Why It’s Important for Homeowners to File for an Owner-Occupant Tax in South Carolina

Buying a home is one of life’s biggest milestones, and once you’ve moved in, there’s one important step that can save you thousands of dollars each year filing for the owner-occupant (4%) tax rate in your county.

At The Sherpa Group, we always remind our clients that filing this exemption is one of the smartest financial moves a homeowner can make in South Carolina.

What is the Owner-Occupant Tax Rate?

In South Carolina, property taxes are based on how the home is used.

• Primary residence (Owner-Occupant): Taxed at 4%

• Investment property/Second home: Taxed at 6%

That 2% difference may not sound like much but it can easily translate into hundreds or even thousands of dollars in annual savings. For example, a $250,000 home classified at 6% could result in double the tax bill compared to the same home filed at 4%.

Why Filing is So Important?

1. Lower Property Taxes

Without filing, your county will automatically tax your home at the higher 6% rate, assuming it’s an investment property. Filing as an owner-occupant guarantees you receive the much lower 4% rate.

2. Deadline Matters

Most counties require you to apply for the 4% rate within the first year of purchase. If you miss the deadline, you could be stuck paying the higher rate until the next tax year.

3. Financial Security

Over time, the savings from filing for the 4% rate can help you build equity faster, free up money for renovations, or simply reduce your monthly budget strain.

4. Legal Accuracy

Filing ensures your property is correctly recorded as your primary residence with the county assessor’s office.

How to File in Richland & Lexington Counties

Filing is simple but requires documentation. Here’s how it typically works:

• Richland County:

  • File through the Assessor’s Office (online or in person).

  • Provide proof of residency (South Carolina driver’s license, voter registration, vehicle registration).

  • Application must be submitted by the first year of ownership.

• Lexington County:

  • Similar process: complete the Legal Residence Application.

  • Proof of residency required.

  • File as soon as you move in to avoid delays.

If you’re in another county, check with the local Assessor’s Office for their specific process and deadlines.

The Sherpa Group’s Advice

We always recommend filing as soon as you close on your new home. It’s a one-time filing that continues to benefit you as long as the home remains your primary residence.

Don’t leave money on the table. By taking just a few minutes to file, you’ll secure long-term tax savings and protect your home’s correct classification.

Final Thoughts

Owning a home in South Carolina comes with incredible benefits and the owner-occupant 4% tax rate is one of the most valuable. Whether you’re in Columbia, Lexington, Sumter, or beyond, filing ensures you get the tax savings you deserve.

At The Sherpa Group, we don’t just help you buy a home we guide you through the details that make homeownership smarter and more affordable.

📞 Have questions about filing for your county? Contact The Sherpa Group today we’re here to help!