Disabled Veteran property tax exemption in South Carolina

By Mike Certo, NMLS #260555 — Updated June 2026

Key takeaways

Under SC Code §12-37-220, a Veteran rated 100% permanent-and-total service-connected disabled (or determined paraplegic/hemiplegic from a service-connected condition) pays no property tax on a primary residence plus up to 5 acres — with no assessed-value cap, unlike most states' partial-tier caps.
The exemption also covers up to 2 private passenger vehicles for the Veteran; an unremarried surviving spouse who resides in and owns the home keeps the real-property exemption but is limited to 1 vehicle under the same statute.
A 2024 statutory expansion lets the exemption start the year the disability determination occurs (not the year of application) and lets a surviving spouse claim it even if the Veteran never applied — but retroactive claims are capped, so a 2025 application reaches back only to 2023 at the earliest.
Apply through the SC Department of Revenue's MyDORWAY portal or Form PT-401-I with your VA award letter; there is no filing deadline and the exemption does not expire once granted.
A 2025-2026 bill (H.4600/H.4700) would extend a prorated exemption to Veterans rated below 100%, but as of July 2026 it is still in House Ways and Means Committee, not law — South Carolina's rule today remains all-or-nothing at the 100% P&T threshold.

Program figures verified July 2026 — details change; confirm your scenario with us.

South Carolina fully exempts the home and up to five acres from property tax for Veterans rated 100% permanent-and-total (§12-37-220) — no value cap, and the bill goes to zero. Qualifying Veterans also get two vehicles exempted. Applications run through the state Department of Revenue's MyDORWAY portal, with no filing deadline. This page walks through who qualifies and how to apply.

How South Carolina's disabled Veteran property tax exemption works

South Carolina provides a generous structural exemption. The homestead of a 100% disabled Veteran is exempt from all property taxation.

100% disability rating or specific conditions

Veterans rated 100% permanently service-connected disabled, or those determined paraplegic or hemiplegic from a service-connected condition, receive a full property tax exemption on the homestead. The exemption transfers to a surviving spouse.

Combination with general homestead exemption

The disabled Veteran exemption supersedes the general residential homestead exemption when applicable. Veterans rated under 100% should look at the general homestead exemption (available to anyone age 65 or older).

How to apply

Apply with the South Carolina Department of Revenue using Form PT-401-I. Submit VA disability documentation. The application can be filed any time but applies starting with the next tax year.

How this fits with your VA loan

When you buy a home in South Carolina with a VA loan, your lender estimates property tax as part of your monthly payment (the T in PITI). If you qualify for the disabled Veteran exemption, that monthly tax escrow drops or zeroes out — which lowers your full monthly payment and improves your debt-to-income ratio. Some lenders are willing to use the post-exemption tax figure during underwriting; others want you to qualify on the pre-exemption number. Mike can structure this correctly during pre-approval so you do not lose buying power.

Common questions

Do I need to be 100% disabled to qualify?

South Carolina fully exempts the homestead for Veterans rated 100% service-connected disabled or paraplegic. If you are rated below 100% in South Carolina, check the detail above — some states provide graduated relief at lower ratings.

What if my disability rating changes?

Rating changes can affect eligibility. If you become rated 100% after buying, you can apply for the exemption going forward (not retroactively in most cases). If your rating decreases below the qualifying threshold, the exemption ends.

Does the exemption transfer if I sell and buy a new home?

You reapply when you move: the exemption follows your primary residence, so file a new application with the SCDOR (MyDORWAY or Form PT-401-I) for the new home. Your county then applies it to the bill.

What about my spouse if I pass away?

South Carolina allows the surviving spouse to continue the exemption under specific conditions — see the detailed section above. Estate planning around this benefit is worth discussing with a South Carolina attorney before any major decisions.