New Hampshire boasts no state income tax and no state sales tax. To fund public services, the state relies heavily on property taxes, resulting in one of the highest property tax burdens in the nation with a statewide effective rate of 1.50%. Property taxes are set locally by individual towns, leading to massive variations in tax bills depending on the wealth and commercial base of your specific municipality (est., Tax Foundation 2026).
Because the “Live Free or Die” state aggressively avoids broad-based income and sales taxes, the property tax serves as the absolute backbone of New Hampshire’s revenue system. Consequently, New Hampshire has the highest property taxes in New England. Furthermore, the January 1, 2025, total repeal of the state’s Interest and Dividends tax ensures that property taxes will remain the dominant funding source for the foreseeable future.
100% Assessment and the 5-Year Reappraisal
In New Hampshire, the target assessment ratio is 100% of full and true market value. To maintain this, state law (RSA 75:8-a) strictly mandates that all municipalities must physically reappraise all real estate at least once every 5 years.
Between full reappraisal years, the New Hampshire Department of Revenue Administration (DRA) uses an equalization ratio to measure accuracy. If a town’s assessed values fall significantly out of line with current market sales (the acceptable compliance range is typically 90% to 110%), the state can intervene.
New Hampshire statewide effective rate. On a $450,000 home, expect approximately $6,750 per year at the statewide average. (est., Tax Foundation 2026).
| Home Value | Annual Tax (est.) | Monthly Payment | vs. U.S. Average |
|---|---|---|---|
| $300,000 | $4,500 | $375 | +$1,800 above avg. |
| $450,000 | $6,750 | $562 | +$2,700 above avg. |
| $600,000 | $9,000 | $750 | +$3,600 above avg. |
| $800,000 | $12,000 | $1,000 | +$4,800 above avg. |
| $1,000,000 | $15,000 | $1,250 | +$6,000 above avg. |
Estimates use 1.50% statewide effective rate. U.S. average uses 0.90%. Source: est., Tax Foundation / Census ACS.
SWEPT and the Supreme Court Rulings
A significant portion of your New Hampshire tax bill is the Statewide Education Property Tax (SWEPT). While called a “statewide” tax, it is actually raised locally and kept locally to fund schools.
In 2025, the NH Supreme Court issued a major ruling (*Rand v. State of New Hampshire*). Some property-wealthy towns with few students had been setting “negative” local education tax rates to artificially offset their SWEPT payments. The Court ruled this practice unconstitutional. However, the Court also ruled that property-wealthy towns can legally retain their “excess SWEPT” revenue, sparking major legislative battles in Concord over how to equitably fund schools without crushing taxpayers in property-poor towns.
Low & Moderate Income Homeowners Property Tax Relief
To offset the heavy burden of the Statewide Education Property Tax, the NH Department of Revenue Administration offers a targeted relief program for lower-income residents.
- Eligibility: Adjusted Gross Income of $37,000 or less for single applicants, or $47,000 or less if married/head of household.
- Application Window: You must file Form DP-8 exclusively between May 1 and June 30 each year. There are no exceptions for late filings.
Local Exemptions: Elderly, Veterans’, and Blind
Because New Hampshire grants sweeping authority to its municipalities, most exemptions are controlled locally via a town vote. You must apply for these by filing Form PA-29 with your local assessor by April 15.
- Elderly Exemption: Provides a reduction in assessed value for homeowners aged 65+. The amount and the strict income/asset eligibility limits are determined individually by each town (often tiered by age: 65-74, 75-79, 80+).
- Veterans’ Tax Credit: Provides a flat dollar reduction on the final tax bill for wartime veterans and those with service-connected disabilities. The state requires a statutory minimum (e.g., $50), but local towns routinely vote to adopt much higher “optional” credit amounts (up to $750 or more).
Estimated Rates Across All 10 Counties
Because property taxes are the primary revenue generator for municipalities, rates vary wildly based on local commercial infrastructure. “Property-poor” counties like Sullivan and Cheshire (over 2.40%) have fewer commercial businesses to shoulder the tax burden, forcing residential homeowners to pay massive tax rates to fund local schools.
Conversely, Carroll County (Lake Winnipesaukee and the White Mountains) boasts the lowest effective rate in the state (1.16%). The region is packed with high-value, multi-million dollar vacation homes. These secondary homes generate massive property tax revenue for the towns but add zero students to the local school system, allowing the towns to keep their tax rates incredibly low.
| County | Effective Rate | Annual Tax on $450k Home | Notes |
|---|---|---|---|
| Hillsborough County | ~1.88% | $8,460 | Most populous (Manchester, Nashua). |
| Rockingham County | ~1.71% | $7,695 | Southern border; robust commercial tax base. |
| Merrimack County | ~2.16% | $9,720 | Includes Concord (State Capital). |
| Strafford County | ~2.16% | $9,720 | Includes Dover and Rochester. |
| Grafton County | ~1.96% | $8,820 | Includes Lebanon and Dartmouth College. |
| Cheshire County | ~2.44% | $10,980 | High residential burden. |
| Belknap County | ~1.59% | $7,155 | Lakes region; high secondary home values lower rates. |
| Carroll County | ~1.16% | $5,220 | Lowest rates; heavily subsidized by luxury vacation homes. |
| Sullivan County | ~2.63% | $11,835 | Highest aggregate effective rate in the state. |
| Cos County | ~2.12% | $9,540 | Northernmost county. |
Disclaimer and Methodology
This calculator provides estimates for planning purposes only, based on effective property tax rates (actual median taxes paid divided by median home values). In New Hampshire, property taxes are levied entirely at the municipal level, meaning exact mill rates vary wildly from town to town. This calculator uses historical “effective rates” to bypass complex municipal assessments and provide a highly realistic estimate of actual homeowner burden.
What this calculator does not account for:
- Unique village district taxes (e.g., specific water or fire districts) that only apply to certain neighborhoods within a town.
- The Low & Moderate Income Homeowners Property Tax Relief program, which is a rebate issued directly by the state, not a reduction on your local tax bill.
How to get an accurate estimate:
- Find your home’s 100% Assessed Value on your local municipal assessor’s website.
- Subtract any local exemptions you qualify for (Elderly, Blind).
- Multiply the result by your local town’s specific mill rate, divide by 1,000, and then subtract any flat Veteran Credits.
Data sources: Statewide effective rate and aggregate county effective rates derived from the Tax Foundation and SmartAsset aggregations. Statutory rules, exemption limits, and SWEPT guidelines from the New Hampshire Department of Revenue Administration.
Return to the National Property Tax Calculator to compare New Hampshire with other states.