What is the property tax rate in New Hampshire?
The property tax rate in New Hampshire averages 1.5% of market value for owner-occupied homes (Tax Foundation 2026, using the 2024 American Community Survey). Only Illinois, New Jersey, Connecticut and Vermont rank higher among the 47 states we cover, and for an apartment owner the property tax bill is one of the biggest lines in the operating budget.
The high rate is the other side of New Hampshire’s tax system. The state has no general sales tax and no tax on individuals’ wages or capital gains, so cities and towns fund local government and schools mainly through property tax. Each town sets its own rate every year, and rates differ a great deal from one town to the next.
How a New Hampshire tax rate is built
Every New Hampshire town expresses its tax rate in dollars per $1,000 of assessed value, and the total combines four separate rates. A building assessed at $1,000,000 in a town with a $20 rate pays $20,000.
The state education portion is set by the Department of Revenue Administration (DRA) to raise $363,000,000 statewide each year under RSA 76:3, and cities and towns assess and collect it. The other three pieces are set by the town, the county and the school district, so each one can move on its own from year to year.
| Part of the rate | Who sets it | What it pays for |
|---|---|---|
| Municipal | Town or city | Town government, police, fire, roads |
| County | County | County government and services |
| Local education | School district | Local school costs not covered elsewhere |
| State education | Set by the DRA, collected locally | The Statewide Education Property Tax |
How New Hampshire sets assessed value
Assessors must value property at market value, which RSA 75:1 defines as full and true value. Towns must reappraise all real estate to full and true value at least every fifth year under RSA 75:8-a.
Between revaluations, market values move and assessments do not always keep up. An equalization ratio for each town measures that drift by comparing assessments with market value. If a town’s ratio is 80%, a building worth $2,000,000 might carry a $1,600,000 assessment, and the town’s rate is higher than it would be at full value. The effective rate is what matters: assessed value times the rate, divided by market value.
Does a sale trigger reassessment in New Hampshire?
Not automatically. New Hampshire has no rule that resets value to the sale price, but RSA 75:8 requires assessors to adjust assessments each year to reflect changes, and it lists a change in ownership among the things they “shall consider.” Physical changes, zoning changes, subdivisions and other changes affecting value are on the same list.
In practice the bigger reset comes at the next revaluation, when every property in town moves to full value at once and the rate is recalculated. A buyer underwriting a New Hampshire building should ask when the town last revalued and where its equalization ratio sits, because a building assessed well below its price in a town due for revaluation can see a sharp increase.
Are there caps on property tax increases in New Hampshire?
No. New Hampshire has no statewide cap on assessment growth or on annual tax increases for apartment buildings. Your bill moves with the town’s budget and with your assessment.
When you project taxes forward, look at the town’s budget trend and its revaluation schedule rather than assuming the current bill will hold.
How to appeal your property tax in New Hampshire
File an abatement application with your town’s selectmen or assessors by March 1 following the notice of tax, under RSA 76:16. The town must grant or deny it in writing by July 1, and if it does not act by then, the application is treated as denied.
If the town denies it, you can appeal to the Board of Tax and Land Appeals (BTLA) by September 1 after the notice of tax, with a $65 filing fee (RSA 76:16-a). You can elect the BTLA’s small claims procedure, which applies unless the town asks for a full hearing within 30 days. An abatement argues that your assessment is disproportionate, so bring a recent appraisal or comparable sales and the town’s equalization ratio.
| Step | Deadline | Statute |
|---|---|---|
| Abatement application to the town | March 1 after the notice of tax | RSA 76:16 |
| Town decision | July 1, or deemed denied | RSA 76:16 |
| Appeal to the Board of Tax and Land Appeals | September 1 after the notice of tax | RSA 76:16-a |
Property tax exemptions for New Hampshire apartments
New Hampshire has no general exemption for apartment buildings. The main tool for owners is community revitalization tax relief under RSA 79-E, which lets an owner who plans to substantially rehabilitate a qualifying building apply to the town for a period of tax relief.
The town holds a public hearing and decides whether the project delivers a public benefit, such as more downtown housing, and if so sets the length of the relief and a covenant to protect that benefit. Relief is discretionary and local, so a building that has it should come with a copy of the covenant, and a buyer will want to know how many years remain.
Worked example: property tax on a $2M New Hampshire apartment building
Take a 20-unit building in southern New Hampshire with a market value of $2,000,000. At the statewide average effective rate of 1.5%, the yearly tax is $30,000, or $1,500 per unit. In a town whose effective rate is a third higher or lower, the bill moves by about $10,000 either way, which is why the town matters as much as the building.
Now the sale. Say the town assessed the building at $1,500,000, so at the same rate the seller paid about $22,500. If the next revaluation moves it to the $2,000,000 sale price, the buyer’s bill rises to about $30,000, which is $7,500 a year more. At an illustrative 6% cap rate, that $7,500 of lost NOI is worth about $125,000 of value, and buyers will price that in when the town is due for revaluation.
| Scenario | Assessed value | Yearly tax at 1.5% effective rate |
|---|---|---|
| Assessed at full market value | $2,000,000 | $30,000 |
| Assessed below market, before revaluation | $1,500,000 | $22,500 |
| Increase after revaluation | Up $500,000 | Up $7,500 |
| Value effect at a 6% cap rate | n/a | About $125,000 |
Effective rate or town rate: which one to use
Use your town’s rate and your actual assessment for a specific building, and the 1.5% effective rate only to compare New Hampshire with other states. The Tax Foundation number divides median taxes paid by median home value for owner-occupied homes.
Two adjustments turn a town rate into something comparable. Multiply the rate per $1,000 by the town’s equalization ratio to get an effective rate on market value, then check whether the town is near a revaluation. A town with a high rate and a low ratio can be cheaper than its rate suggests today, and more expensive after the revaluation.
New Hampshire property tax rates by town
New Hampshire property tax is set town by town, not county by county, so the useful comparison is between the town where your building sits and its neighbors. County government is only one of the four parts of the rate, and two buildings in the same county can pay very different bills.
We have not printed a ranking of town rates here, because the 2025 rates published by the DRA were not available to us in a form we could check line by line. Your tax bill shows the current total rate and its four parts, and the town assessor can tell you the equalization ratio and the year of the last revaluation. With those three numbers you can compare any two towns on an equal footing.
What to check on your tax bill before you sell
A buyer will ask for most of this, so have it ready.
- The total rate per $1,000 and how it splits among municipal, county, local education and state education.
- Your assessed value, the town’s equalization ratio and the year of the last revaluation.
- Any abatement application or BTLA appeal you have filed, and its status.
- Any RSA 79-E relief on the property, with the covenant and the years left.
- The last three years of bills, so a buyer can see the trend.
How property tax affects your sale price
In a state where property tax can run $1,500 a unit or more, every dollar comes straight off NOI and off value at the buyer’s cap rate. Buyers will look at your last few bills, the town’s revaluation schedule and its ratio before they settle on a number.
Gather the last three tax bills, the assessment card and any RSA 79-E covenant before you go to market. If you have a pending abatement or a BTLA appeal, say so, since a win can lower the buyer’s bill and a loss can confirm the current one.
Selling an apartment building in New Hampshire
Skyline buys apartment buildings with five or more units in New Hampshire, from Manchester and Nashua to Concord, Dover and the Seacoast. We buy directly, close on your timeline, and can work inside 1031 deadlines. We underwrite from your actual tax bills and the town’s revaluation timing, so the tax picture is clear before we make an offer.
For the taxes on the sale itself, see New Hampshire capital gains tax on real estate. For the eviction and deposit rules a buyer inherits, see New Hampshire landlord-tenant law for apartment owners.
