SC boat taxes are getting cut. Here's what to know

South Carolina boat owners are about to see a significant tax break after lawmakers gave final approval to a bill slashing the state’s watercraft tax rate. The measure was signed by Gov. Henry McMaster on April 30, 2026.

FULL STORY: Taxes for SC boat owners set to drop. How long will it take to see the change?

Here are key takeaways:

• The tax rate on recreational watercraft will drop from 10.5%, which had been among the highest in the country, to 6%. The bill also eliminates a separate tax on outboard motors that boat owners had called double taxation.
• The changes will be phased in over three years to give local governments time to prepare. Counties had raised concerns about lost revenue for first responders, schools and public infrastructure.
• Gettys Brannon, president and CEO of the S.C. Boating and Fishing Alliance, said the change will save South Carolina taxpayers more than $40 million.
• A proposal from state Sen. Brad Hutto, D-Orangeburg, to create a state-guaranteed “backstop” for lost local revenue was voted down in the final version.

The summary points above were compiled with the help of AI tools and edited by journalists. The full story in the link at top was reported, written and edited entirely by journalists.