One of the biggest financial perks of moving to South Carolina is the dramatic drop in property taxes. New Jersey’s effective property tax rate is about 2.2% – the highest in the nation. Illinois isn’t far behind at roughly 2.1%. New York averages around 1.6%, also well above the U.S. norm. By contrast, South Carolina’s property tax rate is only ~0.5%, among the lowest of all states. In practical terms, that difference is huge.

For example, on a $500,000 home, a New Jersey owner could owe about $11,000 in annual property taxes (at ~2.2%), whereas in South Carolina the bill might be around $2,500 (at ~0.5%). That’s a savings of over $8,000 per year every year just on property taxes.

Why are South Carolina property tax benefits so substantial? Read more on SC Property Taxes here. It comes down to how the state assesses owner-occupied homes favorably and simply overall lower tax rates. South Carolina consistently ranks in the bottom five for property tax burden, whereas New Jersey, Illinois, and New York perennially rank among the top handful. The chart above makes the contrast clear – New Jersey’s property tax rate is roughly four times higher than South Carolina’s. This means if you purchase real estate in the Lowcountry (say you’re eyeing Bluffton real estate or Hilton Head homes for sale), you’ll keep a lot more money in your pocket each year compared to a similarly valued property up north. South Carolina also offers homestead exemptions for seniors and other breaks that further sweeten the deal for those who retire in the state. In short, moving to South Carolina can drastically reduce your annual housing costs – without sacrificing the luxury lifestyle you seek.

Data takeaway: Property taxes on a median-priced home in South Carolina (around $236k) run only about $1,200 per year, versus $6,000 – $9,500 in New York or New Jersey where home values and tax rates are higher. This massive difference directly boosts your bottom line as a homeowner. South Carolina’s low property taxes are a prime reason it’s become a magnet for wealthy buyers looking to retire in the Lowcountry or simply reduce carrying costs on a second home.

Overall Cost of Living: Lowcountry Affordability vs. the Northeast

Overall cost of living index (2025, U.S. average = 100). South Carolina and Illinois are slightly below the national average cost, while New Jersey is ~15% above average and New York stands about 48% above average. Lower housing costs in SC drive much of its affordability.

Taxes aside, what about the day-to-day cost of living? Here, too, South Carolina shines. Everything from housing to groceries tends to cost less in the Palmetto State than in the Northeast. An index of overall living costs pegs South Carolina around 4% below the U.S. average (index ~95.9), whereas New Jersey is ~15% above average (114.6) and New York stands a whopping ~48% above average (148.2). Illinois’s cost of living is about 5-6% below average (94.4) despite its high taxes, thanks in part to lower housing costs outside Chicago. The upshot is that every dollar stretches further in South Carolina than it would in NY/NJ.

Housing is the biggest factor in these differences. The median home price in South Carolina is around $236,000, far less than New York’s (~$403,000) or New Jersey’s (~$428,000) median home values. That means you can obtain a larger or more luxurious home in the Lowcountry for a fraction of the price you’d pay in the New York metro area. Bluffton real estate, for example, offers spacious luxury homes at prices that look very attractive next to comparables in New Jersey’s suburbs. And beyond the purchase price, remember those carrying costs: insurance, maintenance, and especially property taxes are all lower when the underlying home value and tax rates are lower. It’s a compound win for your wallet.

Other living expenses — utilities, groceries, healthcare — also tend to be moderate in South Carolina and much closer to national averages. New York and New Jersey, by contrast, see higher prices across many of these categories (everything from $4 lattes to high auto insurance rates). Even sales taxes can be a bit higher up north: Illinois, for instance, has an average combined sales tax near 8.85% (among the highest in the US), and New York’s averages about 8.5% with local taxes, while South Carolina’s sales tax is 6% statewide (around 7%–8% with typical local add-ons). The difference shows up in your everyday bills. Overall, a family that might require, say, $120,000 to live comfortably in New Jersey could maintain a similar lifestyle on a significantly smaller income in South Carolina – possibly around 20% less, given the cost disparity. And compared to Manhattan or Long Island? South Carolina’s cost of living could be 30–50% lower. In other words, moving south isn’t just a change of scenery – it’s a pay raise in disguise through lower expenses.

Conclusion: A Wealth-Focused Move to the Lowcountry

Relocating from a high-tax, high-cost state to South Carolina can be a game-changer for your finances. The data paints a clear picture: South Carolina offers significantly lower property taxes, gentler income taxes, and a more affordable cost of living than New York, New Jersey, or Illinois. For a wealthy homebuyer or retiree, those savings can amount to tens of thousands of dollars a year – money that can be invested, used to upgrade your lifestyle, or simply enjoyed. It’s no wonder that so many financially savvy individuals choose to retire in the Lowcountry or purchase second homes here. They’re not only drawn by the region’s natural beauty and charm, but also by the concrete financial benefits we’ve detailed above.

In South Carolina’s Lowcountry, you truly get the best of both worlds: life’s luxuries at a lower price. You can own a stunning home in Bluffton or Hilton Head with minimal property tax, enjoy your retirement income without onerous state taxes, and pay less for everyday expenses – all while soaking in the sun and coastal lifestyle. If you’re considering heading south for a wealthier (and happier) future, the numbers strongly support that decision. Moving to South Carolina could save you thousands, and those savings start adding up from the moment you make the move. In our next installment, we’ll explore even more facets of Lowcountry life and real estate – but as far as the tax advantage goes, South Carolina is clearly a smart choice for the financially minded. Welcome to the Lowcountry, where your money works as hard as you do – and where you get to enjoy the rewards.

Sources: Recent tax data and cost-of-living statistics have been drawn from 2025 reports and databases for accuracy rocketmortgage.com worldpopulationreview.com paycor.com. These include the Tax Foundation, TurboTax/Intuit analysis, state revenue departments, and cost-of-living indices. All figures are current as of 2025 and illustrate the comparative landscape between South Carolina and the specified high-tax states.