South Carolina · Property Tax Reform

Renters pay a
hidden tax
homeowners don't.

South Carolina law taxes rental housing at a higher rate than owner-occupied homes — and that cost is passed directly into every rent check. It's not a market problem. It's a policy choice. And we can fix it.

The same house.
Two very different tax bills.

South Carolina's constitution sets the assessment rate — the percentage of a home's value subject to taxation. Owner-occupied homes are assessed at 4%. Rental properties at 6%. That assessed value is then multiplied by the local millage rate. But there's a second layer: owner-occupied homeowners receive a state sales tax credit that eliminates nearly all of their school tax obligation. Renters get no such credit — ever. The numbers below come from a real Lexington County tax bill at 446 mills.

Rental Property
$180,000 home
Home value $180,000
Assessment rate × 6%
Assessed value $10,800
Millage (446 mills) ÷ 1,000 × 446
Gross tax $4,817
Sales tax credit none
Annual tax $4,817
~$401 / monthpassed into rent
vs.
Owner-Occupied
$180,000 home
Home value $180,000
Assessment rate × 4%
Assessed value $7,200
Millage (446 mills) ÷ 1,000 × 446
Gross tax $3,211
Sales tax credit − $2,170
Annual tax ~$1,033
~$86 / monthafter sales tax credit

* Based on a 2025 Lexington County tax bill at 446.1 mills. Owner-occupied figure reflects the SC sales tax credit applied to school operations millage. Rental properties are ineligible for this credit.

$3,784 more
per year — paid by renters on the same $180,000 home in Lexington County. That's a real tax bill. $315 extra every month, just for renting instead of owning.

This isn't a loophole.
It's the law.

01

It's in the state constitution

The 6% rate isn't a quirky local policy — it's written into South Carolina's constitution. Fixing it requires a constitutional amendment, which means a two-thirds majority in the General Assembly and a statewide vote. This is a serious fight that needs serious organizing.

02

Landlords pass it straight through

Property taxes are an operating cost. Like any business expense, they get priced into what's charged — your rent. The higher the tax, the higher the floor on what landlords must charge. Renters absorb every penny of that difference.

03

Renters already start behind

Homeowners build equity, claim mortgage interest deductions, and benefit from appreciation. Renters get none of that — and under current SC law, they pay a structurally higher effective tax rate on top of it all. The system compounds inequality at every turn.

04

Change is possible

Constitutional reform in South Carolina is hard — but it happens when the public demands it. We need visible public support to give legislators the political cover to act. That starts with awareness. That starts here.

"The difference in assessment rates isn't a small technicality —
it's a structural tax on the choice to rent."