Is Hilton Head Expensive? The Cost of Living
Housing is the big cost. Taxes, groceries and everyday bills are friendlier than most people expect.
- Biggest cost
- housing
- Typical house for sale
- about $1.59 million
- Typical condo for sale
- about $427,000
- Lower than most states
- taxes for retirees and homeowners
Yes, Hilton Head is expensive, and almost all of that is housing. The middle asking price of a house for sale on the island is about $1.59 million, and of a condo about $427,000. Rents are high for the region too. Day-to-day costs are closer to normal: groceries carry no sales tax, South Carolina does not tax Social Security, and a home you live in is taxed at a much lower rate than a second home. For many retirees, the lower taxes make up for part of the higher housing cost.
Home Prices on Hilton Head
Houses on Hilton Head are listed for a middle price of about $1.59 million, and condos and villas for about $427,000. Those are asking prices for the homes on the market now; homes usually sell for a little less. Prices vary a lot by neighborhood: oceanfront homes in Sea Pines and Palmetto Dunes cost far more than homes in the older neighborhoods off the beaches or on the mainland in Bluffton. See the Hilton Head real estate market for prices month by month.
Rent on Hilton Head
Year-round rentals are scarce on an island where many homes are rented by the week to visitors. The federal government’s fair market rent for a two-bedroom on Hilton Head is about $1,940 to $2,040 a month, depending on the ZIP code. That figure is set below the middle of the market, so most two-bedroom homes for rent ask more. Many people who work on the island live on the mainland, in Bluffton, Hardeeville or Ridgeland. See long-term rentals on Hilton Head.
Taxes on Hilton Head
Sales tax: 6%. Hilton Head adds no local sales tax to the state’s 6%. Hotel and rental stays are taxed more.
Groceries: no sales tax. Food you buy to cook at home is not taxed.
85 and older: shoppers 85 and over pay 1% less state sales tax.
Social Security: not taxed by South Carolina.
Property tax: a home you live in is assessed at 4% of its value, a second home or rental at 6%, and it also skips the school operating tax, so the bill on a primary home is far lower. See Beaufort County property taxes.
Utilities and Insurance
Palmetto Electric Cooperative supplies the island’s electricity, and water and sewer come from one of three public service districts, depending on where you live. Summer air conditioning is the biggest part of most power bills. Insurance costs more than inland: homeowners on the coast pay for wind coverage, and many homes need flood insurance. See Hilton Head utilities and insurance on Hilton Head.
Living on Hilton Head Island
About 38,000 people live on Hilton Head year-round, and the number swells in summer with visitors. Many residents are retirees, drawn by the beaches, the golf and the lower taxes. Much of the island lies inside gated communities, each with its own property owners’ association, which adds a yearly fee to the cost of owning a home. Compare the communities on our Hilton Head neighborhoods guide.
More on Living Here
Hilton Head home prices and price cuts from live MLS listings, the median asking price in every gated community, and what it costs to own.
A guide to Hilton Head Island's gated communities and neighborhoods — Sea Pines, Palmetto Dunes, Hilton Head Plantation, and more — plus nearby Bluffton.
Hilton Head long term rentals: houses, villas and condos for rent by the year, the local companies that rent them, and what to ask before you sign.
The Beaufort County Treasurer, Assessor and Auditor: the 4% and 6% rates, the January 15 due date, penalties and how to pay a Hilton Head tax bill.
Who supplies water, sewer, power, internet and TV on Hilton Head Island: the three PSDs, Palmetto Electric, Spectrum, Sparklight and an owner checklist.
Insurance agencies on Hilton Head Island for home, flood, auto and business cover, and how wind pool and flood insurance work on the coast.
Hilton Head Island's zip codes: 29928 for the south end and Sea Pines, 29926 for the north end, PO Box zips 29925 and 29938, and area codes 843 and 854.
Hilton Head Island is in Beaufort County, South Carolina. Where it is, its size and population, how it got its name, the bridge and what it is known for.
Frequently Asked Questions
Is Hilton Head expensive?
Yes, mainly for housing: the middle asking price of a house for sale on the island is well over $1 million. Everyday costs are closer to normal, and taxes are lower than in most states for retirees and people who own the home they live in.
What is the cost of living on Hilton Head?
Above average, because of housing and insurance. Groceries carry no sales tax, the sales tax is 6%, and South Carolina does not tax Social Security, which keeps everyday costs down.
How much is rent on Hilton Head?
The federal fair market rent for a two-bedroom on the island is about $1,940 to $2,040 a month by ZIP code, and most rentals ask more. Year-round rentals are scarce, so many workers live in Bluffton or Hardeeville.
Are property taxes high on Hilton Head?
Not for a home you live in. South Carolina assesses a primary home at 4% of its value instead of 6%, and a primary home skips the school operating tax, so owners who live here pay far less than owners of second homes.
Is Hilton Head a good place to retire?
Many people think so: no state tax on Social Security, no sales tax on groceries, a lower property tax on a home you live in, beaches and golf. The trade-off is the price of housing and insurance.
What is it like living on Hilton Head Island?
Quiet most of the year and busy in summer. About 38,000 people live here, many of them retirees, many in gated communities with their own owners’ associations, bike paths and beach access.
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