Will Property Taxes Be Going Down in SC?

Spring in the Upstate can make even a tax discussion feel tolerable (sunlight does wonders for policy talk). This episode takes on a question many homeowners, investors, and renters quietly ask: Will property taxes go down in SC? The short answer: there’s meaningful momentum to rethink how South Carolina taxes property—but any real relief will demand a broad rewrite of the tax code, not a quick patch.

What follows is a grounded walkthrough of what’s on the table, why SC is such an outlier, who currently carries the heaviest load, and how proposed changes could ripple through owners, landlords, manufacturers, and renters across the state.

Will Property Taxes Be Going Down in SC?

A fresh push is underway from three corners that rarely team up in such a focused way: the South Carolina Realtors (SCR), the South Carolina Chamber Foundation, and the Lincoln Institute of Land Policy. They collaborated on a study to spotlight how South Carolina funds local government—especially schools—through property taxes, and where the math no longer makes sense.

The headline from that work is simple: South Carolina leans hard on property taxes for public education, but it shifts a disproportionate share onto non-owner-occupied homes and certain businesses. In effect, the system rewards owner-occupants and seniors while asking landlords, second-home owners, and manufacturers to cover gaps. (If tax policy were a potluck, some folks brought paper plates while others paid for the entrée.)

The Three Tiers Everyone Feels (Even If They Don’t See Them)

On the residential side, there are three broad lanes:

• Owner-Occupied Homes (the “4% rate”) This is the preferred lane for primary residences. The “4%” label isn’t a simple calculation; mileage, fees, and line items complicate it. But this tier pays the least.

• Homestead Exemption (65+ on a primary home) Seniors in their primary residence get an additional reduction layered on top of the 4% treatment, shrinking the bill further.

• Non-Owner-Occupied / Second Homes / Rentals (commonly assessed at the “6% rate”) This lane includes landlords and second homes—and it doesn’t just mean “a little bit more.” In practice, the bill can run 2.5× to 3.5× what an owner-occupant would pay on the very same property (the episode’s words are blunt on this point).

And here’s the kicker: in South Carolina, owner-occupants receive school-tax relief, and the portion they don’t pay is effectively shifted toward the non-owner-occupied lane. Result: landlords shoulder a big slice of school funding, then pass that cost through to renters. That’s one reason rents can feel out of step with local home prices.

Why SC Stands Out

According to the episode, South Carolina is an extreme outlier in how it assigns school funding via property tax. The combination of a lower owner-occupied class, a senior homestead layer, and a heavier school burden on landlords creates a system that feels fair to many primary owners but functions unfairly for renters and those who provide rental housing. The end result: renting becomes painfully expensive compared with owning—even before the landlord’s margin and maintenance realities enter the picture.

What the Study Recommends (And Why It Won’t Be Simple)

The collaborative report doesn’t just point out oddities; it proposes changes with a “fix the foundation, not just the drywall” mindset.

1) Bring Manufacturing Back to Earth

Manufacturing property in the Upstate pays more than standard commercial for reasons that aren’t aging well with the region’s economic story. The report’s stance: normalize manufacturing assessments so they align with standard commercial (6%). In a region where manufacturing is a backbone—not a side gig—this would be a practical correction.

2) Stop Treating Landlords Like ATMs for Schools

The boldest residential recommendation: reduce non-owner-occupied homes from 6% to match the owner-occupied 4%. In plain language, long-term rentals and second homes would no longer be charged at a structurally higher rate and expected to underwrite school taxes the way they do now. That shift would make the system more evenhanded—and could, over time, reduce pressure on rents driven by property tax pass-throughs.

3) Revisit the 15% Assessment Cap

Right now, a county’s reassessment can’t push a property’s taxable “fair market value” up more than 15% in a year—unless there’s a qualifying sale or transfer (often called ATI). Once a property sells, the value can reset much closer to the new purchase price, which is why buyers sometimes see a sharp tax jump shortly after closing. The report suggests repealing the 15% cap so long-held properties don’t sit far below market indefinitely. That’s controversial, but the goal is a broader base with fewer abrupt resets when a property changes hands.

4) Acknowledge the Tradeoffs

Cutting the non-owner-occupied class from ~6% to ~4% and normalizing manufacturing would remove a meaningful revenue stream. The report doesn’t pretend otherwise. It implies lawmakers will have to rebuild the education-funding equation and clean up a tangled web of line-items and add-ons that currently make South Carolina tax bills look like a kitchen junk drawer (everyone’s got a mystery fee in there somewhere).

Where State Leadership Stands (and How Quickly This Could Move)

The Governor’s office, per the episode, has responded favorably to the effort in principle. But “favorably” isn’t the same as “scheduled floor vote with a bow on top.” The General Assembly has faced pandemic-era slowdowns, and comprehensive tax reform—especially when it touches public school funding—requires consensus, timing, and a plan that replaces lost dollars with something sustainable.

Realistically, this isn’t a light switch. It’s a blueprint for a remodel. The attention is encouraging; implementation is the mountain.

How This Hits Different Stakeholders

Even without a signed bill, understanding the dynamics helps buyers, owners, and renters make steadier decisions now.

Owner-Occupants

The current setup favors primary residences (and seniors most of all). In the near term, that likely remains intact while lawmakers map the bigger picture. If the 15% cap is repealed, some long-tenured owners might see more frequent, incremental step-ups rather than a single jolt at sale. The episode encourages everyone—buyer or owner—to use county tax calculators to “stress-test” bills under different fair-market values.

Landlords and Second-Home Owners

This is the group most weighed down today and most directly helped by the proposals. A shift from the 6% lane to parity with 4% would, over time, lower carrying costs on rentals and second homes. That could reduce rent-increase pressure or free up cash for overdue maintenance—both of which would improve housing quality for tenants. But until anything passes, assume the current rules hold.

Manufacturers and Local Businesses

Normalizing manufacturing assessments to match standard commercial would align tax load with economic reality. In an Upstate economy that depends on making things—not just selling them—this removes an odd penalty for doing exactly what the region is known for.

Renters

Renters pay the hidden portion of this system—the landlord’s higher property tax—in monthly installments. If residential non-owner-occupied properties moved to a 4% lane, landlords wouldn’t need rents to shoulder such a steep tax bill, and some of that pressure could ease. That’s not a guarantee of lower rent; it is a path to fewer “tax-driven increases.”

Practical Notes From the Episode

• SC is complex by design. Bills include local millage, one-off fees, and line items that vary county to county (even property to property).

• Sales reset value. After a sale, expect reassessment closer to purchase price (the episode’s advice: use the county calculator and plug in your contract price to preview a realistic bill).

• Education funding is the hinge. Any “yes” to fairness has to be matched by a “how” that keeps schools funded—South Carolinians want better schools and better roads, not just better bills.

• Change would be statewide and structural. That’s why it takes time. The upside: when it lands, it won’t be a bandage.

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Bottom Line

Will property taxes be going down in SC? The momentum is real, the arguments are sound, and leadership sounds open. But meaningful relief—particularly shifting rentals from the 6% lane to 4%, normalizing manufacturing, and rethinking the 15% cap—requires an overhaul of how South Carolina funds public education and assigns local costs. That’s a multi-step lift, not a single vote. For now, plan under today’s rules, model tomorrow’s possibilities, and keep an eye on Columbia. If reform lands the way this study suggests, owners, renters, and the broader economy could all benefit from a tax system that finally matches how South Carolina actually lives, works, and rents.

Ien Araneta

Journal & Podcast Editor | Selling Greenville