South Carolina Homestead Exemption

Quick Facts

• What the program does: The South Carolina Homestead Exemption removes $50,000 of taxable value from the county property tax roll on an eligible homeowner’s primary residence, lowering the bill for county, municipal, school district, and other local levies that rely on assessed value. The exemption is embedded in the property tax bill once approved, so savings arrive automatically year after year.
• Who can benefit: South Carolinians who are age 65 or older, totally and permanently disabled, or legally blind, and who have owned and occupied their home as their legal residence for at least one year before December 31 of the year before they claim the exemption.
• Why it matters: Property tax bills can climb sharply as reassessment cycles reset values. The exemption locks in a $50,000 reduction on the fair market value used for tax calculations, insulating retirees and residents on fixed incomes from being priced out of their homes. It also stacks with other relief like the 4% legal residence assessment ratio and local option credits.
• How the money shows up: There is no check; instead, the exemption lowers the taxable value on the property tax bill so that the treasurer and mortgage servicer collect less. For a $200,000 home in a county with a 0.30 composite mill rate, the exemption can cut roughly $150 off the annual bill. Counties mail approval letters and mark future tax bills with a homestead code so you can verify the discount is applied.

Program Overview

South Carolina’s property tax system starts by valuing a home at its fair market value, multiplying that value by the 4% assessment ratio for owner-occupied homes, and then applying the county’s millage rates to determine the bill. The Homestead Exemption removes up to $50,000 of that fair market value for eligible taxpayers. For example, if the county assessor values your home at $180,000, the homestead program reduces the taxable value to $130,000 before the 4% assessment ratio is applied. The result is a $2,000 reduction in assessed value (because 4% of $50,000 is $2,000), which translates into savings based on your local millage. Because millage rates vary widely across the state, homeowners in high-tax districts can see substantial relief.

The exemption is authorized by Article X of the South Carolina Constitution and implemented through South Carolina Code §12-37-250. Local county auditors administer applications and maintain the list of approved homestead properties. Once you are approved, the exemption continues automatically for as long as you live in and own the home. If you sell, rent out, or otherwise change the property’s use, you must inform the auditor so they can remove the exemption. Failing to do so can result in back taxes, penalties, and interest.

To make the exemption easy to access, the Department of Revenue publishes statewide guidance, but each county sets practical procedures for filing. Most counties accept applications in person at the auditor’s office; some now offer mail-in or online submission portals if you can provide notarized signatures and supporting documents. Counties also coordinate with the Social Security Administration and Veterans Affairs to verify disability statuses and with probate courts for life estate documentation.

Eligibility Details

The state statute sets a three-pronged eligibility test:

1. Age: You must be at least 65 years old on or before December 31 preceding the tax year for which you seek the exemption. Proof includes a birth certificate, South Carolina driver’s license or DMV identification card, passport, or Medicare card showing your birthdate. If the property is jointly owned, only one owner must meet the age requirement.
2. Disability: Alternatively, you qualify if you are totally and permanently disabled, regardless of age. This typically means you receive Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI) due to a disability expected to last at least one year or result in death. A certification letter from Social Security or a physician’s statement on county forms will satisfy the requirement. Veterans rated 100% service-connected disabled are also eligible.
3. Blindness: Legal blindness under Social Security standards is another route to eligibility. Provide a medical certification or Social Security proof showing blindness status.

In addition to one of those statuses, you must meet residency and ownership tests:

• Ownership: The applicant must hold the legal title or an approved beneficial interest. Acceptable ownership structures include fee simple, joint tenants with right of survivorship, tenants in common, life estate created by deed or will, and certain trust arrangements where the applicant is the income beneficiary and retains use of the property. If the property is held in a revocable living trust, include the trust agreement showing your beneficial interest.
• Occupancy: The property must be the applicant’s legal residence—meaning the primary domicile for voting, driver licensing, and tax purposes. Vacation homes, rental properties, or second homes do not qualify. Applicants should have resided in the home for at least one complete calendar year before December 31 preceding the tax year.
• Residency documentation: Counties routinely request copies of your South Carolina driver’s license (matching the property address), voter registration card, vehicle registration, or prior-year state income tax return to confirm residency.

Benefit Amount and Savings Examples

While the law caps the exemption at $50,000 of fair market value, the real-world savings depend on local millage rates. Consider these examples:

• Richland County: Composite millage for a Columbia homeowner could be around 0.37. Removing $50,000 of fair market value reduces the assessed value by $2,000. Multiply $2,000 × 0.37 = $740 in annual tax savings.
• Greenville County: With a composite millage closer to 0.30, the same $2,000 reduction in assessed value saves about $600 per year.
• Horry County: In coastal areas with lower millage (0.24), the savings are roughly $480 per year.

Because millage can shift each fiscal year, revisit your bill annually to confirm the exemption is still applied and that the savings align with expectations. If you escrow taxes with your mortgage servicer, provide them with the approval letter so they can adjust your monthly payment and avoid over-escrowing.

Application Steps

1. Collect proof of eligibility: Gather documents proving age, disability, or blindness; proof of ownership (recorded deed, life estate document, or trust certificate); and residency documents (driver’s license, voter registration, utility bills).
2. Obtain the application: Visit your county auditor’s office or download the Homestead Exemption application from their website. Many counties use a standard form prescribed by the Department of Revenue (SC135 or similar).
3. Complete the form carefully: Provide all owners’ names, Social Security numbers (often required for verification), parcel identification, and certify that the property is your legal residence. Double-check mailing addresses to ensure the auditor can contact you.
4. Submit between January 1 and July 15: Counties accept applications during this window for the current tax year. Late applications may still be accepted if you experienced extenuating circumstances, but approval may be delayed until the next billing cycle.
5. Present documents in person or via secure upload: Some counties require in-person submission to verify original documents; others accept notarized copies by mail. Ask your county auditor for specifics. Bring your driver’s license and supporting evidence for review.
6. Confirm approval: County auditors usually issue a receipt or letter confirming acceptance. They update the tax roll before bills are generated in the fall. Check your tax bill for a “Homestead Exemption” line item or code (often “HX” or “HS”).
7. Maintain eligibility: If your eligibility status changes—such as moving, placing the home in a non-qualifying trust, renting out the property, or the eligible owner passing away—notify the auditor within six months to avoid penalties.

Document Checklist

• Government-issued photo ID with property address
• Birth certificate or passport (for age verification)
• Social Security benefit letter or VA disability letter (for disability qualification)
• Physician’s certification (if blindness is the eligibility path)
• Recorded deed, life estate agreement, or trust certificate showing ownership
• Utility bill, voter registration, or state income tax return with matching address
• Completed county homestead exemption application

Timing Considerations

Processing times vary by county. Some auditors approve applications on the spot; others batch process monthly. Applying early in the calendar year ensures the exemption appears on the fall tax bill. If you apply after bills are generated, the county may issue an adjusted bill or refund, but it requires additional paperwork. New homeowners should apply as soon as they meet the age or disability requirement and have occupied the home for the requisite time. If you turn 65 midyear, you can apply at the start of the next year with the prior year’s proof of age.

Coordination With Other Programs

• 4% Legal Residence Assessment Ratio: This is separate but complementary. Ensure you have already filed for the legal residence classification; otherwise, the homestead exemption cannot be applied correctly.
• Local Option Sales Tax Credits: Counties that collect local option sales tax distribute credits on property tax bills. The homestead exemption lowers the taxable value before those credits are calculated, maximizing the benefit.
• Property Tax Installment Payment Plans: If you participate in installment plans, verify that the reduced bill is reflected in the new payment schedule.
• Agricultural Use Valuation or Special Assessment: If part of your property has agricultural classification, consult the assessor to ensure the homestead exemption applies appropriately to the residential portion.

Tips to Maximize Savings

• File promptly when you become eligible. The exemption is not retroactive beyond the year of application, so waiting costs money.
• Coordinate with estate planning. If you transfer the home into a trust, ensure the trust terms explicitly grant you a life estate or beneficial interest so you remain eligible.
• Double-check mortgage escrow. Provide the approval letter to your mortgage company so they recalculate escrow payments and pass savings through to you.
• Keep copies of everything. Store your application, approval notice, and supporting documents in a dedicated folder. Counties may conduct audits, especially if the property’s use is questioned.
• Use county GIS tools. Many counties allow you to view your property’s tax record online. Look for the homestead code each year as confirmation.
• Request tax counseling. Area Agencies on Aging and local Veterans Affairs offices often help seniors complete applications and navigate other benefits.

Example Scenarios

1. Retiree downsizing: Maria, age 67, buys a townhouse in Lexington County in June and closes on July 1. She applies for the legal residence assessment immediately and files the homestead application the following January with her passport and deed. Her taxable value drops from $220,000 to $170,000, saving about $700 annually.
2. Disabled veteran: David, age 45, is 100% service-connected disabled. He submits his VA disability letter and deed in Greenville County. The county approves the exemption, reducing his annual tax bill by $630. He also qualifies for a separate state benefit that exempts a portion of his vehicle tax.
3. Life estate holder: Mrs. Jenkins conveyed her property to her children but retained a life estate. At age 72, she files with the recorded life estate deed and qualifies, even though her children hold the remainder interest. The auditor explains that the exemption will terminate when she no longer occupies the property.

Common Mistakes to Avoid

• Assuming automatic enrollment. Counties do not proactively add eligible homeowners. You must apply.
• Missing ownership documentation. New homeowners sometimes rely on closing statements instead of recorded deeds; counties require the deed or proof of recorded ownership.
• Providing out-of-date IDs. If your driver’s license still lists your former address, the county may deny the application until you update it.
• Failing to report a move. Renting the property or moving into assisted living without notifying the county can lead to back taxes plus a 15% penalty.
• Trust complications. Transferring the home into an irrevocable trust without retaining beneficial occupancy can void the exemption.

Frequently Asked Questions

Can multiple owners qualify? Only one owner has to meet the age, disability, or blindness requirement, but all owners must sign the application or provide authorization.

Does the exemption cover land over five acres? The exemption applies to the residential dwelling and up to five contiguous acres. Additional acreage is taxed at the standard rate.

What if the qualifying owner dies? Surviving spouses who are at least 50 years old and acquire the ownership interest may continue the exemption if they meet residency requirements. Notify the auditor immediately to update records.

Can I transfer the exemption to a new home? You must reapply when you move. The exemption does not automatically follow you to a new residence.

Is there income testing? No income limits apply; eligibility is based on age, disability, or blindness, plus residency and ownership criteria.

Additional Resources

• South Carolina Department of Revenue Homestead Exemption Guide: https://dor.sc.gov/tax/property/property-tax/homestead-exemption
• County auditor directories: https://dor.sc.gov/tax/property/property-tax (navigate to local contact list)
• South Carolina Code §12-37-250 (statutory authority)
• Local Area Agency on Aging services: https://aging.sc.gov/programs-services

Staying proactive with paperwork, verifying that the exemption appears on your bill each year, and coordinating with other property tax relief tools ensures you get the full value of this important South Carolina benefit.