Buying a Second Home in Myrtle Beach? There's a Property Tax Exemption Worth Knowing About.

A vacation home in Myrtle Beach can come with a considerably different property tax bill than a primary residence just down the street.

Most buyers who have researched South Carolina real estate know about the state's 4% assessment ratio for qualifying primary residences and 6% ratio for second homes and investment properties.

What fewer people realize is that certain properties taxed at 6% may qualify for a separate exemption that reduces the value used to calculate their property taxes.

It's called the Assessable Transfer of Interest exemption, commonly referred to as the ATI exemption.

Under South Carolina law, qualifying property owners may receive a reduction of up to 25% of the property's ATI fair market value, subject to important limitations.

For someone purchasing a vacation home in North Myrtle Beach, an investment condominium in Surfside Beach, or a second residence in Pawleys Island, this is worth understanding before making assumptions about the annual cost of ownership.

Why Second Homes Are Taxed Differently in South Carolina

South Carolina uses assessment ratios to determine the taxable assessed value of real estate.

Qualifying primary residences generally receive a 4% assessment ratio, along with certain additional tax benefits. Second homes, vacation properties, and investment properties generally fall under the 6% classification.

Consider a property valued at $500,000.

At the 4% assessment ratio, its assessed value would be $20,000.

At the 6% assessment ratio, its assessed value would be $30,000.

Those figures aren't the actual tax bills. They're part of the calculation used with local millage rates, credits, and exemptions.

Qualifying primary residences also benefit from relief from certain school operating taxes, which can make the difference between the two classifications even more significant.

For buyers considering a second home along the Grand Strand, the 6% classification belongs in the ownership budget from the beginning.

But the state also provides a potential tax benefit for certain properties within that classification.

What Is South Carolina's 25% ATI Exemption?

ATI stands for Assessable Transfer of Interest.

In simple terms, certain transfers of property ownership trigger a reassessment of the property's fair market value for tax purposes.

A real estate sale is a common example, although not every transfer qualifies.

When a property is sold, the county may establish a new fair market value for tax purposes. If that value has increased, the new owner may face higher property taxes than the previous owner.

South Carolina Code Section 12-37-3135 creates a partial exemption for qualifying properties subject to the 6% assessment ratio.

The exemption can reduce the ATI fair market value used in the property tax calculation by as much as 25%.

However, the resulting value cannot fall below the applicable current fair market value established under the statute.

That limitation is important because the benefit isn't necessarily the full 25%, and some properties won't receive a reduction at all.

The exemption affects the value used for taxation. It is not a 25% discount on the final property tax bill.

What Could the ATI Exemption Actually Save?

Imagine you're purchasing a second home in Myrtle Beach.

The property's current fair market value on the county's records is $350,000. Following a qualifying transfer, the county establishes a new ATI fair market value of $500,000.

Without the exemption, that new $500,000 valuation may form the basis for the property's assessment.

Here's how the ATI exemption could change the calculation.

In this simplified example, the taxable valuation basis could be reduced from $500,000 to $375,000.

At the 6% assessment ratio, that would mean an assessed value of $22,500 instead of $30,000.

Local millage rates would then be applied to determine the applicable tax.

The resulting annual savings depend on the property's location and the rates used by the relevant taxing authorities.

Now consider the same property with a previous current fair market value of $425,000.

Although 75% of the new $500,000 ATI value is $375,000, the exemption cannot reduce the valuation below the applicable $425,000 floor. The value used would therefore be $425,000 rather than $375,000.

This is why the exact savings cannot be calculated from the purchase price alone.

Which Properties May Qualify?

The ATI exemption is associated with properties assessed at the 6% ratio, but that classification alone does not establish eligibility.

Generally, qualifying properties must meet requirements that include:

• The property was already subject to property taxation before the qualifying transfer.
• The property was assessed at 6% before the transfer and remains under the 6% classification.
• A qualifying assessable transfer of interest occurred after 2010.
• The applicable ATI fair market value increased relative to the prior value in a way that makes the exemption beneficial.
• The property owner or authorized agent submits the required notification or application within the statutory deadline.

The exemption may be relevant to eligible second homes, vacation properties, investment properties, and commercial real estate.

One particularly important detail is the property's classification before the sale.

For example, purchasing a home that was previously the seller's 4% primary residence and converting it to a 6% vacation home doesn't necessarily qualify for the ATI exemption.

The applicable ownership history and assessment classification must be reviewed.

A property previously held as a 6% second home or investment property may present a different situation.

The county assessor makes the eligibility determination.

The Application Deadline Is Earlier Than Many Buyers Expect

South Carolina's ATI exemption is not something owners should assume the county will automatically apply following a purchase.

State law requires the property owner or authorized agent to notify the assessor before January 31 of the tax year for which eligibility is first claimed.

Horry County's application states that it must be submitted before January 31.

Georgetown County's published application specifies on or before January 30.

Although the dates are close, buyers should follow the requirements of the county where their property is located and verify the applicable tax year with the assessor.

The 2026 tax-year application period has already passed as of November 2026. Owners who believe they qualify for a future tax year should contact the county assessor to confirm whether and when they may file.

Submitting the application doesn't guarantee approval.

The county must verify the property classification, relevant valuation history, and eligibility requirements.

How to Apply in Horry County

For properties in Myrtle Beach, North Myrtle Beach, Conway, Carolina Forest, Surfside Beach, and other Horry County communities, the application is handled by the Horry County Assessor's Office.

The form is titled Commercial Real Property Tax Exemption, but qualifying non-primary residential properties may also fall within the statute.

Homeowners can download the application directly from the county's website.

Horry County Commercial ATI Exemption Application (PDF)

The application requests information including:

• Property owner's name
• Property identification number (PIN)
• Mailing address
• Property address
• Current property classification
• Applicable tax year
• Owner's signature and contact information

The county determines the applicable ATI fair market value, exemption value, and taxable valuation.

Horry County Assessor's Office

1301 Second Avenue, Suite 1C08
Conway, SC 29526
843-915-5040

Additional resources are available through the Horry County Assessor's Office.

What About Georgetown County?

Properties in Pawleys Island, Litchfield Beach, DeBordieu, Georgetown, and the Georgetown County portion of Murrells Inlet are handled by the Georgetown County Assessor's Office.

Georgetown County provides its own ATI 6% Exemption application.

Georgetown County ATI Exemption Application (PDF)

The county requests the property owner's information, tax map number, year of sale, and assessment ratio at the time of transfer.

Georgetown County Assessor's Office

129 Screven Street
Georgetown, SC 29440
843-545-3017

The distinction between counties matters along the Grand Strand. A Murrells Inlet mailing address, for example, doesn't necessarily establish which county administers the property's taxes.

Always verify the actual county jurisdiction rather than relying solely on a mailing address.

Why the Previous Owner's Property Tax Bill Can Be Misleading

Imagine touring two vacation condominiums in North Myrtle Beach.

They're in comparable buildings, have similar square footage, and are listed at nearly identical prices.

Yet one listing shows annual property taxes substantially higher than the other.

That difference may reflect when each property was purchased, its last reassessment, the previous owner's classification, or whether an exemption was applied.

An older tax assessment may be based on a valuation that doesn't reflect the current purchase price.

A recent sale could trigger a different taxable value.

And the previous owner may have exemptions or circumstances that won't apply to the next purchaser.

This is why the tax history shown on a real estate listing is useful background, but shouldn't be the sole basis for estimating future ownership costs.

When evaluating a coastal property, it's worth reviewing the county's assessment records and understanding how a purchase could affect the taxable valuation.

Researching Properties but Not Ready to Buy?

Both Horry County and Georgetown County provide online property tax calculation tools that can help prospective buyers estimate annual taxes before purchasing.

For Horry County properties, use the Horry County Property Tax Estimator.

For Georgetown County properties, use the Georgetown County Property Tax Calculator.

These tools can help you compare the potential ownership costs of homes in different locations.

Be mindful of the value each calculator requests. Georgetown County's calculator calls for the appropriate taxable capped value rather than simply the advertised listing price.

Also, don't assume the calculator automatically accounts for a possible ATI exemption.

If you're considering a particular property, contact the county assessor to discuss the likely post-transfer classification and valuation before treating any estimate as final.

Common Questions About the ATI Exemption

Does every Myrtle Beach second home qualify for the 25% ATI exemption?

No. Eligibility depends on the property's prior and current assessment classification, qualifying transfer history, valuation, and timely application. Not every property assessed at 6% qualifies.

Can a vacation rental qualify?

Potentially. A qualifying vacation rental may be assessed at 6% and meet the statutory requirements. The intended rental use alone does not establish eligibility.

Is the exemption automatically applied after closing?

No. Owners or their authorized agents must notify the applicable county assessor within the required timeframe.

Do I have to apply every year?

Generally, no. Once the exemption is approved, South Carolina law does not require repeated notification by the same owner while the property remains subject to the 6% assessment ratio.

What happens if I convert my second home into my primary residence?

If the property qualifies for and receives the 4% legal residence classification, the ATI exemption no longer applies. Horry County's application also explains that returning to the 6% classification later generally doesn't restore the exemption without another qualifying transfer.

Can I qualify if I'm buying from someone who used the property as a primary residence?

The statutory rules generally require 6% classification before and after the qualifying transfer. A purchase from a 4%-classified owner may not qualify, even if the new buyer intends to use the property as a second home. Confirm the specific property's history with the county assessor.

Does a 25% ATI exemption mean my property tax bill decreases by 25%?

No. The exemption adjusts the valuation used to calculate property taxes, subject to a floor. Actual savings depend on the resulting taxable value and applicable tax rates.

Can I estimate the tax implications before purchasing?

Yes. Start with the county's online calculator and available property records. For a more accurate assessment involving a possible ATI exemption, discuss the specific property with the county assessor or a qualified tax professional.

Understanding the True Cost of a Coastal Second Home

The appeal of a second home along the Grand Strand is easy to understand. A place for long weekends, summer traditions, extended family visits, or simply having somewhere familiar to return to throughout the year.

The financial side deserves just as much consideration.

Property taxes are only one part of the ownership picture. Insurance, HOA obligations, maintenance, rental restrictions, and long-term property improvements can all influence whether a particular home makes sense.

For buyers exploring investment or vacation properties near the ocean, it's also worth understanding what affects flood insurance costs on the coast.

The ATI exemption is one of those lesser-known South Carolina property tax provisions that deserves attention when evaluating a qualifying purchase.

As a second-generation Myrtle Beach Realtor, I believe understanding these details is part of making an informed real estate decision.

Whether you're considering a beachfront condominium, a low-maintenance vacation home, or an investment property along the Grand Strand, I'm always happy to help you explore the market and better understand the costs associated with ownership.

Learn more about working with me at Myrtle Beach Megan.

Information current as of November 2026. This article provides general information and does not constitute tax or legal advice. Eligibility, valuations, applications, and deadlines should be verified directly with the appropriate county assessor or a qualified tax professional.