Shopping for a new home in Charleston can be overwhelming. Even after you find your dream home there are many associated costs that sometimes go overlooked. Between the mortgage, insurance, closing and maintenance costs, it’s easy to forget that taxes play an important role in your budget. The good news is the average effective property tax rate in South Carolina is just 0.57%, 5th lowest in the country.
However, the Charleston area has seen rapid growth in property values in the past few years which, as a consequence, has lead to increased property taxes. A common misconception is that when property taxes go up, they go up for everyone in the county. This is not the case.
Instead of raising taxes county-wide, the tax burden is simply shifted to properties that have increased in value faster. Areas that lagged behind or lossed value will see a decrease (or no change) in the property tax rate. Properties are required to be reassessed every 5 years to determine full market value. An assessment ratio is then applied to the market value, 4% for primary residences and 6% for non-primary.
So for example, if the market value of a primary residence increased from $100,000 to $110,000, a 4% assessment ratio is applied which comes out to an assessed value of $4,400. Tax rates apply to this amount. Other factors that contribute to the final property tax rate include county taxes, independent city taxes, property tax credits/exemptions and city services.
Looking at the updated Charleston county tax rates and combined millage values, we can calculate what the estimated property taxes will be. In the example above, a homeowner under the age of 65 with a primary residence appraised at $300,000, located in the city of Charleston (TD 71) will pay an estimated $1,591.20 in property taxes.
Now let’s take a look at how much property taxes would be if that same $300,000 house (primary residence, under age 65) was located in these Charleston areas:
Town of Mt. Pleasant (TD 21) property taxes: $1,233.00
James Island PSD (TD 31) property taxes: $1,546.80
City of North Charleston (TD 43) property taxes: $1,755.00
Town of Summerville (TD 47) property taxes: $1,405.80
City of Folly Beach (TD 33, 37) property taxes: $1,236.00
Town of Sullivans Island (TD 23) property taxes: $1,288.20
Goose Creek (TD 42) property taxes: $1,008.00
If you would like to calculate your own specific estimated property taxes, you can check out the official Charleston County auditors tax estimator here.
You can also download a Microsoft excel sheet which has a list of tax rates/credits for each Charleston area. You can use the spreadsheet to input your own values and it will automatically calculate the estimated tax rate at the bottom. Use the example values as a guide when inputting your information. Charleston County Tax Calculator (Microsoft Excel Spreadsheet)
*The tax estimator and spreadsheet is in no way intended to be a final tax bill and Matt Anderson Properties in no way shall assume any liability for any error or inaccuracies. As always, if you have questions it is best to contact us directly: [email protected].
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