Overview
New Hampshire offers no income tax and no sales tax, attracting residents from Massachusetts and other high-tax states. The state provides outdoor recreation from the White Mountains to the seacoast while maintaining access to Boston. Property taxes are high but often offset by income tax savings.
New Hampshire Real Estate Market
Southern New Hampshire (Nashua, Manchester) has strong demand from Boston commuters seeking tax advantages and more space. The seacoast (Portsmouth, Exeter) commands premiums for coastal living. The Lakes Region and White Mountains attract second-home buyers. Extremely low inventory has driven prices up significantly.
Property Taxes in New Hampshire
New Hampshire has among the highest property taxes in the nation due to no income or sales tax.
Average effective rate: 2.18%
Annual tax on median home: ~$10,137
Note: Property taxes fund nearly all local services
First-Time Buyer Programs
NHHFA Programs: New Hampshire Housing Finance Authority offers:
- Home Flex Plus - Below-market rates with assistance
- Home Preferred Plus - Conventional option
- Cash assistance up to $8,000
Closing Costs in New Hampshire
New Hampshire closing costs are moderate, typically 2-3% of purchase price.
Common costs include:
- Title insurance: Based on purchase price
- Transfer tax: $1.50 per $100 (split buyer/seller)
- Recording fees: Registry-dependent
- Attorney fees: Common
Frequently Asked Questions
For high earners, yes. No income or sales tax can save thousands annually, often offsetting higher property taxes. The math depends on your income, spending, and home value. Retirees often benefit significantly.
Strong demand from Massachusetts, limited new construction, and homeowners reluctant to sell (they'd lose favorable tax positions) have created severe inventory shortages, driving up prices.
Portsmouth offers a walkable historic downtown, excellent restaurants, and coastal access. It's one of New England's most charming small cities. High prices reflect genuine scarcity and desirability.