How the Sellers Transfer Tax Works in South Carolina

What the Sellers Transfer Tax Is

South Carolina charges a Sellers Transfer Tax when you sell real estate in the state. It is a one-time tax paid at closing, calculated as a percentage of the sale price. The tax applies to most residential and commercial property sales, and the seller is responsible for paying it—though the amount often gets negotiated between buyer and seller as part of the closing agreement.

The tax rate in South Carolina is $0.50 per $500 of sale price, which works out to 0.1 percent of the total sale price. For a home selling for $300,000, the tax would be $300. Some counties add a local transfer tax on top of the state tax, so your total cost depends on where the property is located.

The tax is collected by the county register of deeds where the property sits. Your real estate attorney or closing agent handles the payment as part of the closing process—you do not pay it separately or file paperwork yourself.

Key Takeaways

• South Carolina's Sellers Transfer Tax is $0.50 per $500 of the sale price, paid at closing by the seller.
• Some counties charge an additional local transfer tax on top of the state tax, so the total varies by location.
• Your closing attorney or title company collects and pays the tax to the county register of deeds automatically.
• The tax applies to most property sales but has exemptions for certain transfers, such as transfers between spouses or to a trust.
• You can learn the exact amount owed before closing by asking your closing agent to calculate it based on the sale price and county.

How the Tax Is Calculated and Paid

The calculation is straightforward: take the sale price, divide by $500, and multiply by $0.50. A $250,000 sale means 250,000 ÷ 500 × $0.50 = $250 in state tax. If your county adds a local tax—some charge an additional $0.50 per $500 or a different rate—that amount is added on top.

The closing agent or attorney prepares a Deed that documents the sale. The register of deeds will not record the deed without proof that the transfer tax has been paid. Payment happens at closing, usually from the seller's proceeds. The closing statement you receive before closing day will show the exact amount owed, broken down by state and local tax.

If the sale price is not a clean multiple of $500, the tax is rounded up. A $250,001 sale is taxed as if it were $250,500, so you pay on the higher amount. This rounding protects the state from losing revenue on fractional amounts.

Which Counties Charge Local Transfer Taxes

Most South Carolina counties charge only the state transfer tax. However, some counties have added their own local transfer tax to fund schools, infrastructure, or other services. The local rate varies by county—some charge $0.50 per $500 (matching the state rate), while others charge less or more.

Counties that currently charge a local transfer tax include Beaufort, Berkeley, Charleston, Dorchester, Greenville, Horry, Lexington, Richland, Spartanburg, and York, though rates and rules change. If you are selling in or moving to one of these areas, ask your closing agent what the local rate is. The combined state and local tax can add hundreds or thousands of dollars to your closing costs, so it is worth knowing before you sign the purchase agreement.

If you are unsure whether your county charges a local tax, contact the county register of deeds office directly. They can tell you the exact rate and whether any exemptions apply to your sale.

Exemptions and Special Situations

Not every property transfer triggers the Sellers Transfer Tax. Transfers between spouses, transfers to a revocable living trust, transfers by court order (such as in a divorce), and transfers of property with no consideration (gifts) are typically exempt. Government agencies and nonprofits may also be exempt depending on the type of transfer.

If you are transferring property into a trust to avoid probate, or if you are going through a divorce and the court orders property to change hands, the tax may not apply. However, exemptions are specific and must be documented. Your closing attorney will know whether your situation qualifies and will file the necessary paperwork with the register of deeds to claim the exemption.

If you think your transfer may be exempt, bring this up early with your attorney or closing agent. Claiming an exemption incorrectly can delay closing or create problems later, so it is better to verify before closing day.

What Happens at Closing

The closing process brings together the buyer, seller, lender (if there is a mortgage), and the closing agent or attorney. The closing agent prepares all documents, including the deed, and calculates all costs and credits. The Sellers Transfer Tax appears as a line item on the Closing Disclosure, which you receive at least three business days before closing.

On closing day, you review and sign the deed and other documents. The closing agent collects the transfer tax from your sale proceeds and submits it to the county register of deeds along with the recorded deed. Once the register confirms payment, the deed is recorded, and the property officially changes hands. The whole process typically takes one to two weeks from signing to recording.

If you are moving out of state and selling your South Carolina home, the same process applies. The tax is still owed, calculated the same way, and paid from your proceeds at closing.

Planning for Transfer Tax in Your Budget

When you list your home or make an offer to buy, factor the Sellers Transfer Tax into your financial planning. As a seller, the tax reduces your net proceeds—a $300,000 sale nets you $300 less before any other closing costs. As a buyer, you may negotiate with the seller to cover part or all of the tax, though this is a matter of local custom and negotiation.

Ask your real estate agent or attorney early in the process what the estimated transfer tax will be. They can calculate it based on the expected sale price and your county's rate. Include this in your closing cost estimate so there are no surprises at closing. If you are buying and the seller is covering the tax, make sure this is written into the purchase agreement.

Transfer tax is separate from property tax, income tax on the sale, and other closing costs like title insurance, attorney fees, and recording fees. Understanding each cost helps you plan your move without financial stress.

Frequently Asked Questions

Can the buyer pay the Sellers Transfer Tax instead of the seller?

Yes, if both parties agree. The purchase agreement can specify that the buyer will pay the tax, or that the cost will be split. This is negotiated between buyer and seller and is not required by law. Make sure whatever you agree to is written into the purchase agreement before closing.

What if I am transferring property to a family member as a gift?

Gifts are typically exempt from the Sellers Transfer Tax, but you must document that no money changed hands. Your closing attorney will file an affidavit with the register of deeds stating that the transfer was a gift. Without this documentation, the register may assume a sale occurred and require payment of the tax.

Do I owe the transfer tax if I sell my home and buy another one in South Carolina?

Yes. The tax applies to every sale, regardless of whether you are buying another property in the state. You owe tax on the sale of your old home and may owe it again on the purchase of your new home if you are the seller in that transaction. These are separate transactions with separate tax obligations.

How much does the transfer tax add to closing costs?

The amount depends on the sale price and your county's local rate. At the state rate of $0.50 per $500, a $200,000 sale costs $200 in transfer tax. A $400,000 sale costs $400. If your county adds a local tax, the total can be double. Ask your closing agent for a specific estimate based on your sale price and location.

Can I deduct the transfer tax on my income tax return?

The transfer tax is not deductible as a capital gains tax or income tax expense. It is a state transfer tax, separate from federal income tax. However, it may be added to your cost basis in the property if you are the buyer, which can affect your capital gains calculation if you sell later. Consult a tax professional about your specific situation.