they have figured the assessed rate the local government applies a millage rate to that number to find out the tax. I always tell my clients that for a $500,000 home in Beaufort county the property tax is about $2,500-$3,700. A $1,000,000 is about $6,000 or so. This works out to about 1/2% to 3/4% of the purchase price of the home. I am only speaking about Primary residences. If your property is a second home and you do not live in South Carolina the property is assessed at 6%. This works out to be 1 1/4% to 1 1/2% of the purchase price. Registering your car in South Carolina and getting a SC drivers license is usually the signal that you live in SC. Property tax bills are usually mailed in October and due by January 15th.
If you have established a one year residency in your home and you are 65 or older, blind or disabled, you are eligible for a homestead exemption of $50,000 from the value of your home.
Vehicle Property Tax
Personal property taxes are levied on cars, motorcycles, RV's, boats and airplanes. If you own a car valued at $30,000 your tax would be ABOUT $520.00. The address to get your SC license is 15 Sheridan Park Cir, Bluffton, SC 29910. The Beaufort County Government Center is located at 4819 Bluffton Parkway Bluffton, 29910.
You basically have 45 days to register your car when you move here. You must register your car in SC if you live here for more than 180. As I said above, the car registration process is proof that you are a full time resident. South Carolina also taxes a gallon of gas at the pump .16 cents and is included in the price per gallon.
The sales tax in South Carolina is 6%.
I think that about covers it. If you have additional question you can click on the links below.
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