South Carolina Increased Homestead Tax Exemption
State lawmakers raised the property tax exemption for qualified homeowners to $75,000 in the current budget.
Updated on Oct. 7, 2026 in Taxes
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South Carolina legislators adopted a state budget on August 11, 2026, that increased the homestead property tax exemption from $50,000 to $75,000. This provision aims to provide relief to seniors and disabled residents facing rising property tax bills.
Why it matters
Lawmakers enacted this increase to offer targeted property tax relief for residents on fixed incomes. The change helps eligible homeowners offset a portion of their property's fair market value from taxation.
The new $75,000 exemption represents a 50% increase over the previous $50,000 limit established in 2008. The state expects an annual cost of $58.3 million to reimburse local governments for lost revenue.
The players
Henry McMaster
He is the Governor of South Carolina who oversaw the 2026-27 state budget adoption process.
The details
Qualified homeowners, including those 65 or older, the permanently disabled, or the legally blind, must apply through their county auditor to receive the benefit. The state government compensates local jurisdictions for the resulting tax revenue shortfall.
Timeline
The previous exemption amount of $50,000 was set in 2008.
The legislature adopted the budget with the increased exemption on August 11, 2026.
Governor Henry McMaster issued his budget vetoes on August 17, 2026.
Homeowners must meet residency and eligibility requirements by December 31.
The next legislative session begins in January 2027.
Market Dynamics
This tax adjustment reflects a broader legislative effort to address housing affordability and inflationary pressures on fixed-income residents. It follows the long-standing precedent of using homestead exemptions to shield specific demographic groups from rising property assessments.
Eligible residents should contact their local county auditor to ensure they are properly registered for the increased exemption before the end of the year. This adjustment effectively lowers the taxable fair market value of qualifying primary residences, potentially reducing annual tax obligations for retirees and disabled homeowners.
The takeaway
This policy provides temporary financial relief to vulnerable homeowners by raising the value of property shielded from taxation. Residents should verify their eligibility status early to ensure they benefit from the current fiscal year provision before any potential expiration.
What happens next
The South Carolina legislature is expected to debate whether to extend or make the $75,000 exemption permanent during the 2027 legislative session beginning in January.
Further reading
For more information on local assessments, visit the South Carolina Taxes section.
More information
Eligible homeowners can apply for the exemption through the Horry County tax payer services portal.
Source note: This article includes information reported by MyrtleBeachSC news.
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