Money, plainly explained · South Carolina Lowcountry
Cost of Living & Taxes.
Income tax · property tax · housing, utilities, and insurance
The question underneath every relocation budget is what the move really costs, month to month and year to year. This page covers the two big numbers, the price of housing and the share of it that goes to taxes, then the smaller line items that quietly add up: utilities, insurance, and community fees. It is specific rather than generic, because South Carolina's tax rules reward primary residences and older households in ways that change the math considerably.
Last updated October 2026 By Kim Striker
What does a home cost in Hilton Head and Bluffton right now?
The most recently reported median sale prices put Hilton Head Island near $753,000 and Bluffton near $535,000 to $560,000. Medians hide the spread: oceanfront and deep-water properties run far above town medians, while villas and mainland homes run below. The monthly market update tracks both sides with sources and method notes.
| Area | Latest reported median | Period | Year over year | Source |
|---|---|---|---|---|
| Hilton Head Island | About $753,000 | Latest quarter reported | Down about 4.7% | Redfin [VERIFY: latest figure] |
| Bluffton | About $535,000 to $560,000 | Latest month and 3-month window | Mixed, depending on window | Redfin [VERIFY: latest figure] |
Figures are general market signals, not appraisals. Request the current data for your price band on a relocation call.
How does South Carolina tax retirement income?
South Carolina does not tax Social Security benefits at all. Other retirement income, pensions, 401(k) and IRA withdrawals, qualifies for the Retirement Income Deduction: up to $3,000 per taxpayer per year until age 65, then up to $10,000 once you are 65 or older. On top of that, taxpayers 65 and older may claim the Age 65 and Older deduction of up to $15,000 against remaining South Carolina taxable income, up to $30,000 on a joint return where both qualify. For most retired households, the effective state income tax bill is a fraction of what the top rate suggests. The official details are in the South Carolina Department of Revenue's retiree pages.
What property tax will I pay on a primary residence?
Two South Carolina rules cut property tax sharply for primary residences. First, the 4% owner-occupied assessment: your legal residence is taxed at 4% of fair market value instead of the standard 6%, once you file the Legal Residence (4%) application, commonly Form PD-105, with the county assessor. Second, the Homestead Exemption: homeowners 65 or older (or totally disabled or legally blind) exempt the first $50,000 of the home's value from property tax entirely, after holding the home as their legal residence for a year. In Beaufort County, both applications go through the county offices.
| Tax or rule | What it means | Who applies |
|---|---|---|
| Social Security | Not taxed by South Carolina | Everyone |
| Retirement Income Deduction | Up to $3,000 under 65; up to $10,000 at 65+ | File with SC income tax return |
| Age 65+ deduction | Up to $15,000 ($30,000 joint) | File with SC income tax return |
| 4% legal residence | Primary home assessed at 4% instead of 6% | Beaufort County Assessor, Form PD-105 |
| Homestead Exemption | First $50,000 of value exempt for 65+, disabled, or blind | County Auditor, after 1 year of residency |
| Sales tax | State rate plus local options | [VERIFY: current Beaufort County combined rate] |
What else should the monthly budget include?
Utilities
Cooling runs much of the year, so electric bills peak in summer. Water and sewer come from the Beaufort-Jasper Water & Sewer Authority on both sides of the bridge. [VERIFY: current average monthly utility bill for a typical home]
Insurance
Homeowners, wind, and flood coverage is where Lowcountry budgets differ from the rest of the country. Quote it early, on the actual property, before you fall in love. See the insurance page for the full picture.
Community fees
Assessments and club dues repeat every year and vary widely, from a few thousand to far more in the private club communities. Each community profile carries the current [VERIFY] figure.
Answers
Tax and cost questions, answered
Does South Carolina tax Social Security benefits?
No. Social Security benefits are fully excluded from South Carolina taxable income, regardless of your age. Railroad Retirement and military retirement pay are also excluded. Other pension and retirement account withdrawals are taxable but qualify for the deductions below.
What is the Retirement Income Deduction in South Carolina?
Up to $3,000 of qualifying retirement income per taxpayer each year until you turn 65, and up to $10,000 per taxpayer once you are 65 or older. Qualifying income includes most pensions, 401(k), IRA, and 457 plan withdrawals. [VERIFY: current limits at filing time]
What is the Age 65 and Older income tax deduction?
Taxpayers 65 and older may deduct up to $15,000 of additional South Carolina taxable income, doubled to $30,000 on a joint return where both spouses qualify. It is reduced by any Retirement Income Deduction already claimed. [VERIFY: current limits at filing time]
How does the 4% owner-occupied property tax work?
Your primary residence is assessed for county property tax at 4% of fair market value instead of the standard 6% for other residential property. You apply with the county through the Legal Residence (4%) application, commonly Form PD-105, and the rate applies once approved. Applications go to the Beaufort County Assessor.
What is the South Carolina Homestead Exemption?
Homeowners 65 or older, or totally and permanently disabled, or legally blind, can exempt the first $50,000 of the fair market value of their legal residence from property tax. You must have lived in the home as your legal residence for at least one year and be approved for the 4% assessment first. Apply with the county auditor.
What are the current median prices in Hilton Head and Bluffton?
The most recently reported medians are about $753,000 on Hilton Head Island (latest quarter, down about 4.7% year over year) and about $535,000 to $560,000 in Bluffton depending on the reporting window (Redfin, 2026). Medians move monthly and differ by source. [VERIFY: refresh with the latest report before republishing]
Next step
Build the real budget, not the brochure one.
On a relocation call, Kim walks through the current assessment, insurance, and tax numbers for the communities on your list.