What Are The Property Taxes In Charleston, SC?

Benjamin Franklin once said, “In this world, nothing is certain except death and taxes.” When it comes to buying a home, taxes are one of the costs to include in your budget, especially property tax. Property tax is a tax that goes to local governments based on your home’s assessed value. Property tax in SC varies depending on location, and Charleston has its own set of rates and exemptions that you should be aware of before purchasing a home. In this guide, we'll break down everything you need to know about property taxes in Charleston, SC.

What To Know About Property Tax & Exemptions in Charleston

Property taxes in Charleston, SC, are generally lower than the national average, which can make living here an attractive option for homebuyers. In Charleston County, the average effective property tax rate is around 0.51% of your home's assessed value. That’s much lower than what you might find in many other parts of the country and the state itself. The assessed value for primary residences is 4% of the home's fair market value, which is then multiplied by the tax rate minus any deductions to calculate the total property tax bill.

SC Property Tax Formula:

Fair Market Value of Your House or Land X the Assessment Ratio X the Millage Rate - the Potential Deduction = Taxes Due

Key Formula Terms:

Fair Market Value – The price your property would sell for in the open market.

• Assessment Ratio – The percent of your property’s value which is subject to taxes.
• Millage Rate – The number of mills imposed to meet the budget of a school district, county, city or other political subdivision. One mill equals 1/1000 of a dollar. If the tax rate is 265 mills, multiply .265 by the assessed value to determine the amount of property tax due.

Exemptions That May Benefit Homeowners

Charleston offers several property tax exemptions that can significantly reduce your tax burden. One of the most well-known is the Homestead Exemption, designed for certain groups of homeowners, including retirees and individuals with disabilities. To qualify for this exemption, you must meet the following criteria:

• Be at least 65 years old, completely disabled, or legally blind.

• Own and occupy the property as your primary residence.

• Be a resident of South Carolina for at least one year before applying.

If you qualify for the Homestead Exemption in SC, the first $50,000 of your home's fair market value is exempt from local property taxes. This can translate into significant annual savings.

Beyond the Homestead Exemption, Charleston County also offers other tax breaks that you may qualify for, such as:

• Agricultural Use Exemption: For properties being used as farmland.

• Legal Residence Exemption: This reduces the tax ratio for owner-occupied homes from 6% to 4%, which is particularly beneficial if you live in the home you own.

• Military Exemption: Protects active duty military members from paying property taxes on a home they own while stationed in SC.

You can check with the Charleston County Assessor’s Office for a full list of available exemptions and determine which might apply to you.

Flood Insurance in Charleston, SC

One important aspect of homeownership in Charleston is flood insurance. Given Charleston's coastal location, flood insurance is not just a recommendation — it’s often a requirement. Many areas in Charleston are in flood-prone zones, so it's crucial to understand the need for flood insurance and its costs.

If you are buying a home in a designated high-risk flood zone, your mortgage lender will typically require flood insurance. However, even if your home is not in a high-risk zone, it’s wise to consider purchasing flood insurance, as flooding can occur in low- to moderate-risk areas as well.

Flood insurance in Charleston, SC, is available through the National Flood Insurance Program (NFIP), which provides coverage for homeowners, renters, and business owners. The cost of flood insurance can vary depending on factors like the property's location, structure, and elevation. Keep in mind that flood insurance policies have a 30-day waiting period, so it’s essential to secure coverage well in advance of hurricane season.

Why Living in Charleston Might Be Right for You & Your Family!

Property taxes and flood insurance are just part of the picture when considering living in Charleston, SC. The city boasts a rich history, stunning coastal views, a bustling food scene, and a strong sense of community. These features make it one of the most desirable places to live in South Carolina.

For those interested in new homes in Charleston, SC, Dream Finders Homes offers a variety of beautiful communities that cater to different lifestyles and preferences. Whether you're drawn to the vibrant downtown area or the peaceful suburbs, Dream Finders Homes has options to suit your needs. We build in some of the most desirable neighborhoods, ensuring that you’ll find not just a house, but a place you can truly call home.

Charleston is known for its great schools, family-friendly activities, and unique blend of Southern charm and modern convenience. The area continues to grow, attracting individuals and families looking for both a comfortable lifestyle and a sound financial investment. Learn more about why you should consider a move to this eclectic city.

Connect with Dream Finders Today!

Charleston, SC property tax rates are generally favorable, and there are several exemptions available that can reduce your tax burden. The addition of flood insurance requirements is something to factor in, but the benefits of living in such a vibrant and scenic city often outweigh the costs. From the historic downtown to the stunning beaches, Charleston offers a lifestyle that’s hard to beat.

As one of the top home builders in Charleston, SC, Dream Finders Homes is happy to share more information about our new communities here and help you find the perfect home. Connect with us today, and we'll guide you through every step of the process! No matter what questions you have, our team is dedicated to making your home-buying experience as seamless as possible.