Georgetown County Just Approved a 1% Sales Tax. Here's What It Means for Your Property Taxes.

November 7, 2026

Most people don't get excited about a new sales tax. But Georgetown County's latest voter-approved tax comes with something property owners may appreciate: a credit against their property tax bills.

On November 3, 2026, Georgetown County voters approved a new 1% Local Option Sales Tax, commonly called LOST. The tax takes effect May 1, 2027, and 71% of the revenue collected must go toward property tax credits.

The remaining 29% will help fund county and municipal operations.

For homeowners in Pawleys Island, Litchfield Beach, Georgetown, and the Georgetown County portion of Murrells Inlet, this is worth paying attention to. And it isn't limited to people who live here full-time.

Second homes, investment properties, vehicles, and boats may also receive applicable property tax credits.

Here's how the new tax works, what the county estimates owners could save, and when those savings might begin appearing.

How Does Georgetown County's New 1% Sales Tax Work?

The Local Option Sales Tax adds one cent to every dollar spent on eligible taxable purchases in Georgetown County.

Spend $100 on eligible goods, and the additional tax is $1.

Unprepared groceries, prescription medications, gasoline, and other purchases exempt from the applicable state sales tax are also exempt from this additional tax.

One important distinction: this is a new sales tax, separate from the county's previously approved 1% capital projects sales tax.

The purpose of the new Local Option Sales Tax is different. Under South Carolina law, its revenue is divided between property tax relief and local government funding.

Georgetown County previously estimated that the tax could generate approximately $12 million annually.

At that level, roughly $8.52 million would be allocated to property tax credits, with approximately $3.48 million distributed for local government operations.

Those are projections, not guaranteed collections.

An interesting part of the arrangement is that the sales tax is collected from eligible purchases made by residents and visitors alike. Someone vacationing in Pawleys Island or stopping for dinner in Georgetown contributes to the same revenue stream.

You can read the county's official announcement confirming the referendum's approval.

How Much Could Georgetown County Homeowners Actually Save?

This is where the numbers become more interesting.

Before the election, Georgetown County released estimated property tax credits to demonstrate what the new program could mean for different properties.

For a qualifying owner-occupied residence, the county published the following preliminary estimates per $100,000 of appraised value:

For example, a primary residence with an appraised value of $400,000 in unincorporated Georgetown County could see an estimated annual credit of approximately $916 under the county's full-year projection.

That estimate is based on the county's published assumptions. The actual credit will depend on collected revenue, applicable property values, tax districts, and the county auditor's calculations.

The county also estimated that the credit could represent roughly a 22.6% reduction in the property tax bill for an owner-occupied home in unincorporated Georgetown County.

That's a projected reduction in the applicable tax bill, not a 22.6% reduction in the home's value or its assessment ratio.

And it won't look the same for every property.

What About Second Homes in Pawleys Island and Litchfield Beach?

Georgetown County has a considerable second-home market, particularly around Pawleys Island, Litchfield Beach, and the surrounding coastal communities.

Many buyers maintain their primary residence elsewhere while owning a vacation home or investment property along the Grand Strand.

Under South Carolina law, qualifying primary residences are generally assessed at 4%, while second homes and investment properties are typically assessed at 6%.

The new Local Option Sales Tax doesn't change those assessment classifications.

Instead, it establishes a separate property tax credit that can apply to eligible properties, including second homes and investment properties.

That's an important distinction for owners who aren't eligible for South Carolina's 4% legal residence classification.

It also means buyers should continue to calculate their potential taxes using the appropriate assessment ratio rather than assuming the new credit will make a second home equivalent to a primary residence for tax purposes.

For buyers researching the area, it's worth understanding the geography too. A Pawleys Island mailing address doesn't necessarily mean a property is located within the Town of Pawleys Island itself.

I've written about that distinction in Most "Pawleys Island" Listings Aren't Actually on Pawleys Island.

Location matters when looking at property taxes, zoning, municipal services, and regulations.

When Does the New Georgetown County Sales Tax Start?

The tax officially takes effect on May 1, 2027.

However, homeowners shouldn't expect an immediate reduction in their property tax bills on that date.

The county has explained that the first property tax credits will reflect only a partial year of sales tax collections.

Future credits will be calculated using revenue collected during the applicable periods and distributed according to South Carolina law.

In practical terms, the first credit may be smaller than the county's full-year projections.

Georgetown County has said it will release additional details about the collection process and credit timelines as implementation moves forward.

For now, homeowners should avoid building an exact projected savings amount into their annual budgets until the county publishes the final calculation.

Could This Affect Real Estate Decisions in Georgetown County?

Property taxes are one of the recurring costs I discuss with buyers considering a move to the Grand Strand.

Someone relocating from New York or New Jersey may be accustomed to a very different property tax structure. A buyer considering a second home in Pawleys Island may be comparing the cost of ownership with a home in Horry County.

Even within Georgetown County, two similarly priced properties can have different tax obligations based on classification, assessment history, and location.

The new credit introduces another factor to consider, although it doesn't replace the existing tax calculations.

For buyers, the question isn't simply what the current owner pays. It's what the property may cost to own after the purchase, including any applicable changes in assessment and future credits.

There's no reliable basis yet to conclude that this new tax will increase home prices or attract a particular number of additional buyers.

What we do know is that Georgetown County will now have a property tax credit mechanism funded by the new sales tax.

That makes it relevant to anyone comparing long-term ownership expenses across coastal South Carolina.

Looking at Homes but Not Ready to Buy? Estimate Your Taxes First.

You don't have to wait until you're under contract to research property taxes.

Georgetown County offers two useful tools.

Georgetown County Property Tax Calculator

This calculator estimates property taxes based on the applicable taxable capped value, legal residence status, and tax district.

It's designed primarily for desktop use. The county specifically instructs users not to substitute market value for the taxable capped value requested.

Georgetown County Local Option Sales Tax Relief Estimator

This separate estimator was created to help taxpayers understand potential credits from the newly approved sales tax.

It allows users to select property types, tax districts, and values to view projected relief.

The estimates are informational, and actual credits will depend on future collections and official calculations.

For anyone comparing a primary home in Georgetown with a vacation property in Litchfield or Pawleys Island, reviewing both tools can provide useful context.

Frequently Asked Questions About Georgetown County's New Sales Tax

Did Georgetown County approve the 1% sales tax?

Yes. Voters approved the Local Option Sales Tax referendum on November 3, 2026. Georgetown County confirmed the results in its November 4 announcement.

When does the new 1% sales tax begin?

May 1, 2027. The first property tax credits will be based on a partial year of collections, so they may differ from the county's full-year projections.

Will Pawleys Island homeowners receive property tax relief?

Eligible property owners in Georgetown County may receive credits under the program. The amount depends on the property's applicable tax classification, valuation, taxing district, and future revenue calculations.

Do second homes and vacation rentals qualify?

The credit program extends to eligible second homes and rental properties, not just qualifying primary residences. Specific credit amounts will vary.

Will the 1% tax apply to groceries?

Unprepared groceries and other items exempt from the applicable state sales tax remain exempt from the new Local Option Sales Tax. Taxable prepared food and other eligible purchases may be subject to it.

Does this mean Georgetown County property taxes will decrease by 71%?

No. The 71% figure represents the share of sales tax revenue allocated to the Property Tax Credit Fund. It does not mean individual property tax bills decrease by 71%.

Will the tax apply in Myrtle Beach?

The new Local Option Sales Tax applies within Georgetown County. Properties in Horry County, including Myrtle Beach, are not covered by Georgetown County's new tax credit program.

Can I estimate my future property taxes before buying?

Yes. Georgetown County provides an online property tax calculator and a separate Local Option Sales Tax relief estimator. Both can help you research ownership costs, although neither guarantees a future tax bill.

What This Means for Coastal Property Owners

Georgetown County's new sales tax is scheduled to begin in May 2027, with property tax credits following the applicable revenue collection and distribution process.

For residents, second-home owners, and investors, the important part is understanding how the credit fits into the broader cost of ownership.

Property taxes deserve attention before buying a home, but they should also be reviewed alongside insurance, HOA obligations, maintenance, and the property's intended use.

As a second-generation Myrtle Beach Realtor, I help buyers understand those details throughout the Grand Strand, including the communities south of Myrtle Beach where Horry and Georgetown Counties meet.

If you're considering a move to Pawleys Island, Litchfield Beach, Murrells Inlet, or Georgetown, I'm always happy to help you explore the local market and understand how the ownership costs compare.

Explore more coastal real estate insights at Myrtle Beach Megan.

Updated November 7, 2026. Tax estimates are based on Georgetown County's published projections and may change. This article is for general information and is not tax or legal advice. Consult the appropriate county office or a qualified tax professional for property-specific guidance.