Does New Hampshire Have Property Tax?

Yes, New Hampshire has a property tax. It is the primary method used to fund local governments, including towns, cities, counties, and school districts. The state’s reliance on this tax is notable because it does not levy a general sales tax or a personal income tax on wage and salary income, which often results in higher property tax burdens for residents. The property tax is the most prominent and directly felt tax by homeowners, making it important to understand for anyone owning or buying real estate in the state.

The Two Tiers of Property Tax

Property tax in New Hampshire is composed of distinct parts that form a property owner’s total bill. The largest component is the local tax, set by individual municipalities and counties to pay for local services like police and fire departments, road maintenance, and parks. The rate for this tax varies significantly from one town to another, depending on the community’s annual budget.

A second layer is the Statewide Education Property Tax (SWEPT). While this is a state tax, it is assessed and collected locally with municipal and county taxes. The revenue from SWEPT is dedicated to funding public education. Each year, the state determines the total amount to be raised, which is then apportioned to municipalities based on the total value of property within their borders.

How Your Property Tax Bill is Calculated

A property tax bill is calculated by multiplying the property’s assessed value by the local tax rate. The assessed value is the monetary worth of a property for tax purposes, as determined by local assessing officials. This valuation is intended to reflect the property’s fair market value—the price it would likely sell for in an open market.

Assessors use mass appraisal techniques, analyzing market data and property characteristics to determine values for all properties in a municipality annually. The New Hampshire Department of Revenue Administration (DRA) conducts studies comparing local assessments to actual sale prices to ensure fairness. This results in an “equalization ratio,” which adjusts local assessed values to a common standard so the SWEPT is applied uniformly.

The other part of the equation is the tax rate, often expressed in mills, where one mill equals one dollar of tax for every $1,000 of assessed value. Each year, the municipality, county, and local school district determine their budget requirements. The total amount needed is then divided by the total assessed value of all taxable property in the town to arrive at the tax rate. For example, a home assessed at $300,000 with a tax rate of $20 per $1,000 would result in an annual property tax bill of $6,000.

Available Tax Relief and Exemptions

Homeowners in New Hampshire can access programs to lessen their property tax liability. The state-level Low and Moderate Income Homeowners Property Tax Relief program provides direct assistance to eligible property owners based on income criteria. Qualified homeowners must apply annually to the DRA to receive a rebate on a portion of their paid property taxes.

Municipalities also offer tax credits and exemptions that reduce a property’s assessed value or provide a direct reduction on a tax bill. Homeowners must file applications for these programs with their local assessing office by a specific deadline. Common programs provide exemptions for:

• Veterans who meet certain service requirements.
• The elderly, with an exemption that can increase with age.
• Individuals who are legally blind.
• Those with qualifying disabilities.

The Tax Billing and Payment Process

Property tax billing and collection are handled locally by the city or town tax collector, who sends bills directly to property owners. The billing cycle is typically semi-annual, meaning homeowners receive two bills per year. While due dates can vary by town, they commonly fall in early July and early December.

Property owners have several payment options. Payments can be made by mailing a check or in-person at the town or city hall with a check, cash, or sometimes a credit card. Many towns also offer online payment portals for electronic checks or credit cards, though this service may include a processing fee.