South Carolina Property Tax 2026: 4% Legal Residence Ratio, Act 388 & the 15% Reassessment Cap

How South Carolina Property Tax Works in 2026

South Carolina levies no state-level property tax — it's administered and collected entirely by local governments (counties, municipalities, school districts, and special purpose districts), with technical assistance from the South Carolina Department of Revenue (SCDOR). The statewide average effective rate is approximately 0.49% of home value according to the Tax Foundation (2024 data), the 5th lowest among the 50 states.

Two features drive that low effective rate. First, South Carolina uses a dual assessment ratio system: an owner-occupied primary residence (called a "legal residence") is assessed at only 4% of fair market value, while second homes, rental property, most commercial property, and vehicles are assessed at 6%. Second, Act 388, passed in 2006, exempts owner-occupied legal residences from the school operating portion of the property tax bill entirely (funded instead by a statewide sales tax increase), and caps how much a property's assessed value can rise between reassessments. This guide covers the 4%/6% assessment ratio system, Act 388's school exemption and 15% reassessment cap, the $50,000 senior/disabled homestead exemption, county rate comparison, and a worked example for a $300,000 home.

The 4% vs 6% Assessment Ratio: Why Your Primary Home Is Taxed Less

South Carolina's biggest property tax lever is its dual assessment ratio system. A taxpayer's single, owner-occupied legal residence — the home they actually live in as their primary residence — is assessed at only 4% of its fair market value. Nearly everything else, including second homes, vacation property, rental property, most commercial and business property, and personal vehicles, is assessed at 6%.

Example: Converting Market Value to Assessed Value

A legal residence with a fair market value of $350,000: $350,000 × 4% = $14,000 assessed value. The same $350,000 property, if it were a second home or rental instead of a primary residence, would be assessed at $350,000 × 6% = $21,000 — exactly 50% higher, before any millage rate is even applied.

Applying for the 4% Ratio

The 4% legal residence ratio isn't automatic — owners must file an application (typically a one-time filing, unless ownership or occupancy status changes) with their county assessor certifying the property is their primary, owner-occupied residence. Failing to file, or owning a home you don't actually occupy as your primary residence, means the property defaults to the 6% ratio.

Act 388: The School Tax Exemption and the 15% Reassessment Cap

South Carolina's Act 388, passed in 2006 (sometimes called the "point of sale" statute), reshaped how owner-occupied homes are taxed in two major ways.

School Operating Tax Exemption

Act 388 exempts owner-occupied legal residences from the school operating portion of the property tax bill entirely. This exemption doesn't apply to school bond/debt service millage, which legal residences still pay. To offset the lost school operating revenue, the law simultaneously raised the state sales tax rate to 6%, shifting a meaningful share of school funding from property tax onto sales tax statewide.

The 15%-Over-5-Years Reassessment Cap

Under the point of sale statute, a property's assessed value can only increase by up to 15% over a five-year countywide reassessment cycle, smoothing out the tax impact of fast-appreciating markets for existing owners. However, this cap is reset whenever there's an "assessable transfer of interest" — most commonly a sale — at which point the property is reassessed to full current fair market value for the new owner. This creates a similar dynamic to California's Proposition 13: long-term owners in fast-appreciating areas (like coastal Charleston or Horry County) can see meaningfully lower effective rates than a recent buyer of an equivalent home next door.

Countywide Reassessment Cycle

South Carolina counties must conduct a countywide reassessment at least once every five years, at which point the 15% cap (and any assessable transfers that occurred during the cycle) get reconciled against updated market values.

Who Qualifies for the $50,000 Senior Homestead Exemption?

Beyond the 4% ratio and Act 388's school exemption, South Carolina offers a substantial additional exemption for older, disabled, and blind homeowners under the Homestead Exemption Program (SC Code §12-37-250).

Eligibility

• At least one owner must be 65 years of age or older as of December 31 preceding the tax year, OR be classified as totally and permanently disabled by a state or federal agency, OR be legally blind
• The applicant must have been a South Carolina resident for at least one year
• The property must be the applicant's legal (primary) residence, held in fee simple, as a life estate, or by a trust of which the applicant is a beneficiary

How the Exemption Works

The first $50,000 of the legal residence's fair market value is exempt from county, municipal, school, and special assessment property taxes — this stacks on top of the 4% assessment ratio and the Act 388 school operating exemption, making South Carolina's effective senior property tax burden among the lowest in the Southeast.

Applying

File with your county auditor (not the assessor or treasurer) by July 15 of the application year. The exemption generally remains in place in subsequent years without refiling, unless ownership, occupancy, or eligibility status changes.

County Property Tax Rates Compared

Because South Carolina's 46 counties, along with overlapping municipalities and special districts, each set millage rates independently, effective rates vary across the state even under the uniform 4%/6% ratio system and Act 388 protections. The figures below are Tax Foundation effective rates (median property taxes paid as a share of median home value, 2024 five-year estimates) rather than an official per-county ranking.

Approximate Effective Property Tax Rates — Major South Carolina Counties (2024)

Why Horry County Runs Lower

Horry County's effective rate (0.38%) is slightly below Charleston's (0.40%) and well below Greenville's (0.51%) in the Tax Foundation figures. County rates reflect local millage, home values, and the mix of 4% and 6% property; this guide does not isolate which factor drives the gap.

Worked Example: $300,000 Home in Charleston County

This example walks through South Carolina's full calculation chain — the 4% legal residence ratio, Act 388's school exemption baked into the local millage, and the senior exemption if applicable — for an illustrative $300,000 home in Charleston County.

Step 1: Apply the 4% Legal Residence Assessment Ratio

$300,000 fair market value × 4% = $12,000 assessed (taxable) value — assuming the owner has filed for legal residence status.

Step 2: Apply an Approximate Effective Rate Cross-Check

Using Charleston County's effective rate of 0.40% (Tax Foundation, 2024 data) applied directly to the $300,000 market value as a quick cross-check (this figure already reflects the 4% ratio, the Act 388 school exemption, and typical local millage together):

$300,000 × 0.40% ≈ $1,200 per year

Step 3: Apply the Senior Homestead Exemption, If Eligible

If the owner qualifies for the $50,000 senior/disabled/blind homestead exemption, the taxable fair market value for the exemption calculation drops to $250,000. Applying the same 0.40% effective rate: $250,000 × 0.40% ≈ $1,000 per year — roughly $200 in annual savings.

Step 4: Compare to a Non-Owner-Occupied Property

The same $300,000 property, if it were a second home or rental instead (6% ratio, no Act 388 school exemption), would face a materially higher effective rate, since it is assessed at 6% rather than 4% and also pays the school operating millage that legal residences skip. This is a key consideration for anyone buying investment or vacation property in South Carolina.