Thinking about a weekend place on Lake Wylie? One number catches many buyers by surprise: the 6% assessment on non‑primary homes in South Carolina. If you plan to use the property as a second home, that assessment can raise your yearly tax bill and your monthly payment more than you might expect. In this guide, you’ll see exactly how the 6% flows through to your taxes, how it affects your loan qualification, and a simple worksheet to estimate monthly carry. Let’s dive in.
What the 6% assessment means
South Carolina converts a home’s fair market value into a taxable amount using an assessment ratio. A primary residence is typically assessed at 4 percent, while a non‑primary home, such as a second home, is typically assessed at 6 percent. That higher ratio increases the assessed value, which then multiplies by your local millage to create a larger tax bill.
Many owner‑occupied credits and homestead exemptions apply only to a primary residence. Second homes usually do not qualify for those. Also note that properties inside town limits, such as parts of Tega Cay, may include additional municipal millage or special district charges.
How to estimate your Lake Wylie tax
You can model your annual and monthly taxes in a few quick steps. Use your contract price or appraisal for fair market value, apply the correct ratio, then multiply by your combined millage.
The simple math
- Determine fair market value (FMV): FMV = $________
- Choose the assessment ratio:
- Primary residence: 4% (0.04)
- Second home: 6% (0.06)
- Compute assessed value: Assessed Value = FMV × assessment ratio
- Find combined local millage (M) for the parcel, then convert to a decimal: millage decimal = M ÷ 1000
- Compute annual tax: Annual Tax = Assessed Value × (M ÷ 1000)
- Convert to monthly: Monthly Tax = Annual Tax ÷ 12
Quick worksheet
- FMV: $_____________
- Assessment ratio (check one): 4% [ ] 6% [ ]
- Assessed value (FMV × ratio): $_____________
- Combined millage (M): ______ mills
- Annual tax (Assessed value × M ÷ 1000): $_____________
- Monthly tax (Annual ÷ 12): $_____________
Hypothetical example
- FMV = $500,000
- Primary at 4%: Assessed value = 500,000 × 0.04 = $20,000
- Second home at 6%: Assessed value = 500,000 × 0.06 = $30,000
- Suppose combined millage M = 200 mills, which is 0.200 as a decimal
- Primary annual tax = 20,000 × 0.200 = $4,000, or $333.33 per month
- Second home annual tax = 30,000 × 0.200 = $6,000, or $500.00 per month
- Difference = $166.67 per month
This difference is the direct impact of the 6% ratio when everything else is the same.
Why millage matters in York County
Your combined millage is the sum of county, school district, municipal, and special district mills. It changes year to year and varies by location around Lake Wylie. For precision, use the property’s recent tax bill or contact the York County Assessor or Treasurer for the parcel’s current millage. If a property sits within a municipal boundary or special district, your combined millage can be higher than a nearby unincorporated area.
How the 6% changes your mortgage
Lenders calculate your monthly housing expense using PITI: principal, interest, taxes, and insurance. Property taxes are the “T,” and lenders include either the current bill or a well‑supported estimate. When you buy a second home in South Carolina, the 6% assessment often results in a higher monthly tax than an identical primary residence would carry.
Two key ratios drive most loan approvals:
- Front‑end DTI (housing ratio): monthly PITI divided by gross monthly income.
- Back‑end DTI: total monthly debt, including PITI, divided by gross monthly income.
A higher monthly tax increases both ratios, which can limit the loan size you qualify for at the same income level. Here is a simple illustration using the tax example above.
DTI impact example (hypothetical)
- Purchase price: $500,000
- Loan: 80% LTV, $400,000 at 6% interest
- Estimated principal and interest: about $2,398 per month (30‑year fixed example)
- Insurance and HOA: $200 per month (example)
- Primary tax: $333 per month, total housing = $2,931
- Second home tax: $500 per month, total housing = $3,098
- If gross monthly income = $10,000
- Primary housing ratio ≈ 29.3%
- Second home housing ratio ≈ 31.0%
That tax difference alone raises the front‑end DTI by about 1.7 percentage points in this scenario. When a buyer is near a lender’s threshold, that can be the difference between approval and a reduced price target.
Reserve requirements and program notes
Second‑home loans often carry different reserve requirements than primary homes. Lenders may want to see additional months of PITI in reserves, and underwriting standards for second homes can vary by program. Ask your lender how they will document taxes, whether they will rely on the prior year’s bill or use an estimate based on assessed value, and how they treat second homes compared with investment properties.
Budgeting beyond taxes on Lake Wylie
Monthly carry is more than taxes and principal and interest. Waterfront homes can have unique costs that add up. Build them into your worksheet so you see the full picture.
- Homeowner’s insurance: Waterfront coverage can cost more due to replacement cost and liability exposures.
- Flood insurance: Required only if your lender and flood zone trigger it. Check the property’s elevation and flood designation.
- HOA or community fees: Many lake communities include amenities, shoreline operations, or security.
- Maintenance and utilities: Dock and bulkhead upkeep, erosion control, landscaping, pest control, seasonal opening and closing, and year‑round utilities.
- Special assessments: Fire, road, drainage, or lake association charges may apply beyond standard millage.
- Rental considerations: If you plan to rent the home part‑time, your lender may require different documentation. Tax treatment can also change when you have rental income.
A simple way to budget is to add these lines to your monthly estimate:
- Property tax at the 6% assessment
- Homeowner’s insurance (annual premium divided by 12)
- Flood insurance if applicable (annual divided by 12)
- HOA dues
- Maintenance reserve (many owners use 1% of FMV per year divided by 12, or a custom estimate based on the property)
- Utilities and recurring services
Step‑by‑step prep for Lake Wylie buyers
Use this checklist before you write an offer so your numbers are accurate and lender‑ready.
- Confirm the exact taxing jurisdiction for the parcel. Identify whether it sits inside a municipal boundary or special district.
- Obtain the most recent tax bill from the seller, listing materials, or the York County Assessor or Treasurer.
- If the bill is not current or status changed, estimate taxes using FMV, the 6% ratio, and the current combined millage for the parcel.
- Build a complete PITI(A) worksheet:
- Principal and interest
- Property taxes
- Homeowner’s insurance
- Flood insurance if needed
- HOA and recurring fees
- Maintenance and utilities
- Calculate front‑end and back‑end DTI with your estimated monthly housing expense to gauge qualification risk.
- Discuss with your lender how they will treat the property, the reserves they require, and whether they will use last year’s tax bill or an assessed‑value estimate.
- If taxes push your DTI over the line, consider a larger down payment, a lower rate product, paying off other debts, or a property within a different taxing area.
Local sources to verify numbers
- South Carolina Department of Revenue for assessment ratio guidance and current rules.
- York County Assessor’s Office for parcel search, assessed values, and tax history.
- York County Treasurer or Auditor for combined millage and the annual tax calendar.
- Municipal websites for towns around Lake Wylie, such as Tega Cay, for municipal millage and special districts.
- Fannie Mae and Freddie Mac selling guides for second‑home underwriting and reserve expectations.
- CFPB or HUD for consumer information on DTI and mortgage basics.
- IRS publications for general second‑home tax topics.
Bottom line for Lake Wylie second homes
On Lake Wylie, the 6% assessment on second homes is not just a line on a bill. It increases the assessed value, which boosts your tax amount and your monthly housing cost. Lenders include that higher tax in PITI, so it also nudges your DTI and can influence your maximum budget. When you model the math with the right millage and add waterfront‑specific costs, you will make a clearer, more confident offer.
If you want help running the numbers for a specific Lake Wylie address and aligning them with lender expectations, connect with a local advisor who understands lakefront ownership and second‑home financing. Reach out to the team at Unknown Company to walk through your worksheet and explore smart next steps.
FAQs
What is the 6% property tax for South Carolina second homes?
- The state typically assesses non‑primary residences at 6 percent of fair market value versus 4 percent for primary residences, which increases the taxable base and the annual bill.
How do I find the millage rate for a Lake Wylie home in York County?
- Use the property’s recent tax bill or contact the York County Assessor or Treasurer to confirm current combined millage for that parcel and taxing district.
How does the 6% assessment change my debt‑to‑income ratio?
- The higher tax raises your monthly PITI, which increases both front‑end and back‑end DTI. That can lower the loan amount you qualify for at the same income.
Do second homes in York County qualify for primary‑residence credits?
- Many owner‑occupied credits and exemptions apply only to primary residences. Second homes usually do not receive those benefits.
Will reserve requirements be higher for a Lake Wylie second home loan?
- Lenders often require more months of PITI in reserves for second homes compared with primary residences. Requirements vary by program and lender.
Do homes inside Tega Cay or other towns around Lake Wylie pay more tax?
- Properties inside municipal boundaries may have additional municipal millage or special district levies, which can increase the combined rate relative to nearby unincorporated areas.
