In South Carolina you will enjoy an average effective tax rate of just 0.57% , the Fifth-Lowest property tax rate in the United States. Whether you intend to live year-round or just visit, you will almost certainly save on your annual tax bill.
South Carolina residents enjoy property taxes that are almost comically “cheap” in comparison to what they were paying up North. Full-time South Carolina residents enjoy a 4% assessment rate. Secondary homeowners (part-time residents, vacation home investors, etc.) pay a slightly higher 6%. Taxes are calculated on the assessed value of your home and your district’s (Horry County) millage rate.
For example, if an owner-occupied primary residence (4%) has a value of $100,000 with a millage rate of 200 mills, the annual Horry County Property Tax would only be about $800. When purchasing a home in Myrtle Beach you must fill out the Legal Resident Application to qualify for the 4% primary residence tax rate in Horry County. Remember - This could save you thousands of dollars!
Primary Residence - 4% Rate
$250,000 Fair Market Value
x 4% (Primary Residence Tax Rate)
= $10,000 (Assessed Value)
x .2415 (2023 Horry County .1754 + Myrtle Beach City .0661 millage rate)
Secondary Residence - 6% Rate
$250,000 Fair Market Value
x 6% (Primary Residence Tax Rate)
= $15,000 (Assessed Value)
x .2415 (2023 Horry County .1754 + Myrtle Beach City .0661 millage rate)
Are you 65 or older, permanently and totally disabled, or legally blind? If you've enjoyed South Carolina residency for at least one year and meet any of the aforementioned criteria, the first $50,000 of your home's fair market value will be exempted from your total property tax assessment under the homestead exemption.
Myrtle Beach sales tax is currently set at 9%. This is a combination of the South Carolina State sales tax of 6%, Horry County Standard tax of 1%, Horry County Capital Projects tax of 1%, and Myrtle Beach tax of 1%. Combined with an already low cost-of-living, this really gives your dollar "more mileage". Prescription medicine, dental prosthetics, electricity, natural gas, and fuel oil are all exempted from state sales taxes.
Additional taxes may be imposed at the county/township level, i.e. the food and lodging tax in Myrtle Beach (Accommodations Sales Tax in Myrtle Beach SC). This tax shifts some of the burden for capital improvements and infrastructure management to Myrtle Beach vacationers. Remember to thank them for their business!
South Carolina has a simplified income tax structure that essentially mirrors federal norms. South Carolina recognizes most of the exemptions on your federal tax return, with rates from 0% to 6.5%. Income brackets are adjusted annually to reflect inflation.
What is a 1031 Tax Exchange? If you have property that you could sell for a considerable profit you might consider the tax benefits of a 1031 Tax Exchange. This Tax Free Real Estate Exchange really isn't tax free, just tax deferred. An investment property or vacation home that has a rental record may qualify.
The property must be a "like-kind" exchange. This includes exchanging a condo for an office building or residential rental home for an apartment building. This is an excellent way for investors to "Move Up" to a property that is more expensive (Asset Accumulation), leveraging the additional cost with the tax savings.
I have experience working with out of state buyers using the 1031 Tax locally to your advantage.
Let me be your guide to purchasing a home in Myrtle Beach. Please refer to my Buying a Home page for greater detail about my process of helping you purchase the perfect home in the Myrtle Beach area at the best possible price.
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