Getting the best tax rate on your property taxes starts with this information.
How can you get the best tax rate possible on your primary residence? It’s important to know that there are three types of tax rates for your residence:
1. Investment rate: Every time a property changes hands, the tax office assigns it an investment rate of 6%. This rate is for things like second homes, rental properties, vacant lots, and anything else that’s not a primary residence.
2. Primary residence rate: You can only have one of these, and it drops your rate from 6% to 4% and takes off the school operating part of the millage rate. When you do this, you can get about a 50% tax cut.
3. Homestead exemption: A lot of people get this and primary residence mixed up. While the primary residence is open to anyone, the homestead exemption carries a few qualification requirements. First, your property has to be your primary residence. Second, you have to be 65 years old or older. Third, you need to be a resident of South Carolina for at least one year. If you meet these requirements and your house is assessed at, say, $200,000, the tax office will deduct the first $50,000 in value and then apply the primary residence rate of 4% to remove the school operation part of the millage and lower your rate even more.
If you’re curious whether or not you’re being billed the correct tax rate for your home or if there’s anything else I can help you with, don’t hesitate to reach out to me. I’d love to hear from you.