South Carolina is one of the most owner friendly states in the nation; low property taxes throughout the state make it easier for families and individuals to afford to own a home. The capital city of Columbia does leverage a tax on real property owned within the city, which includes a home or personal residence. Money collected is used for roads, law enforcement and other services and taxes are calculated based on the assessed value of the home.
South Carolina does offer some exemptions and discounts for some residents based on age and other factors and also offers a lower tax rate to primary home owners. Many South Carolina residents maintain a primary residence in a city like Columbia and have a second home or getaway at one of the state’s pristine beaches. A primary residence in Columbia will be taxed at a lower rate than a vacation or second home elsewhere in the state.
One of the reasons that Columbia has such a low tax rate is based on educational costs. In 2006, the state voted to shift the burden of paying for schools away from homeowners and direct these costs to commercial and business property owners instead. As a result, Columbia has one of the highest national tax rates for commercial property and one of the lowest rates for residential properties.
Property Taxes: How Does Columbia Measure Up?
Based on median home values and property tax rates provided by a recent national study done by the non-profit Lincoln Institute, here’s how Columbia, South Carolina compares with other cities across the nation.
Columbia, SC
The effective property tax rate for Richland County, where Columbia is located is .57 percent, one of the lowest rates in the nation. While this rate is low for the United States, the City of Columbia and Richland County actually have a relatively high rate of property taxation for the state as a whole. According to the South Carolina Department of Commerce, Columbia is second only to rural Newberry County for taxation on personal property.
Charlotte, NC
Columbia’s closest same size neighbor to the north, Charlotte, North Carolina, is located in Mecklenberg County and has a slightly higher rate of taxation on personal property. At about .1.062 percent, the home of the Panthers and the Hornets comes in higher than Columbia when it comes to property taxes, but offers a similar median home cost.
Jacksonville, FL
Just a few hours to the south, Jacksonville is similar in size and scope to Columbia, South Carolina, but residents can expect to pay a little more for property taxes. Jacksonville’s effective median tax rate is almost double that of Columbia and comes in at about 1.28 percent, according to the Lincoln Institute.
Boulder, CO
The elevation may be higher in Boulder, but taxes are only slightly increased over what a resident of Columbia, South Carolina could expect to pay. According to figures from the Fiscal Times, the median tax rate for a home in the city is .61 percent. Home prices are on the rise in Boulder, according to the Denver Post, which could result in an increase in property taxes in coming years.
Philadelphia, PA
If you live in the City of Brotherly Love, you’ll enjoy culture, history, and amazing cheese steaks –but you’ll pay a bundle in property taxes to do so. The Lincoln Institute study ranked Philadelphia effective median property taxes as the second highest in the nation, surpassed only by Detroit Michigan. Philadelphia residents can expect to pay a whopping 2.6 percent property tax rate to live in the city.
Dallas, TX
Everything may be bigger in Texas – including the taxes. A resident of Dallas can expect to pay a median tax rate of 2.34 percent to live within city limits. The Office of the Comptroller in Texas cites the cost of maintaining city roads, schools and law enforcement as key components of the high property taxes in this area.
Mesa, AZ
South Carolina has long appealed to snow birds and retirees, thanks to the warm climate and low tax rates. Arizona offers a similar appeal, and the city of Mesa offers many of the same amenities and comforts as Columbia, SC. A home in Mesa has an effective median tax rate of about .51 percent, making it a great place to live if you want to enjoy warm weather and save on your property taxes, too.
Honolulu, HI
Cost of living is notably high in Hawaii, but property taxes are some of the lowest in the nation in this sunny, welcoming state. If you want to live in this island paradise, you’ll pay a lot more for your food and consumer goods and can expect a high income tax rate, but your property tax rate will be surprisingly low. Expect to pay just .28 percent as your median tax rate if you choose a home in Honolulu.
While your property tax is deductible, according to Movoto’s real estate tax experts, it still represents a part of your monthly mortgage payment and can impact the amount of money you can afford to spend on your home. Considering the taxes you’ll have to pay as part of your monthly budget can help you hone in on the correct price range for your next home.
2 Point Highlight
One of the reasons that Columbia has such a low tax rate is based on educational costs. In 2006, the state voted to shift the burden of paying for schools away from homeowners and direct these costs to commercial and business property owners instead.
South Carolina has long appealed to snow birds and retirees, thanks to the warm climate and low tax rates. Arizona offers a similar appeal, and the city of Mesa offers many of the same amenities and comforts as Columbia, SC.
While your property tax is deductible, according to Movoto’s real estate tax experts, it still represents a part of your monthly mortgage payment and can impact the amount of money you can afford to spend on your home.
