Overview of Homestead Exemptions in South Carolina
The South Carolina Homestead Exemption allows eligible taxpayers to be tax exempt on the first $50,000 of assessed value on their primary residence. To be eligible, a taxpayer must be 65 years of age or older as of Dec. 31 of the previous tax year or 100 percent totally and permanently disabled or legally blind.
Homestead Exemption Process
To receive a tax exemption under the Homestead Exemption Law in South Carolina, homeowners must make a homestead declaration by filling out an application. This must usually be done by Tax Day or the first quarter’s property tax due date.
Understanding Taxation in South Carolina
South Carolina residents who work out of state may be taxed on that income by the non-resident state. However, there is a credit available to avoid dual taxation by filing specific forms.
South Carolina offers a credit to avoid dual taxation on out-of-state income by filing Form-1040 and Form-1040TC and attaching your return from the other state. Individual Income Tax rates in South Carolina range from 0% to a top rate of 7% on taxable income. Tax brackets are adjusted annually for inflation.
South Carolina has a state sales tax rate of 6% with the possibility for cities and counties to collect an additional 1%. Grocery items are exempt from state sales tax but may still be subject to local sales tax. FlyFin’s CPA team provides guidance, tax preparation, and filing services for freelancers, independent contractors, and small businesses in South Carolina through an app that leverages A.I. to maximize deductions.