Renting Your Home in South Carolina?
Here's What Happens to your property taxes
If you rent out your home in South Carolina, your property taxes can increase dramatically — in some cases approaching three times what you currently pay. There are two reasons for this:
First, your property's assessment ratio shifts from 4% (owner-occupied) to 6% (rental), a 50% increase in assessed value on its own. But the bigger surprise for many homeowners is the loss of the millage rate cap. Under SC law, owner-occupied homes benefit from a cap on millage rate increases tied to the Consumer Price Index. Over the years, this cap compounds into significant savings — meaning the rate you've been paying may be well below the full market millage rate.
Once your home is reclassified as a rental, that cap is removed and your property is taxed at the full, uncapped rate.
Combined, these two changes can result in a tax bill that is substantially higher than what you're used to — and that increase flows directly into your mortgage escrow, raising your monthly payment.
Use the tools below to estimate your exposure and avoid any unpleasant surprises. If you'd like help navigating the reclassification process or understanding your options, we're happy to assist.
