A Guide to Beaufort County, South Carolina Real Estate Taxes

For the uninitiated, Beaufort County, South Carolina real estate taxes can be confusing to navigate. What’s more, real estate taxes are a significant portion of the cost of owning your home. The type of property you have and how you use it plays a large role in how much tax you’ll pay due to Act 388 which I mentioned in this article. Most commonly for us in our firm, questions arise as we are adding property tax amounts to itemized deductions on a customer’s personal tax return and it seems like the amount they paid is too high. Generally, this is because they are being billed at the 6% Assessment Ratio when we know they can claim the 4% Assessment Ratio.

In this article, I will walk through how your property is taxed, using a property in the Town of Bluffton, South Carolina as an example. We will pay particular attention to the assessment ratio, otherwise known as “4% vs. 6%.”

How are real estate taxes calculated in Beaufort County, South Carolina?

The formula for calculating the property tax amount is: Taxable Value x Millage Rate

How is the taxable value calculated?

The taxable value is: (Lesser of Appraised Value or Capped Value) x Assessment Ratio

An example of a property tax bill is below which we will reference throughout this article.

How is the Appraised Value determined?

The appraised value is determined by an appraisal conducted by a qualified appraiser through the County Assessor’s office. Re-assessments are conducted county-wide every five years, the latest being in 2023. Additionally, each time a property is sold the property is re-assessed in the following year.

While somewhat dated at this point, this is a good guide to fundamentally understanding the assessment and re-assessment process.

What is the Capped Value and how is it calculated?

Appraised Values can only increase a maximum of 15% year-over-year. Therefore, if the Appraised Value increases by more than 15%, the Capped Value will increase by 15% when factored into the taxable value. The above-linked re-assessment guide also explains this concept very well.

What are millage rates?

Millage rates can be thought of the same as “tax rates.” Millage rates are adjusted each year by the various taxing authorities to meet budgetary requirements. During a re-assessment year, millage rates are also “rolled back” in order to neutralize the tax impact of increased property values.

What’s the difference between a 4% Assessment Ratio and a 6% Assessment Ratio?

4% Assessment Ratio homes are owner-occupied primary residences. 6% Assessment Ratio properties are rental properties or second homes. Additionally, due to Act 388, 6% properties are subject to School Operations taxes whereas 4% properties are not. As I will show below, this has a material impact on your property tax bill.

What is the impact on my tax bill of having a 4% Assessment Ratio vs. a 6% Assessment Ratio?

The above tax bill is an example of a 6% property within the Town of Bluffton. Below is what the property tax bill would be as a 4% property, as compared to a 6% property.

In the above example, for the same property, the tax bill would be $6,967 as a 4% property as opposed to $18,225 as a 6% property. The total difference in the tax bill is $11,258 and of that, $7,869 is attributable to the School Operations tax the 4% property doesn’t have to pay. Whether or not a property is a 4% property or a 6% property has a big impact on the real estate taxes the owner will pay.

What is the process for getting my property taxed at the 4% Assessment Ratio?

An application needs to be filed with the County Assessor, which can be done online here. The online form goes through the documents that are required to prove residency, as well as an area to upload your documentation. Applications can also be done in person at the Assessor’s Office

What time of the year are tax bills mailed?

Property tax bills are mailed in the October/November timeframe.

When are property tax payments due?

Property tax payments are due on or around (depending on weekends and holidays) January 15th of each year.

Conclusion

In closing, for those moving into the area from other parts of the country, the property taxes in Beaufort County can be confusing and overwhelming. What’s more, there is a large disparity between taxes on properties that are taxed at 4% vs. properties that are taxed at 6%. Hopefully this guide will serve as a resource for you and you’re armed with the knowledge you need to ensure your property is taxed accurately.