custom home in Myrtle Beach SC

Building a custom home is an exciting journey. But, it comes with its own set of challenges, especially regarding property taxes. When purchasing a pre-owned home, historical tax figures can guide you.

However, constructing a new home requires a deeper understanding of how property taxes are calculated and managed. This guide will clarify the key aspects of property taxes, helping you prepare financially for your dream home.

Understanding Custom Home and Property Taxes

Regardless of where you build, paying property taxes is a requirement. However, it’s important to note that tax rates can vary significantly based on local jurisdictions. Generally, property taxes are assessed by local governments while also considering state and federal factors.

A primary element in determining property tax is the millage rate. It is the tax due for every $1,000 of assessed property value. For example, if your property is assessed at $200,000 and the millage rate is 1%, you’ll pay $2,000 in taxes. Additionally, you might encounter extra levies from local school districts or municipalities. For instance, if a school district charges 1% and your municipality adds 0.5%, your total tax would increase to approximately $5,000.