Short answer: On Hilton Head, property tax is market value times the assessment ratio (4% for your legal residence, 6% for a second home or rental) times the millage for your tax district. In district 510, which covers most of the Town, 2026 millage is 122.9 mills at 4% and 249.0 mills at 6%, so a $900,000 home costs about $4,424 a year as a legal residence and about $10,085 as a second home after the 25% exemption for a newly bought 6% property (about $13,446 without it).
How this works
South Carolina taxes real property in three steps. The Beaufort County Assessor sets the market value, the assessment ratio turns it into an assessed value, and the millage of each taxing body is applied to that.
- Market value. After you buy, the Assessor resets the value to market (a sale is an "assessable transfer of interest"). We use the price you enter as that value. The Assessor's appraisal can differ.
- Assessment ratio. 4% if it's your legal residence and you've applied for it (SC Code 12-43-220(c)), 6% for everything else, including second homes and rentals (12-43-220(e)).
- Millage. One mill is $1 per $1,000 of assessed value. A 4% home doesn't pay school operating millage (126.1 mills in 2026), which is why its total is so much lower.
Tax = market value × ratio × mills ÷ 1,000.
Key facts
- 2026 millage, district 510: 249.0 mills at 6%, 122.9 at 4%. District 520 (Broad Creek): 251.3 / 125.2. Districts 550 and 553 (South Beach, Forest Beach): 241.3 / 115.2 (Beaufort County Auditor, tax year 2026 millage card).
- School operating millage: 126.1 mills, paid only at 6% (Act 388 of 2006).
- The 72-day rule: a 4% home can't be rented more than 72 days in a calendar year. The "14 days" you'll see quoted is a different rule, for accommodations tax.
- 25% exemption after a sale (6% only): 25% of the new market value is exempt, but the taxable value can't drop below the value already on the books. You must notify the Assessor before January 31 of the first year (SC Code 12-37-3135).
- Homestead: the first $50,000 of value is exempt at 65 or older, totally and permanently disabled, or legally blind, after one year as a South Carolina resident (12-37-250). For tax year 2026 only, people already eligible in 2025 get $75,000.
- Apply for 4%: in Beaufort County, between January 1 of the tax year and January 15 of the next year.
Worked example: a $900,000 home in district 510
| Use | Taxable value | Assessed value | Millage | Tax a year |
|---|---|---|---|---|
| Legal residence (4%) | $900,000 | $36,000 | 122.9 | $4,424 |
| Legal residence, homestead ($50,000) | $850,000 | $34,000 | 122.9 | $4,179 |
| Second home, 25% exemption claimed | $675,000 | $40,500 | 249.0 | $10,085 |
| Second home, exemption missed | $900,000 | $54,000 | 249.0 | $13,446 |
The second-home row assumes the seller's value on the books is $675,000 or less. If it's higher, that higher number is the floor.
What the estimate leaves out
- Fees billed with the tax, and any credits. Check the seller's last bill for these.
- Timing. The new value applies the year after you buy, so your first bill may still reflect the seller's value.
- Parcels outside the Town (district 501) and other islands in the county.
- Next year's millage. Rates change each budget year; we update this page when the County publishes a new millage card.
Questions
Why is my first tax bill different from this estimate?
Your first bill is usually based on the value already on the books, because the Assessor reappraises the year after a sale; this calculator estimates the bill once the new value applies. The ratio works differently: a home that's your legal residence for any part of the year gets 4% for the whole year (SC Code 12-43-220(c)), so if you move in the year you buy and apply by January 15 of the next year, that year's bill can be at 4%.
Can I rent my Hilton Head home and keep the 4% rate?
Yes, for up to 72 days in a calendar year. Rent it more and it's taxed at 6%, and the Assessor can ask for your federal Schedule E to check. See 4% vs 6% in South Carolina.
Do I have to apply for the 25% exemption on a second home?
Yes. SC Code 12-37-3135(C) says it doesn't apply unless the owner or their agent tells the Assessor the property will be taxed at 6% before January 31 of the first tax year they claim it. Once claimed, you don't have to file again while you own it at 6%.
Sources
- Millage information and tax year 2026 millage card, Beaufort County Auditor (checked October 2026)
- SC Code Title 12 Chapter 43 (12-43-220, assessment ratios), SC Legislature
- SC Code Title 12 Chapter 37 (12-37-250 homestead, 12-37-3135 exemption after a sale, 12-37-3140 15% cap), SC Legislature
- Important dates, Beaufort County Assessor
- Property tax exemptions, SC Department of Revenue