When it comes to taxes, South Carolina stands out from the crowd. Residents of the Palmetto State pay a whopping 15.75% less in taxes compared to the national average. This revelation comes from a recent study by WalletHub, shedding light on the remarkable tax benefits that South Carolinians enjoy. The state levies taxes on various fronts, including goods, tobacco, alcohol, cars, property, and income. However, even with these taxes in play, South Carolina still ranks 13th in overall taxation, and when factoring in cost of living it rises to an impressive 11th place. This makes the state an incredibly affordable place to call home, particularly for seniors who can also take advantage of additional tax benefits.
One of the standout features of South Carolina's tax landscape is its property tax rates, which rank among the five lowest in the entire country. The effective rate comes in at just 1.98%. Homeowners can also enjoy substantial breaks if the property is considered their primary residence. Residency is determined by factors such as car registration, receiving mail, and residing in the home for 240 days or more each year. Those meeting these criteria benefit from a reduced 4% assessment rate, resulting in significant annual tax savings. For those over the age of 65, an additional perk awaits: the first $50,000 of assessed value is exempt from taxation, offering a substantial relief for retirees. With South Carolina's tax advantages, it's no wonder it's becoming an increasingly attractive destination for those seeking a financially friendly place to call home.
For more information about South Carolina's taxes, take a look at our video breakdown below.
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