With low property taxes for individual homeowners and a rich history and culture, Charleston SC has plenty to offer buyers. While the city of Charleston does charge property tax, the rate is low when compared to other cities of a similar size and there are exemptions and breaks for homeowners.
Like all towns in South Carolina, Charleston levies taxes on personal property, including homes; these taxes are used to pay for law enforcement, roads and other services. Taxes in Charleston are figured using the assessed value of the home. The status of the residence matters; there are many second or vacation homes in Charleston County and primary residences are taxed at a lower rate than vacation properties.
In 2006, South Carolina lawmakers voted to change the way schools in the state are funded. Public schools were originally funded in part through individual property taxes; the new laws shifted the responsibility of paying for schools to commercial property owners. Charleston has a much lower tax rate than many cities of similar size, thanks to the increased obligation for business owners in the state.
Property Taxes: How Does Charleston Compare?
Recent research from the nonprofit Lincoln Institute compared the effective tax rates for a number of major cities across the US. This is how Charleston South Carolina measures up to other cities across the nation.
Charleston, SC
At just .51 percent, Charleston County has a low effective property tax rate when compared with many other cities of the same size. The rate of taxation is moderate for South Carolina but low for the rest of the nation; Charleston has a lower property tax than the state’s capital city, Columbia and comes in at the middle of the range for cities in South Carolina.
Las Vegas NV
Charleston is a popular vacation destination – like Las Vegas to the far West. These states have more in common than you think, including a relatively low tax rate on homes and primary residences. The effective tax rate in Las Vegas is just over one percent, making it higher than Charleston, but still low when compared to the rest of the country.
Manchester NH
With no state or local sales taxes and no taxation on personal income, Manchester NH sounds like a haven for those who wish to avoid taxes. This small city is not a great choice if you are interested in saving on your property taxes, though. Lawmakers decided to shift the burden for paying for key services to property owners and pushed Manchester’s effective tax rate to become one of the highest in the nation. You’ll pay 1.616 percent – high for much of the nation, but still lower than the tax rate in other New Hampshire cities.
Billings, MT
You can expect to pay relatively low taxes when you move to Billings, but not quite as low as you’d pay in Charleston. At just under .9 percent, Billings is a bargain when compared to the rest of the nation. Prospective residents should note that the town does have an additional tax for new wells in the first 18 months of use, which could increase property tax burdens for those building new homes.
Orlando, FL
The country’s most popular vacation destination is also reasonably homeowner friendly; tax rates in Orlando are relatively low, but have been trending up in recent years. The Orlando metro area spans several counties and all have similar effective tax rates of approximately 1.13 percent. Because of the proximity to Disney World and other popular vacation destinations, Orlando is slightly higher than other Florida cities and Charleston SC, but still affordable when compared to other major destinations.
Cheyenne, WY
This growing city has one of the lowest effective tax rates in the nation, at about .62 percent, Cheyenne is just above Charleston as far as property taxes are concerned.
Detroit, MI
Michigan has some of the highest property tax rates in the nation, and Detroit is no exception; the city has a whopping 2.6 percent effective rate for primary residences and private homes. Despite collecting some of the highest property taxes in the nation, the city is fighting an uphill battle to see a resurgence in home prices and values.
According to Movoto’s real estate tax experts, your property tax is deductible, but since it will be included when your monthly mortgage payment is calculated. Knowing how much you can truly afford to spend each month, including both your mortgage payment and property taxes can help you zero in on the right property and price point for you.
2 Point Highlight
The country’s most popular vacation destination is also reasonably homeowner friendly; tax rates in Orlando are relatively low, but have been trending up in recent years. The Orlando metro area spans several counties and all have similar effective tax rates of approximately 1.13 percent.
At just .51 percent, Charleston County has a low effective property tax rate when compared with many other cities of the same size. The rate of taxation is moderate for South Carolina but low for the rest of the nation;
