South Carolina Raised Homestead Tax Exemption in 2026
South Carolina homeowners age 65 or older, the disabled, or the blind can now exempt $75,000 of their home value.
Updated on Oct. 7, 2026 in Taxes
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South Carolina lawmakers increased the homestead property tax exemption from $50,000 to $75,000 during an August 11, 2026, special session. This change applies to qualified residents as a temporary one-year provision within the 2026-27 state budget.
Why it matters
The legislature raised the threshold to offer property tax relief to seniors on fixed incomes amid rising tax bills. This temporary relief remains effective only through the current fiscal year, pending future legislative debate.
The new $75,000 exemption is a 50% increase over the previous $50,000 limit that had been in place since 2008. The annual state cost to reimburse local governments for this expansion is estimated at $58.3 million.
The players
Henry McMaster
The Governor of South Carolina who allowed the 2026-27 budget to proceed without vetoing the exemption increase.
South Carolina State Legislature
The body responsible for state tax policy and the adoption of the 2026-27 budget provisions.
The details
The exemption functions by removing a portion of a home's fair market value from taxation calculations, effectively lowering the taxable base for eligible households. Homeowners must apply directly through their county auditor to receive this benefit. The state government compensates local jurisdictions for the revenue lost as a result of the exemption, ensuring public services remain funded.
Timeline
2008: The previous $50,000 homestead exemption figure was set.
August 11, 2026: The legislature adopted the budget containing the exemption increase.
August 17, 2026: Governor Henry McMaster issued budget vetoes.
December 31: Deadline for meeting residency and eligibility requirements.
January 2027: Start of the next legislative session.
Money Landscape
This adjustment marks the first increase to the exemption threshold since 2008. It serves as a temporary stopgap within the 2026-27 state budget, departing from the long-standing status quo of a $50,000 exemption.
Qualified residents should verify their eligibility status with their local county auditor to ensure they receive the full benefit of the $75,000 exemption. Homeowners should treat this as a temporary one-year reduction and consult with a tax professional regarding future planning if the law lapses.
The takeaway
The expanded exemption provides immediate, if temporary, tax relief for seniors and those with disabilities. Review your most recent property tax assessment to confirm your eligibility and ensure you have applied by the December 31 deadline.
What happens next
Lawmakers are expected to debate the future of the homestead exemption during the 2027 legislative session beginning in January.
Further reading
For additional context on how property assessments affect your budget, see Taxes.
More information
Eligible homeowners can find application details through the Horry County tax payer services portal.
Source note: This article includes information reported by MyrtleBeachSC news.
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Should long-time residents receive larger property tax exemptions than newer arrivals in your area?
