Dunes Marketing Group

Taxes

Real Estate Taxes - Hilton Head Island Area

Property taxes vary throughout Beaufort County. Southern Beaufort County has many districts that encompass the area that includes Bluffton, Hilton Head Island and Daufuskie Island.

Each district sets its own rate. The county tax assessor places an appraised value on your property. The appraised value is then multiplied by four (4) percent for residents and six (6) percent for non-residents to determine the assessed value. The assessed value is then multiplied by the millage rate for your district.

Residents that qualify for the four (4) percent rate are exempt from paying taxes for school operating expenses. Non-residents paying the six (6) percent rate are not exempt for school taxes. Therefore, the millage rates are different for residents and non-residents. Following is a breakdown by district:

Personal Property Taxes

As a resident of Hilton Head Island or the surrounding area, you will also need to consider personal property taxes in your calculation of the costs of home ownership and residency.

Here’s how it breaks down:

  • You’ll pay personal property taxes annually on cars, motorcycles, recreational vehicles, boats, and airplanes based on values listed by the Beaufort County Department of Revenue.
  • The value of your personal property is multiplied by the assessment ratio to determine the assessed value. The applicable millage rate is multiplied by the assessed value of your personal property to determine the amount of personal property tax that you owe. For example, if you own a boat valued at $10,000, based on the average statewide millage rate, your personal property tax would be about $173 annually.

For more information, visit the South Carolina Department of Revenue’s web site and its information on Personal Property Taxes.

Income Taxes

In South Carolina state income tax is simple. You start with your federal taxable income.

Tax Rates

The tax rates for individual’s ranges from 3% to a top rate of 7% on taxable income.
At a minimum, expect the tax brackets to be adjusted annually for inflation.

State Income Tax Deductions

  • You will not be required to pay a tax in this state on property sold in another state.
  • You’re allowed a deduction of 44% on net long-term capital gains. South Carolina’s holding period is the same as the federal holding period (currently 1 calendar year).
  • If you retire before age 65 (good for you!), you can take a deduction of up to $3,000 from income you receive from a qualified retirement plan. This deduction is available to both spouses, if retired and younger than 65.
  • After 65, you can take a deduction of up to $15,000 from income, regardless of the source. And if you or your spouse passes, the survivor gets to keep the full deduction for both.
  • Are you a member of the National Guard or armed forces reserve? Your pay from the 39 days of annual training and weekend drills is exempt from tax.
  • If you collect disability income from a permanent and total disability, that income is deductible from your South Carolina income tax.
  • Your Social Security benefits are tax-exempt, as well as your railroad retirement plan.
  • Collect interest from a federal obligation? It’s deductible.
  • If you have a child (or children) less than 6 years of age you can take a deduction equivalent to 100% of the federal personal exemption. You can also receive deductions for adopting a special needs child.

Other deductions and modifications may be available. Consult your tax professional for more information.

And, of course, you can (and should) visit the South Carolina Department of Revenue:
www.sctax.org

South Carolina State Government:
www.sc.gov