Columbia, SC – The South Carolina Senate on Thursday passed a bill aimed at providing property tax relief to homeowners, particularly seniors, by expanding the state’s homestead exemption. The move, which supporters say will assist residents stay in their homes amid rising property values, now heads to the House for consideration. The legislation is projected to cut property taxes by more than $250 million statewide.
Senate Bill 768, approved after debate and amendments, would significantly increase the homestead exemption – the amount of a home’s value shielded from property taxes. Currently, homeowners age 65 or older with one year of residency qualify for an exemption on the first $50,000 of their home’s fair market value. The bill proposes tripling that exemption to $150,000 for those who qualified in the 2025 tax year. This expansion of the homestead exemption is a key step in addressing concerns about affordability for long-time South Carolina residents.
However, the path to the expanded exemption isn’t uniform. Homeowners who did not qualify for the $50,000 exemption in 2025 would face stricter residency requirements to receive the larger benefit. A ten-year residency requirement would be needed to qualify for the full $150,000 exemption, while a five-year residency would unlock a $75,000 exemption. Those with more than one year but less than five years of residency would remain eligible for the original $50,000 exemption. Importantly, homeowners already approved for the 2025 exemption will not need to reapply to receive the increased benefit.
What’s Driving the Change?
The push for property tax relief comes as home values across South Carolina have steadily increased, putting a strain on homeowners, especially those on fixed incomes. Rising assessments have prompted calls for action from senior citizens concerned about being priced out of their homes. The South Carolina Policy Council highlighted the growing concerns among residents 65 and older.
Legislative Path and Next Steps
The bill’s journey through the Senate wasn’t without debate. Amendments were proposed and either adopted or rejected during committee and floor discussions. S.768 received second and third readings, signifying its passage in the Senate on February 19, 2026. The legislative history, detailing the amendments and votes, is available on the South Carolina Legislature Online website.
Now, the bill moves to the House of Representatives. If the House passes the bill without any amendments, it will go directly to Governor Henry McMaster for his signature. However, if the House chooses to amend the legislation, the Senate will need to agree to those changes. If disagreements arise, a conference committee – comprised of members from both chambers – would be formed to negotiate a compromise. Failure to reach a compromise would effectively stall the bill’s progress.
Key Supporters and Concerns
Senator Harvey Peeler, Chairman of the Senate Finance Committee, and Senator Danny Verdin were instrumental in moving the bill forward, according to statements released following the vote. While the focus of this bill is on providing relief to seniors, Chairman Peeler has also emphasized the need for broader tax reform to benefit all South Carolina citizens. The current measure is viewed as a first step in that direction.
The projected $250 million in property tax cuts represents a significant financial impact. The long-term effects of the expanded exemption on local government budgets and revenue streams will likely be a topic of discussion as the bill progresses through the legislative process.
This legislation comes at a time when many South Carolinians are grappling with the rising cost of living. The expansion of the homestead exemption offers a potential lifeline for seniors, allowing them to remain in their homes and maintain their financial stability. The outcome in the House will determine whether that relief becomes a reality for homeowners across the state.
The next key date to watch is the date the House takes up Senate Bill 768. Updates on the bill’s progress can be found on the South Carolina Legislature Online website.
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