Understanding South Carolina’s Transfer Tax: A Quick Guide
When selling your home in South Carolina, it’s important to understand the various costs involved, including real estate transfer taxes. These taxes are fees imposed by state, county, or municipal authorities whenever there’s a transfer of property ownership.
We’ll explore the different types of transfer taxes, who is responsible for paying them, and any applicable exemptions. Whether you’re a first-time seller or seasoned in real estate transactions, this guide will help you estimate what you might expect to pay in transfer taxes when selling your property in South Carolina.
What are transfer taxes?
Transfer taxes are defined by the Federal Trade Commission as taxes imposed by state or local authorities when the ownership of a property changes hands. This means when you transfer the title of your property—essentially, your legal ownership rights—to someone else, a tax is levied on this transaction.
The specific amount you owe in transfer taxes can vary significantly depending on where the property is located, adhering to the guidelines set by the state, county, or city. These taxes are a fundamental way for jurisdictions to generate revenue, supporting various public services and infrastructure projects within the community.
Who pays for transfer taxes?
In South Carolina, transfer taxes are typically the seller’s responsibility, but this is not mandatory. It’s possible that the buyer and seller can arrange to split the cost or have the buyer handle it. Work this out on your seller agreement before you finalize the transaction. This is an area where a professional real estate agent can assist.
