Short answer: The Town of Hilton Head Island charges a real estate transfer fee of 0.25% of the sale price on property inside the Town limits, so $2,250 on a $900,000 home. Beaufort County collects it when the deed is recorded, and the Town dedicates it, about $4.2 million a year, to its Land Acquisition Program. It's typically paid by the buyer; the Town Code as published online names the purchaser as liable. It's in addition to the state and county deed recording fee, which the seller owes by statute.
Key facts
- Rate: ".25 of one percent of the sale price," or 0.25% (Town of Hilton Head Island, Town Taxes and Fees).
- Where it applies: real estate inside the Town limits. The Register of Deeds applies it to tax districts in the 500 range except 501, which is outside the Town (Beaufort County Register of Deeds).
- Who collects it: Beaufort County, at recording, for the Town.
- What it funds: the Town's Land Acquisition Program; it averages about $4.2 million a year.
- Who pays: typically the buyer. The Town Code, as published, makes the purchaser liable; see the caveat below.
- Why only Hilton Head: state law bans local transfer fees, except ones a town enacted before January 1, 1991 (SC Code 6-1-70). Hilton Head's dates from Ordinance 90-26 (October 1, 1990).
- Exemptions: claimed by affidavit at recording, citing the ordinance (Register of Deeds).
- Examples: $500,000 sale, $1,250; $900,000, $2,250; $1,500,000, $3,750.
How much is the Hilton Head transfer fee?
A quarter of one percent of the sale price. The math is the price times 0.0025:
| Sale price | Town transfer fee (0.25%) |
|---|---|
| $400,000 | $1,000 |
| $650,000 | $1,625 |
| $900,000 | $2,250 |
| $1,500,000 | $3,750 |
| $3,000,000 | $7,500 |
There's no cap. You may see the fee described elsewhere as "0.25% of the purchase price or $1,000." Neither the Town's page nor the Register of Deeds says anything about a $1,000 alternative or a $1,000 cap; the County applies ".0025 X the Consideration." At $400,000 the two happen to match, which may be where the confusion started. See your total with the state deed fee in the closing-cost calculator.
Who pays the Hilton Head transfer fee, buyer or seller?
Typically the buyer. The Town's own Taxes and Fees page says only that the fee is "usually included in the closing costs" and doesn't name a payer. The Town Code section that imposes it (Sec. 4-5-20) says the fee "shall be paid by the purchaser" and defines the purchaser as the transferee or grantee. The online code wouldn't open for us to recheck the current text, so confirm with your closing attorney or Town Revenue Services.
Some websites say transfer fees on Hilton Head are generally charged to the seller. For the Town fee, that's backward. A purchase contract can still shift the cost between the parties as a business term, but that only changes who reimburses whom. Read the closing-cost section of your contract before you sign it.
Don't confuse this fee with the state and county deed recording fee. That one is $3.70 per $1,000 and the seller is primarily liable for it by statute (SC Code 12-24-20). See the deed recording fee.
Does the transfer fee apply everywhere with a Hilton Head address?
No, only inside the Town of Hilton Head Island's limits. The Register of Deeds applies the fee to tax districts in the 500 range except district 501, the part of Hilton Head outside the Town. Some mainland neighborhoods are marketed as "Hilton Head"; the Town fee doesn't apply there. The tax district on the County's property record tells you which it is.
What does the transfer fee pay for?
Land. The Town dedicates the fee to its Land Acquisition Program, which buys property and development rights, and says the fee brings in an average of about $4.2 million a year. Hilton Head can charge it because of timing. State law (SC Code 6-1-70) prohibits local real estate transfer fees unless authorized by general law, but lets a municipality keep a fee it enacted before January 1, 1991. Hilton Head's ordinance took effect October 1, 1990.
The Town Code as published also sets an end date for the fee. We couldn't confirm the current date and the ordinance that extended it from an official page we could open, so we don't state it here. Town Revenue Services can confirm it.
Are any transfers exempt?
Yes, some, and you have to claim them. The Register of Deeds requires exemptions to be claimed by affidavit that cites the law, using the County's Affidavit of Consideration and Exemption. The County's pages cite Hilton Head Ordinances 95-2 and 95-4 and Ordinance 90-26. We haven't found the full current list of exemptions on a Town or County page we could open, so ask your closing attorney whether your transfer qualifies.
An Affidavit of True Consideration is required when the deed doesn't state the price, because both this fee and the state deed fee are figured from the price.
How we help
We'll confirm from the County record whether a home is inside the Town limits, show the Town fee and the deed fee on your estimate before you offer, and check how your contract splits closing costs. Your closing attorney handles the payment at recording.
Questions
Is the Town transfer fee the same as a community transfer fee?
No, they're separate, and a buyer can owe both. The Town fee is 0.25% on every sale inside the Town limits. Some private communities charge their own fee at closing: Palmetto Dunes POA, for example, charges a 0.5% Community Enhancement Fee to the buyer. See community transfer fees.
Is the transfer fee paid every year?
No, it's a one-time fee, paid when the deed is recorded. It isn't part of your annual property tax bill. Ask a tax adviser how it's treated for income tax, since that depends on whether the home is a residence or a rental.
Does the fee apply to a villa or condo?
Yes, if it's inside the Town limits. The Town fee applies to real estate bought in the Town, and a villa or condo unit is real estate. The rate is the same 0.25% of the price.
Sources
- Town taxes and fees, Town of Hilton Head Island (checked October 2026)
- Document recording, Beaufort County Register of Deeds (checked October 2026)
- Affidavit of Consideration and Exemption, Beaufort County Register of Deeds (checked October 2026)
- SC Code Title 6 Chapter 1 (6-1-70, local real estate transfer fees), SC Legislature (checked October 2026)
- SC Code Title 12 Chapter 24 (deed recording fees), SC Legislature (checked October 2026)