The Homestead Exemption in South Carolina

South Carolina's owner-occupied relief has three parts. (1) A primary residence and up to 5 contiguous acres owned and occupied by the owner is taxed at a 4% assessment ratio (second homes and most other property: 6%) once the county assessor approves an application. (2) Owner-occupied residential property is exempt from all property taxes for school operating purposes (not from millage for debt repayment). (3) The Homestead Exemption fully exempts taxes on the first $50,000 of fair market value of the legal residence for homeowners who are 65 or older, totally and permanently disabled, or legally blind. None of these apply to second or vacation homes. For tax year 2026 the state also temporarily authorized an additional homestead exemption for certain recipients, determined by the county auditor.

Apply for the 4% legal residence ratio with the county assessor; the owner must certify that the home is the legal residence and domicile and that no household member claims residency elsewhere or the 4% ratio on another home. No further application is needed while the property keeps qualifying. Apply for the Homestead Exemption at the county auditor's office (and, if applicable, the municipality) with proof: a birth certificate or SC driver's license for age, certification from the state or federal agency for disability, or certification from a licensed ophthalmologist for blindness (a trust agreement if the home is held in trust). The homestead exemption continues without reapplying unless the owner moves or the qualifying owner dies and someone else at the residence is eligible; changes affecting eligibility must be reported to the auditor. Legal residence approval is required before an exemption is granted on real estate.

The 4% residential ratio generally must be applied for with the county assessor before the first penalty date for taxes due (January 16); the local taxing authority may extend this for reasonable cause. For the Homestead Exemption, failure to apply waives the exemption for that year, but an applicant who could have qualified in the prior tax year may be allowed the exemption for the immediately preceding year as well.

Real property is reappraised countywide on a 5-year cycle. An increase in fair market value of any parcel from a countywide reassessment is limited to 15% within a 5-year period. The cap does not apply in the year an assessable transfer of interest (such as a sale) is first taxed, or to the value of new improvements or additions in the year they are first taxed.