Charleston Rental Property Taxes in 2026: 4% vs 6%, Accommodations Tax, and What Owners Actually Pay
Quick answer: In South Carolina, a home you live in as your legal residence is assessed at 4% of its value and is exempt from school operating taxes. A home you rent out is assessed at 6% and pays the full school operating levy, so its property tax bill is often two to three times higher (SC Code 12-43-220 and 12-37-220). You can rent your legal residence for up to 72 days a year and keep the 4% ratio (SCDOR Revenue Ruling 15-4). Separately, any stay shorter than 90 continuous days to the same guest is subject to accommodations tax, which totals 14% inside the City of Charleston in Charleston County (City of Charleston). A 30+ night stay avoids the city’s short-term rental permit, but not that tax until the stay reaches 90 days.
The 4% vs 6% assessment ratio
The formula is appraised value × assessment ratio × millage. Owner-occupied legal residences use 4%. Rentals, second homes, and other property use 6% (SC Revenue and Fiscal Affairs Office).
The bigger difference is school operating millage. Since Act 388 of 2006, a legal residence on the 4% ratio is exempt from school operating taxes, though not school bond debt (SC Code 12-37-220(B)(47)). A rental pays all of it.
Here is an illustration using Charleston County’s 2025 millage card for the City of Charleston (298.1 total mills, 142.5 of them school operating), on a home appraised at $600,000:
- As a legal residence (4%): $24,000 assessed × 298.1 mills = $7,154, minus about $3,420 of school operating relief = about $3,734
- As a rental (6%): $36,000 assessed × 298.1 mills = about $10,732, with no school operating relief
These are estimates before local sales tax credits and the solid waste fee. Your real bill depends on your tax district and assessed value, but the direction holds: the same house can cost close to three times as much in property tax once it becomes a rental.
The 72-day rule
You do not lose the 4% ratio the first night you rent. Under Act 259 of 2014, an owner can rent an owner-occupied legal residence for 72 days or less in a year and stay eligible for 4% (SCDOR Revenue Ruling 15-4). Past that, or once you move out and rent the home full time, it no longer qualifies.
Tell the assessor when the use changes
This is the part owners miss. If you move out and start renting, you must notify the assessor within six months of the change. Charleston County has an owner removal/change notice for this. If you keep the 4% ratio after losing eligibility and do not report it, the penalty is 100% of the tax paid plus interest at 0.5% a month, capped at the current year’s taxes (SC Code 12-43-220, quoted on the county’s form). If you move back in, the 4% application deadline is typically January 15 (Charleston County).
Buying to rent? Budget from the 6% math, not the seller’s 4% bill shown on the listing.
Accommodations tax and the 90-day line
South Carolina charges sales tax on accommodations for stays shorter than 90 continuous days to the same person. Inside the City of Charleston in Charleston County, the stack is 14%:
- 5% state sales tax and 2% state accommodations tax
- 1% local option, 1% county transportation, and 1% school district taxes
- 2% Charleston County and 2% City of Charleston accommodations taxes
City properties in Berkeley County total 12% (City of Charleston). The tax does not apply once the same guest rents the home for 90 continuous days or more (SCDOR Policy Manual, Chapter 11). There is also a narrow exemption for a residence rented fewer than 15 days in a year (SCDOR Revenue Ruling 15-4).
So a 30, 45, or 60 night furnished stay is still taxed, and your manager should collect it from the guest and remit it. The city notes that not every booking platform remits the local county and city portions, and state law allows penalties of $500 to $2,000 for each seven days a property was rented without collecting.
30 days vs 90 days: two different lines
- 30 days is the City of Charleston’s short-term rental line. Stays under 30 consecutive days need an STR permit and business license, generally only in an owner’s primary residence. Renting for 30+ nights keeps a home out of that category.
- 90 days is the state’s accommodations tax line. Stays under 90 days to the same guest are taxed.
A furnished 30+ night rental sits in between: no STR permit, but accommodations tax applies until a guest stays 90 days.
Business licenses
The City of Charleston’s rental tax page says any rental, short or long term, needs a business license renewed by February 1. The city’s 2026-2027 business license ordinance exempts owners of fewer than five residential units not permitted for short-term rental use. Those sources do not fully line up, so confirm with the city’s business license office. Mount Pleasant, North Charleston, and unincorporated areas have their own rules.
How Proper Stays approaches it
Proper Stays manages furnished Charleston homes on 30+ night terms for relocating professionals, corporate teams, medical staff, and film crews. If you are weighing a furnished rental, ask us how the 6% ratio, the assessor notice, and the 90-day tax line affect your numbers. We are not your tax advisor, so we recommend confirming your numbers with a South Carolina CPA.
Frequently asked questions
What is the difference between 4% and 6% property tax in South Carolina?
4% is the assessment ratio for an owner-occupied legal residence, which is also exempt from school operating taxes. 6% applies to rentals, second homes, and other property. The combined effect often makes a rental’s tax bill two to three times higher.
Can I rent my Charleston home and keep the 4% rate?
Yes, if it remains your legal residence and you rent it for 72 days or less in the year (SCDOR Revenue Ruling 15-4).
Do 30+ night rentals in Charleston pay accommodations tax?
Yes, until the stay reaches 90 continuous days with the same guest. Inside the City of Charleston in Charleston County, the total is 14%.
What happens if I rent my home and do not tell the assessor?
South Carolina requires notice within six months of the change in use. The penalty is 100% of the tax paid plus interest at 0.5% a month.
Do I need a short-term rental permit for a 30+ night rental in Charleston?
No. The City of Charleston’s short-term rental rules apply to stays under 30 consecutive days. Check business license requirements for your property.
Thinking about renting your Charleston home furnished on 30+ night terms? Book a consult with our team at owner.properstays.com, call (843) 640-0897, or email Team@ProperStays.com.