South Carolina Real Estate offers several tax benefits that need to be considered. The South Carolina Real Estate tax has been removed from the Proprty Tax Bills (details below). This went into effect in 2007 so the current tax bills reflect the decrease. The millage rates have decreased dramatically and this makes Fort Mill Real Estate, Tega Cay Real Estate and Lake Wylie Real Estate all that much more desirable.
NEW TAX BILL ACCELERATES THE DEMAND FOR SOUTH CAROLINA REAL ESTATE!!!!
House Bill 4449, Part I, Section 3 (Act No. 388)
Owner-Occupied Residential Property – Exemption from School Operating Millage
Code Section 12-37-220(B)(47) has been added to create a new exemption for owner-occupied residential property. For property tax years beginning after 2006, and to the extent not already exempt pursuant to Code Section 12-37-250 (the homestead exemption for taxpayers 65 and older, legally blind, or totally and permanently disabled), 100% of the fair market value of owner-occupied residential property that qualifies under Code Section 12-43-220(c) for the 4% assessment ratio is exempt from the school operating portion of millage. The exemption does not apply to millage imposed for general obligation debt.
Property exempt pursuant to this new exemption is considered taxable property for purposes of bonded indebtedness under Section 15, Article X of the South Carolina Constitution.
Effective Date: For property tax years beginning after 2006.
Remainder of SOUTH CAROLINA Taxes
Sales Taxes
State Sales Tax: 5% (prescription drugs exempt); 25 counties impose an additional 1% local option sales tax; two counties imposed a 2% sales tax. Seniors 85 and older pay 4%.
Gasoline Tax: 16 cents/gallon
Diesel Fuel Tax: 16 cents/gallon
Gasohol Tax: 16 cents/gallon
Cigarette Tax: 7 cents/pack of 20
Personal Income Taxes
Tax Rate Range: Low - 2.5%; High - 7%
Income Brackets: ** Lowest - $2,460; Highest - $12,300
Number of Brackets: 6
Personal Exemptions: * Single - $3,050; Married - $6,100; Dependents - $3,050
Standard Deduction: Single - $4,750; Married filing jointly - $9,500
Medical/Dental Deduction: Federal amount
Federal Income Tax Deduction: None
Retirement Income Taxes: Retirement income is taxed. Social Security exempt. Under age 65, $3,000 in pension income is exempt. At 65, the deduction is $10,000. After 65, the deduction if $15,000 (single)/$30,000 (joint).
Retired Military Pay: Retirees with 20 or more years of active duty can deduct up to $3,000 annually until age 65 and up to $10,000 per year after age 65. This deduction extends to the surviving spouse. Pension or retirement income received for time served in the National Guard or Reserve components is not taxable. Survivor benefits are taxed following federal tax rules.
Military Disability Retired Pay: Disability Portion - Length of Service Pay; Member on September 24, 1975 - No tax; Not Member on September 24, 1975 - Taxed, unless combat incurred. Retired Pay - Based solely on disability: Member on September 24, 1975 - No tax; Not Member on September 24, 1975 - Taxed, unless all pay based on disability and disability resulted from armed conflict, extra-hazardous service, simulated war, or an instrumentality of war.
VA Disability Dependency and Indemnity Compensation: Not subject to federal or state taxes
Military SBP/SSBP/RCSBP/RSFPP: Generally subject to state taxes for those states with income tax. Check with state department of revenue office.
Property Taxes
Property tax is assessed and collected by local governments. Both real and personal property are subject to tax. The market value of a legal residence and up to 5 acres of surrounding land is assessed at 4%. For homeowners 65 and older, the state's homestead exemption allows the first $50,000 of their property's fair market value to be exempt from local property taxes. South Carolina imposes a casual excise tax of 5% on the fair market value of all motor vehicles, motorcycles, boats, motors and airplanes transferred between individuals.
Inheritance and Estate Taxes
There is no inheritance tax and the estate tax is related to federal estate tax collection.
For further information, visit the South Carolina Department of Revenue site or 800-763-1295.
* State allows personal exemption or standard deductions as provided in the Internal Revenue Code.
More Information here: http://www.sctax.org/Publications/mov2sc.html
*All Information is subject to change!
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