New Hampshire is well known for being one of the few states without a state income tax on wages, yet it consistently ranks near the top for the highest property tax rates in the country. Property taxes are the primary way the Granite State funds its schools, police, fire services, and other essential local services. The yearly tax bill can be a significant financial strain for many residents, retirees, and single filers.
While the absence of a state income tax and sales tax helps keep certain costs lower, it does not always offset the impact of high property tax rates. Many taxpayers are surprised to see how much of their income goes toward funding local budgets, especially if the assessed value of their home has increased. These rising assessments can make planning for a tax year challenging, especially for those on fixed incomes.
To ease this burden, New Hampshire offers a range of programs designed to provide relief. From property tax exemptions for elderly or disabled residents to state-level refunds for low—and moderate-income homeowners, these programs can make a meaningful difference. This guide explains the available New Hampshire tax relief programs, eligibility requirements, important dates, and practical steps for those who cannot pay in full.
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New Hampshire tax relief programs are options offered at both the state and local levels to help residents reduce their overall tax burden. Because New Hampshire does not have a state income tax on wages or a general sales tax, most state revenue comes from property taxes, interest and dividends, and other fees. This unique mix of state taxes means that property owners shoulder a large share of funding for schools and local services, which can lead to higher-than-average tax bills.
These programs aim to reduce the assessed value used to calculate property tax, offer credits for certain groups, or refund a portion of the state education property tax. Some programs are automatic if you meet eligibility requirements. Still, most require you to apply with your local municipality or the Department of Revenue Administration by a set date each tax year.
At the state level, New Hampshire recently repealed its interest and dividend income tax, which will be fully phased out beginning with the 2025 tax year. The state also provides property tax relief for low—and moderate-income homeowners. Local towns may adopt additional exemptions for elderly residents, disabled homeowners, veterans, and those who install renewable energy equipment.
Even though New Hampshire does not impose a state income tax on wages or a general sales tax, residents still receive a yearly property tax bill. Property tax is the state’s primary funding source for schools, police, fire departments, and other local services. Each town calculates a property tax rate based on the community’s budget needs, then applies it to the assessed value of homes, land, and buildings.
Your tax bill also reflects statewide obligations such as the State Education Property Tax, which is applied uniformly across the Granite State. This results in a noticeable increase for some residents from one tax year to the next, especially if property values have recently been reassessed.
It is also important to remember that federal taxes and filing obligations remain separate. You will still file a federal tax return each year with the IRS, even though there is no state tax on wages or salaries. Residents earning interest, dividends, or making taxable purchases such as meals and lodging still pay certain state taxes, which contribute to public services. These combined responsibilities make understanding your tax bill essential for proper budgeting.
Failing to pay property taxes in New Hampshire can lead to serious financial and legal problems. Here is what taxpayers should expect if they leave their bill unpaid:
Fortunately, New Hampshire offers several tax relief programs to lower your overall tax burden. These programs are available at the state and local levels, and most require you to apply before a set date each tax year.
Each city or town can adopt additional exemptions and credits. You must file with your municipality by April 15 using the state Form PA-29.
If you receive a property tax bill or notice in New Hampshire, there are practical steps you can take to manage the situation. A transparent process can help you avoid penalties and reduce your total tax owed.
Navigating property tax exemptions, abatements, and filing deadlines can feel overwhelming, especially if juggling multiple financial obligations. A clear record of your past filings and tax history makes it easier to calculate eligibility and respond confidently to notices.
Our IRS Account Transcript Service allows you to quickly retrieve your full IRS account transcript and get a plain-English explanation of your tax history. This record can help you confirm reported income, check for discrepancies, and prepare the proper documents for local assessors or the New Hampshire Department of Revenue Administration.
Knowing precisely what the IRS has on file can save time, avoid mistakes, and strengthen your application for relief.
No, New Hampshire does not tax wages or salaries, which is why many residents choose to live here. The only state tax on income was the Interest and Dividends Tax, which applied to income earned from certain investments. That tax is fully repealed starting with the 2025 tax year. This places New Hampshire among the few states without a state income tax, offering a unique advantage for workers and retirees.
New Hampshire has no general sales tax, meaning most goods you purchase are tax-free. However, the state does charge a Meals and Rooms Tax on prepared meals, hotels, and short-term rentals. This tax income funds local services and supports municipal budgets. Even without a Hampshire sales tax, residents still contribute to state revenue through these targeted taxes, helping maintain schools, roads, and other essential services across the state.
No, New Hampshire has neither an estate tax nor an inheritance tax. The state repealed its estate tax decades ago, making it one of the most favorable states for retirees and families planning to transfer wealth. Property and assets can generally be passed to heirs without a state-level estate obligation. This policy is often noted as the reason why people relocating from high-tax states such as Washington find New Hampshire attractive for long-term estate planning.
Taxes in New Hampshire are higher than average, with an effective property tax rate above 2 percent. Municipalities rely heavily on property taxes to fund schools, public safety, and local services. Each year, an equalization process helps ensure assessed values remain fair across towns. The Tax Foundation has noted that New Hampshire ranks among the top states for property tax reliance, which explains why property owners often look for exemptions to reduce their bills.
Applications for this state-level program generally open in May and close by June. Eligible residents, including single filers who meet income limits, can receive a refund of part of the State Education Property Tax. Applicants must file the correct forms and provide proof of occupancy for the tax year. Applying early ensures time to correct any errors. Municipal websites often offer guidance and mailing instructions to make the process easier.
Certain New Hampshire towns allow retirees or homeowners with limited ability to pay to defer property taxes under RSA 72:38-a. This means the taxes are postponed, not forgiven, and interest accrues until the property is sold or transferred. Deferral programs can prevent hardship for seniors on fixed incomes. Contact your local assessor’s office to confirm availability, calculate your eligibility, and file before the annual deadline to avoid missing out on this option.
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