Why Town Choice Matters More in New Hampshire Than Almost Anywhere
New Hampshire famously has no broad-based income tax and no sales tax. The trade-off: property taxes carry the load, and the state's median effective rate of roughly 2.1% is among the highest in the country. But the statewide number hides the real story — because each of New Hampshire's towns and cities sets its own budget, the gap between towns is enormous. In our data, median effective rates range from 0.34% in Windsor to 4.17% in Claremont — more than a tenfold difference for homes in the same state.
Your total rate is the sum of four pieces, set each fall for every municipality: the town rate, the local school rate (usually the largest share), the state education rate, and the county rate. Because school budgets dominate, two neighboring towns can tax nearly identical homes very differently.
A note on the numbers: the rates below are median effective rates — actual taxes paid as a share of home value, calculated from our ZIP-level data — which is the best way to compare what homeowners really pay across towns. They will differ slightly from the official "mill rates" (dollars per $1,000 of assessed value) that towns publish, because assessed values don't always match market values.
Property Tax Rates in New Hampshire's Major Cities and Towns
| Town / City | County | Median effective rate | Tax on a $400,000 home |
|---|---|---|---|
| Manchester | Hillsborough | 1.89% | $7,560 |
| Nashua | Hillsborough | 1.81% | $7,240 |
| Concord | Merrimack | 2.59% | $10,360 |
| Derry | Rockingham | 1.90% | $7,600 |
| Dover | Strafford | 1.98% | $7,920 |
| Rochester | Strafford | 2.53% | $10,120 |
| Salem | Rockingham | 1.60% | $6,400 |
| Merrimack | Hillsborough | 1.94% | $7,760 |
| Londonderry | Rockingham | 1.85% | $7,400 |
| Hudson | Hillsborough | 1.47% | $5,880 |
| Keene | Cheshire | 3.10% | $12,400 |
| Bedford | Hillsborough | 1.76% | $7,040 |
| Laconia | Belknap | 1.49% | $5,960 |
| Lebanon | Grafton | 2.30% | $9,200 |
| Durham | Strafford | 2.90% | $11,600 |
| Exeter | Rockingham | 2.48% | $9,920 |
| Hampton | Rockingham | 1.58% | $6,320 |
| Amherst | Hillsborough | 2.11% | $8,440 |
| Portsmouth | Rockingham | 1.66% | $6,640 |
The Highest-Taxed Towns in New Hampshire
The top of the table is dominated by western and southwestern towns where modest property values meet full-service municipal and school budgets:
| Town | County | Median effective rate |
|---|---|---|
| Claremont | Sullivan | 4.17% |
| Troy | Cheshire | 3.48% |
| Lisbon | Grafton | 3.43% |
| Greenfield | Hillsborough | 3.39% |
| Jaffrey | Cheshire | 3.33% |
| Charlestown | Sullivan | 3.23% |
| Bennington | Hillsborough | 3.17% |
| Plymouth | Grafton | 3.14% |
| Keene | Cheshire | 3.10% |
In Claremont, a $300,000 home carries a bill around $12,500 a year — more than many towns charge on homes worth twice as much.
The Lowest-Taxed Towns in New Hampshire
The other end of the list is a map of the Lakes Region and the White Mountains. High-value waterfront and resort property spreads small town budgets across a large tax base:
| Town | County | Median effective rate |
|---|---|---|
| Windsor | Hillsborough | 0.34% |
| Center Harbor | Carroll | 0.48% |
| Moultonborough | Carroll | 0.48% |
| Bartlett | Carroll | 0.50% |
| New Castle | Rockingham | 0.50% |
| Hebron | Grafton | 0.64% |
| Tuftonboro | Carroll | 0.64% |
These are genuine outliers, not loopholes: most are small resort towns where the median home is expensive and municipal services are lean. If you're shopping the Lakes Region, the difference between Moultonborough (0.48%) and nearby Rochester (2.53%) on a $500,000 home is about $10,000 a year.
Relief Programs NH Homeowners Should Know
New Hampshire pairs its high rates with meaningful relief, all application-based:
- Elderly exemption: towns must offer an exemption for homeowners 65+, with amounts and income/asset limits set locally — often $50,000 to $200,000+ off assessed value in southern towns. See our senior exemption guide.
- Veterans' credits: a direct credit against the bill, commonly $50–$750 depending on the town, more for service-connected disability. Details in our veterans guide.
- Low & moderate income homeowners property tax relief: a state rebate on the state education portion of the bill, filed with the Department of Revenue Administration each spring.
- Appeals: if your assessment looks high relative to similar homes, NH gives you until March 1 (after the final bill) to request an abatement from your town. Our appeal guide covers the evidence that works.
Bottom Line
In New Hampshire, the town line is the tax policy. The same $400,000 house can cost you $1,900 a year in Moultonborough, $7,600 in Manchester, or $16,700 in Claremont. Before you buy — or before you accept this year's bill — look up your town's full profile, compare it with its neighbors on our New Hampshire page, and check which exemptions you qualify for. And if you're weighing a move across state lines entirely, see how NH stacks up in our state-to-state comparison guide.