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Property Taxes

Local property taxes are the main way New Hampshire supports its public schools. In fact, with insufficient state aid flowing to local school districts, New Hampshire’s homeowners and renters are consistently saddled with some of the highest property taxes in the country. Tremendous differences in property values among cities and towns mean that this heavy reliance on the property tax often falls most heavily on those least able to afford it.

Here you can find a wealth of information about the disparities built into New Hampshire’s property tax and school funding system.

By the Numbers Property Comparisons Values and Tax Rates Property Tax Relief Fact Sheets

6.3%

The amount of property tax paid by New Hampshire’s middle-income taxpayers.

1.9%

The amount of property tax paid by the richest New Hampshire residents

8.4%

The average amount of personal income New Hampshire residents paid in total taxes.

5.6%

The average amount of personal income New Hampshire residents paid in state and local property taxes.

Property Tax Comparison: Newbury and Sutton

Below are two New Hampshire homes and their education property tax bills that illustrate well the problems with New Hampshire’s heavy reliance on local property taxes to fund its schools. While the Newbury home is assessed at a much higher value, it sits in a “property wealthy” town along the shores of Lake Sunapee that has more than $5,000,000 in property value per pupil that can be taxed to pay for its public schools. The Sutton home is listed at only 60% of the value of the Newbury home. However, because Sutton has much lower equalized property value per pupil, just over $1,700,000 in property value per pupil to tax for schools, the Sutton homeowners pay a higher bill than those in Waterville Valley.

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These homes are only 3 miles apart, and families living there would both send their students to Kearsarge Regional School District. Their children are receiving the same education in the same schools, but their tax bills to support that education are wildly different.

Newbury

2023 List Price: $785,000

Education Property Taxes: $4,993

Sutton

2023 List Price: $467,000

Education Property Taxes: $6,696

Property Poor Communities Must Use Much Higher Tax Rates to Fund Public Schools

This interactive graph (click here for the interactive version) shows the relationship between property values and total school tax rates for every city and town in New Hampshire. As it illustrates, communities with comparatively low property values must rely on considerably higher property tax rates to generate the resources needed to educate local school children.

To learn more about each municipality, click on the circles in the graph or use the “Find Your Town” toolbox at the top of the graph.

Once you’ve selected a town, you’ll see a few key facts on property wealth and school property taxes. For instance, clicking on the circle at the bottom right will show Brookline, where property value, as measured by equalized property value per pupil (EQVP), was $611,368 in 2020. Due to that relatively low property value, Brookline’s total school tax rate that year was the highest in the state or $22.50 per $1,000 of equalized value. EQVP is the total equalized value of all property in a given town divided by the number of public school students residing in that town, while the total school tax rate is that town’s combined rate of local and state education property taxes.

You’ll also notice the blue line at the center of the graph, which marks the position of the median town’s total school tax rate and can be referenced for comparison.

Click here to see an interactive version of the chart.

Why It Matters

Property Tax Relief

Property taxation is one of the most regressive forms of taxation, as it bears no relation to one’s ability to pay. In New Hampshire, the poorest 20% of households pay roughly 6% of their income to property taxes while the wealthiest 1% pay less than 2% of income to property taxes.

New Hampshire is in dire need of a property tax system that works for all – one that provides every child with a quality public education and one that prevents any family from being taxed out of their home.

To see if you or someone you know might be eligible for New Hampshire’s existing property tax relief program, visit the New Hampshire Department of Revenue Administration or apply here.

To learn more about ways to strengthen property tax relief in New Hampshire, check out NHSFFP’s Legislative Agenda.