Property Tax Relief

Introduction

Homeowners in New Hampshire pay two kinds of property taxes: local (town/city, county, and local education) and state (the state education property tax). This pamphlet explains local and state property tax relief options available to help senior citizens, persons with low income, veterans and their spouses, and persons with disabilities. Certain forms of local property tax relief are available in all cities and towns, while other tax relief options must first be adopted by the town/city. State education property tax relief is available statewide. Most forms are available from the Department of Revenue Administration, phone 230-5000 or at https://www.revenue.nh.gov/.

I. Local Property Tax Relief Available in All Towns/Cities

A. Property Tax Abatements

Property taxes may be reduced or waived by a town/city if you are able to show “good cause.” “Good cause” for an abatement includes:

1. inability to pay your taxes (a “hardship” or “poverty” abatement); or
2. the town’s valuation of your property is too high (a “valuation” abatement).

To qualify for a “valuation” abatement, you must first file a property inventory by April 15 in the year you request the tax reduction, if your town/city requires inventories. You must apply for an abatement with the assessors or Selectmen by March 1 following the final tax bill for the year. You can ask to have taxes from prior years abated too. The town/city will have until July 1 to decide on your abatement. If you are unhappy with your town’s decision on your request for abatement, you must file an appeal with either the Superior Court or the Board of Land and Tax Appeals (BTLA) by September 1 of the year following the tax bill. The BTLA has forms for applying for abatements and for appeals to the BTLA.

B. Tax Deferral for the Older and Disabled Adults

Older and disabled persons who would suffer serious financial hardship or a possible loss of the property because of the burden of their property taxes can apply for a property tax deferral. Under this program, the town can take a deferral lien on your home for the taxes you owe.

Once the town files a deferral lien on your property, it will charge five percent (5%) annual interest on taxes owed. Although a tax deferral is like a mortgage, you do not have to pay any of the deferred taxes or the interest while remaining in your home. The deferred taxes do not have to be paid until after your death, unless you sell the property. If you are interested in a tax deferral, you should carefully explore the benefits and consequences.

Eligibility Rules

1. You must be 65 or older, or eligible for Social Security or SSI disability benefits; and
2. If you are an older adult, you must have owned the home in which you currently live for at least five years (one year if you are disabled); and
3. The total amount of tax deferrals on your property is not more than 85% of the property’s equity value.

You must apply for a tax deferral with the assessors or Selectmen by March 1 following the final tax bill for the year. Use form PA-30 “Elderly and Disabled Tax Deferral Application.” The town/city will have until July 1 following the tax bill to decide on your tax deferral. If you are unhappy with your town’s decision on your request for tax deferral, you must file an appeal with either the Superior Court or the Board of Land and Tax Appeals by September 1 of the year following the tax bill. If you believe you are eligible for this program, you should also apply for a tax abatement based on financial hardship, explained in Section I, A above.

C. Property Tax Exemptions for Older Adults

All towns and cities must have a tax exemption for older taxpayers. However, the amount of an older adult tax exemption and the eligibility rules can vary, so you should contact your town/city to find out what it allows. The minimum exemption is $5,000 off the assessed value of your home. The minimum annual income limit must be $13,400 for a single person, or $20,400 for a married couple. Social Security income counts towards the income limit. The minimum asset limit is $35,000, excluding the value of your home. The age requirement is 65 years of age or older, and you must have lived in New Hampshire for the last three years. Refer to Section III of this pamphlet for the proper steps to take to apply for an older adult tax exemption.

D. Veterans’ Tax Credits

Any honorably discharged veteran who served in the United States armed forces for at least 90 days in World Wars I or II, the Korean Conflict, the Vietnam Conflict, Persian Gulf War, or who served in another war or armed conflict between July 1958 to Dec. 22, 1961 or since May 8, 1975, and earned an armed forces expeditionary medal, theater of operations service medal, or other qualifying medal, is eligible for a $50 reduction in residential property taxes. See Section II C below regarding the optional expanded veterans’ tax credit.

This tax credit is also available to veterans whose service ended because of a service-connected disability, or persons who served on active duty in the armed forces of any allied government in any of the above listed wars or conflicts, and who, at the time, was a United States citizen or a resident of New Hampshire.

If you are a surviving spouse of a veteran who served 90 days in one of the wars or conflicts listed above or who was discharged due to a service- connected disability, you may also qualify for this $50 tax credit. The surviving spouse of a veteran of an allied government’s armed forces whose death was service-connected is also entitled to this credit.

A much larger credit of $700 is available for veterans who became totally disabled due to a service-related injury, or surviving spouses of any veterans who died in one of the wars or conflicts noted above. Again, see Section II C below regarding the optional expanded veterans’ tax credit.

A veteran with a total service-connected disability living in a specially adapted house bought with the Veterans Administration’s help is totally exempt from property taxation, as is his/her surviving spouse.

E. Exemption for Home Improvements to Help Persons with Disabilities

A town may not require you to pay additional taxes for improvements you made to your home to help a disabled person who lives there. Rather, you should only be taxed at the assessed value of your home before the improvements.

Eligibility Rules

1. To benefit from this exemption, you must be a person who, because of a physical disability, uses special equipment for mobility; and
2. The person who has a physical disability must live at the home for which the exemption is claimed and during the year in which the exemption is claimed.

F. Exemptions for Persons Who Are Legally Blind or Deaf/Severely Hearing Impaired

If you are determined to be legally blind or if you are deaf or severely hearing-impaired, you may exempt at least $15,000 of your assessed property value for property tax purposes. Your town or city may have adopted higher exemption amounts in light of increased property values, so it is important to check with your town on the specifics of this exemption.

NHLA believes that these exemptions are mandatory up to $15,000, and optional thereafter, though the law is not settled on this matter.

An additional exemption exists for the value of improvements for the purpose of assisting a person who is deaf or severely hearing-impaired. To apply for these exemptions, refer to Section III of this pamphlet for the proper steps to follow.

II. Expanded Local Property Tax Relief – Available Only by Town/City Option

A. Exemption for People With Disabilities

If you have been found disabled by the Social Security Administration (eligible for Social Security or SSI disability benefits), you should check with your town to see if it has adopted this exemption. Towns can also adopt a provision that grants the exemption to any person previously eligible for Social Security or SSI disability benefits who is no longer eligible for reasons other than the status of their disability as long as their physician submits an affidavit explaining that the person is still disabled according to Social Security disability rules. This exemption may be applied only to your primary residence, and each town sets its own income and asset limits for this exemption. To apply for this exemption, refer to Section III of this pamphlet for the proper steps to follow.

B. Expanded Veterans Tax Credit

Towns have the option of adopting an “all veterans” tax credit and/or increasing the veterans’ credit from $51 up to $500 for all qualified veterans and surviving spouses. They also have the option of increasing from $701 up to $2,000 the tax credit for totally disabled veterans (with a service-connected disability) and surviving spouses.

III. How to Apply for Property Tax Relief, or Appeal From a Denial of Your Request for Relief

You must file a timely application

If you wish to apply for any of the tax relief mentioned above, except an abatement or tax deferral, you must have filed a permanent application with the assessors or selectmen of your town/city by April 15 preceding the setting of the tax rate. For example, you must file an application for an older adult tax exemption for the current year by April 15. Use form PA-29 “Permanent Application for Property Tax Credits and Exemptions.” The town/city will have until July 1 prior to the date of the final tax bill (usually sent in Nov. or Dec.) to make decisions on credits and exemptions.

If you disagree with the town’s decision

You may file an appeal with either the Superior Court or the Board of Tax and Land Appeals (BTLA) by September 1 of the year following the tax bill, if you are unhappy with your town’s decision concerning your application. The BTLA has appeal forms for a BTLA appeal.

If your final tax bill is late

If your final tax bill was sent later than December 31, all three deadlines for abatements and deferrals – March 1, July 1, and September 1 – are adjusted accordingly.

If you do not receive a written decision from the town

Even if you do not receive a written decision from your town by July 1, file your appeal with either the Superior Court or the Board of Land and Tax Appeals by September 1 of the year following the tax bill. If you miss that deadline, file your appeal as soon as possible, and state in your appeal that you never received a written decision from your town.

Never make a false statement in your application

It is very important that you make every effort to fill out your application accurately and truthfully. Your application can be denied if the selectmen or assessors believe you have willfully made any false statement in the application in order to gain tax relief. Your town/city is likely to ask for additional information about your income and assets and supporting documents for most forms of property tax relief.

IV. Low and Moderate Income Homeowners’ Property Tax

The State Education Property Tax Relief program is open to all low and moderate-income homeowners subject to the state education property tax. The amount of relief varies with the taxpayer’s income level, net assessed value of the home and equalized town tax rate. There is no relief for single taxpayers with incomes above $20,000 and families with incomes in excess of $40,000. You must have resided in your home on April 1 of the year for which the claim is made. Applications are due between May 1 and June 30, following the final property tax bill. You may obtain an application (form DP-8) from your town, from the New Hampshire Department of Revenue Administration (DRA)’s website at https://www.revenue.nh.gov/, or by calling (603) 230-5000. You must submit your application to the NH Dept. of Revenue Administration, P.O. Box 299, Concord, NH 03302-0299. You must also submit a copy of pages one and two of your Federal Income Tax Return (if you were required to file), and a copy of your FINAL property tax bill for last year. If your application is rejected, you will be notified in writing within 90 days of submitting the claim. You have 30 days to appeal the denial to the Board of Tax and Land Appeals.

If any deadline falls on a weekend, holiday, or other day on which the relevant filing office is closed, file no later than the last day the office is open BEFORE the deadline.

Most forms are available from the Department of Revenue Administration (DRA), phone 230-5000 or at https://www.revenue.nh.gov/.

The property tax relief laws are subject to change. Contact your town/city or the DRA for updated information.

PLEASE NOTE: This pamphlet was published by NH Legal Assistance to give you some idea of your rights. Since the law is always changing through actions of the courts and legislature, you should consult a lawyer if you have a problem that requires legal attention.

Deadlines

• MARCH 1 for tax deferrals and abatements
• APRIL 15 for exemptions and credits

What sort of relief is available?

New Hampshire state law has property tax exemptions for certain people who are age 65 or older, blind, or deaf, and allows for one for people who receive SSDI/SSI. People age 65 and over and people receiving SSDI/SSI may have their taxes deferred. State law also allows for the abatement (forgiveness) of prior years’ taxes and/or interest for “good cause” such as financial hardship or poverty. There are tax credits for certain Veterans, surviving spouses, and those in combat.

Each of these programs has specific requirements. Cities/towns may choose whether to offer some forms of tax relief, and also may enact different income and asset limits and benefit amounts. Check with your city/town or the Department of Revenue Administration (DRA) to see what the specific requirements are in your city/town.

The State’s low & moderate income tax relief program rebates a portion of property taxes for those making under a certain income level. You can apply for this program even if you have already applied for tax relief from your city/town and even if you have not paid those property taxes.

What is the difference between a credit, deferral, and an exemption?

A credit is a reduction in the amount of property taxes you owe in a given year.

An exemption is a reduction in the value of the property which is taxed.

A deferral allows you to pay your property taxes at a later time at a reduced interest rate.

An abatement is a forgiveness of taxes based on an error in the assessment calculation, a disproportionate assessment, or poverty and an inability to pay.

Where do I obtain an application form?

You can obtain an application from your city/town. You must ask for a deferral application (form PA-30) or an exemption / credit form (PA-29). These forms and the application for low & moderate income tax relief can also be downloaded from the Department of Revenue Administration’s website (revenue.nh.gov/resource-center/current-year-forms-and-instructions) (→Property), or requested on the “form line,” 603-230-5001.

To apply for a tax abatement, use the “Taxpayer’s RSA 76:16 Abatement Application to Municipality” available by calling the Board of Tax and Land Appeals (BTLA) at 603-271-2578, or on its Forms page (→Property Tax Forms→Municipal Abatement Form).

When is the filing deadline?

Tax deferral and abatement applications are due March 1st following the date of notice of tax. In 2025, file by Feb. 28! Exemption/credit forms for the tax year must be filed by April 15th . Applications for the low & moderate income tax relief program must be filed between May 1st and June 30th following the final property tax bill. ALWAYS check with the Department of Revenue Administration in any given year as the due date may change, and forms may have been updated.

What happens next?

The town/city will have until July 1 to make a decision. If the taxpayer disagrees with the town/city’s decision or there is no decision, the taxpayer may file an appeal with either the Superior Court or the Board of Tax and Land Appeals (BTLA) by September 1. The BTLA website has a form for filing a BTLA appeal.

Other property tax relief may be available to you!

Other exemptions are available including for home improvements to assist persons with certain disabilities and a total exemption for a specially adapted homestead which has been acquired with the assistance of the Veterans Administration. Other tax credits are available for service-related total disability and in some towns/cities, a credit for combat service. Additional exemptions are available for solar and wind-powered energy, wood-heating energy, and electric energy storage systems.

* NHLA believes a minimum $15,000 exemption is mandatory for people who are blind, deaf, or severely hearing impaired.