A Guide to New Hampshire Property Tax Exemptions

Reducing Property Taxes A Guide to New Hampshire Property Tax Exemptions

New Hampshire Property Tax Exemptions Ease Your Tax Burden

New Hampshire is a place of outstanding natural beauty, but your idyllic lifestyle comes at a price.

The state is known as being tax-friendly, with no personal income tax or sales tax for NH residents. The trade-off is that homeowners in the Granite State are hit with the fourth-highest property tax rate in the U.S.—far removed from the states with low property tax.

DoNotPay feels your pain as a New Hampshire homeowner, and we are here to offer you help with paying your property tax. If you are looking to lower your property taxes, DoNotPay is the place to look for New Hampshire property tax exemptions.

What’s the Deal With New Hampshire Property Tax?

New Hampshire collects state property tax that is supplemented by county and municipal property levies. The revenue funds:

  • State schooling
  • Municipal services
  • County amenities
  • Local school projects

Your total property tax bill as a real estate owner in New Hampshire is calculated by multiplying two elements, namely:

  1. State and local tax rate
  2. Assessed property value

State and Local Tax Rate

The counties, towns, and school districts in New Hampshire all submit budgets that are added together and combined with state requirements to determine how much total tax money is needed each year. As the state does not charge sales tax or receive any income from personal income tax, all the funding requirements must be met by property tax revenue.

The result is that New Hampshire charges an average property tax rate of 2.05%. The breakdown between the counties in the state is as follows:

CountyMedian Home ValueMedian Annual Property TaxAverage Effective Property Tax Rate
Belknap$222,300$4,1391.86%
Carroll$236,500$3,1061.31%
Cheshire$190,600$5,2132.74%
Coos$124,900$2,9632.37%
Grafton$220,400$4,5342.06%
Hillsborough$265,000$5,9092.23%
Merrimack$232,100$5,6092.42%
Rockingham$310,200$6,2932.03%
Strafford$226,600$5,4872.42%
Sullivan$174,000$4,7152.71%

Assessed Property Value

County assessors in New Hampshire appraise each property annually, but the system is not based on physical visits, which are usually only conducted on new or renovated properties.

The assessors base their property valuations on two approaches for residential property.

  1. Sales value approach
  2. Cost approach

Sales Value Approach

The assessor uses desktop models to track sales data in each county. It assigns a value to your property based on the sale price of similar local properties that have changed hands recently.

This approach can hurt you as a homeowner, as property prices in New Hampshire have been rising at 16% a year recently. Whether or not your home’s value has increased, this approach will increase its value for property tax valuation purposes.

Cost Approach

This approach estimates the cost of building your home at today’s prices and is highly theoretical. The result is that valuations based on the cost approach tend to be estimations. Assessors tend to favor the sales value approach as a consequence of this.

The tax rate and your property assessment, when multiplied together, mean that the average homeowner in New Hampshire faces a property tax bill of $5,768 a year.

DoNotPay knows this is a huge amount, and our job is to find ways for you to get relief or discounts on your property tax bill.

What NH Property Tax Exemptions Are Available?

New Hampshire offers a few exemptions and relief options to help you reduce the amount of property tax you have to pay. There is no standard homestead exemption, and the exemptions offered are targeted at those residents most in need of help.

Exemption

Explanation

Low-income reliefSingle homeowners with an annual income of less than $20,000 or families earning less than $40,000 a year can apply for relief on their property tax bill in the form of a tax rebate check. This can be granted in addition to any exemptions applied for
Blind exemptionNH residents who are certified legally blind are eligible for an exemption of up to $120,234 off the assessed value of their home
Elderly exemptionSenior citizens in New Hampshire can apply for this exemption if they fulfill the following criteria:

  • 65 or over on April 1 of the year they are applying
  • NH resident for the last three consecutive years
  • Owner or co-owner of the property
  • Net annual income of less than $34,300 for single persons and $47,200 for couples
  • Separate assets of $95,000 or less

The exemptions offered are age-related reductions in the assessed value of the property, as follows:

  • $73,000 reduction (age 65–74)
  • $119,000 reduction (age 75–79)
  • $203,000 reduction (age 80 or over)
Disabled veterans’ creditThis credit applies to veterans permanently disabled while in service and offers a $2,000 credit on their property tax bill
All veterans’ creditThis offers a reduction of $150 on the annual property tax bill for veterans who have served 90 days or more in the armed forces
Elderly and disabled deferralA property tax payment deferral is available to homeowners over 65 and means that their property tax bill must only be paid after they die or sell the property. Any deferred payments attract interest at 5% a year, and the total deferral amount cannot exceed 85% of the property’s assessed value
Solar energy systems exemptionIf a homeowner in New Hampshire installs a solar system for heating, cooling, or water management, they can offset the full cost of the equipment and installation against their property’s assessed value

How Can DoNotPay Help You Claim a New Hampshire Property Tax Exemption?

DoNotPay is the expert at helping you claim property tax exemptions wherever you are.

We can generate a customized property guide that explains your options, helps you understand the necessary paperwork, and shows you how to apply.

The property guide has two sections:

  • Property tax exemptions, with details of the exemptions available in your area, the documents you will need, and the offices where you can apply
  • Property assessments, with advice on how to negotiate a lower valuation and where to lodge an appeal

How Do You Get DoNotPay’s Property Guide?

Your personalized property guide is easy to get. All you have to do is:

  1. Find DoNotPay in your web browser, sign up, and look for the Property Tax feature
  2. Fill in some details about yourself
  3. Wait briefly while DoNotPay generates your guide

What Other Advice Does DoNotPay Have for New Hampshire Homeowners?

If you are unable to qualify for any of the above exemptions or you feel your property tax bill is still too high, you can appeal your property tax assessment.

The appeal process can be daunting, but DoNotPay can help you with information about:

  1. How appeals work in New Hampshire
  2. What documents and evidence you need
  3. Where your appeal will be heard

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