Hilton Head, South Carolina, Financial Overview

South Carolina Tax Information To Help In Your Purchase Of Hilton Head Real Estate

When moving to a different state, questions may arise about changes in taxes. Property taxes and rates vary widely throughout the country and can affect decisions in your home search.

South Carolina Property Taxes
The first question that may come to mind when buying Hilton Head real estate, whether it be property, a home, or condo, is what are the property taxes? In South Carolina, the market value of a piece of real estate with up to 5 acres of surrounding property is assessed at 4%. If you are 65 years old or older, legally blind, or permanently and totally disabled, and have been a resident for one year, you are qualified for an exemption for the first $50,000 of the property. This property tax exemption can only be used on your main home and not a second home. A millage rate is then applied, which is determined by the local government and varies widely. The millage rate of Beaufort County is different for each area of Hilton Head and surrounding areas. The amount of taxes that the state collects is fairly moderate compared to other states in the country. Check www.bcgov.net for millage information on your property. If a property is sold in another state, then you do not have to pay capital gains tax in SC. There is no inheritance tax in SC and estate tax is regulated by the federal state tax collection. If an estate is left to a spouse, it is exempt from taxing.

Medical Taxes
Taxes and deductions vary from state to state for prescriptions and medical and dental work, so it is essential that you are aware of the changes. There is a 6% sales tax with prescription drugs being exempt but non-prescription drugs are not exempt. Dental prosthetics and hearing aids are also exempt. If you are 85 years or older, you are exempt from 1% of the sales tax.

Retirees
Many people choose purchase Hilton Head real estate and retire in the surrounding lowcountry. Retirement benefits and income taxes are something you will want to be aware of. In SC, retirement income is taxed and social security is exempt. If you are under 65 years of age, $3000 in pension income is exempt. Once you turn 65 years old, $10,000 is exempt. A South Carolina resident who is 65 years or older by the end of the official tax year, can take a deduction of up to $15,000. If you are filing a joint return and both filers are 65 years or older, then you can deduct $30,000. If there is only one filer who is 65 years or older, then only deduct $15,000. A surviving spouse may use the retirement deduction based on how old the deceased spouse would be if he or she were alive.

Military
If you are receiving military pay or disabled military pay, deductions may be different in South Carolina. If you are 65 years or older and served in the military for 20 years, deduct $10000. A surviving spouse may also take this deduction. Until you turn 65 years old, you may deduct $3000.

Other Taxes You Need To Know About
Personal income tax exemptions are as follows: Single-$3200, Married-$6400, Dependents-$3200. Standard deductions are as follows: Single-$4750, Married filing jointly-$9500. Vehicle property tax is colleted once a year on all cars, recreational vehicles, boats and airplanes. If you own a vehicle worth about $10,000, the tax would be about $274. This information is according to the average millage rate and South Carolina Department of Revenue. There are 6 tax brackets in South Carolina with the rate ranging from 2% to 7%.

Benefits To You
There are several income tax credits that can be beneficial to your family that you should be aware of. If you are paying tuition to a South Carolina public or private college, you can receive a 25% tax credit. The person attending the college must be registered for at least 30 hours per school year to qualify for the credit. The person who is paying for the tuition receives the tax credit. Disabiltiy income is deductable. You can receive a credit of $300, if you are making payments to nursing home care or nursing home care provided in the home for you or your spouse.

To find more information to make your purchase of Hilton Head real estate easier, go to the South Carolina Department of Revenue website. www.sctax.org.