Property tax exemption and credits application deadline is April 15

CONCORD — Property taxes are unaffordable for many homeowners across the state who are older, have disabilities, and/or have low income.  If taxes are not paid by the due date, interest is charged, first at 8% and then at 14% after the town or city takes a tax lien.  Eventually, the town or city can take the home to pay off the taxes owed, and evict the homeowner by court process.

A homeowner can reduce the burden of property taxes by seeking tax relief such as an exemption or credit.  An exemption reduces the property value on which the homeowner is taxed.  A credit is a direct reduction of the amount of the taxes.

To request property tax exemptions and/or credits for this year, the homeowner must submit a completed application form to his/her town or city no later than April 15. Towns and cities should have applications available.  Applications also are available online or can be requested by phone from the Department of Revenue.

Homeowners

age 65 and older

All towns and cities must have a tax exemption for taxpayers who are age 65 and older.  However, each municipality decides the amount, and many municipalities have a higher exemption amount for older taxpayers.  The minimum exemption is $5,000 of the assessed value of the home. Some municipalities have a much larger exemption, but even a small one makes a difference in the taxes.  Municipalities also set their own income and asset limits for the exemption.  The minimum annual income limit is $13,400 for a single person and $20,400 for a married couple.  The minimum asset limit is $35,000, excluding the value of the home.  The taxpayer also must have lived in New Hampshire for the last three years.

Persons with disabilities

Some municipalities have adopted a property tax exemption for people who are disabled under the federal Social Security Act and receive Social Security Disability Insurance or Supplemental Security Income disability benefits.  Towns also can choose to extend the exemption to any person who still is disabled but no longer receives SSDI or SSI (and provides an affidavit from a New Hampshire doctor stating that the homeowner continues to be disabled according to Social Security Administration rules).  Each municipality sets its own income and asset limits for this exemption.

Some municipalities have adopted property tax exemptions for people who are legally blind or deaf (or severely hearing-impaired).  If a municipality has adopted such an exemption, at least $15,000 must be deducted from the assessed value of the home.  A town or city may adopt a higher exemption to address significant increases in property values.

Veterans and spouses

Any honorably discharged veteran who served in the U.S. armed forces for at least 90 days on active service in World War I or II, the Korean Conflict, the Vietnam Conflict, or the Persian Gulf War, or who served in another war or armed conflict between July 1958 to December 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.  This tax credit is also available to any veteran whose service ended because of a service-connected disability, or who served on active duty in the armed forces of any allied government in any of the wars or conflicts listed above, and who, at the time, was a U.S. citizen or a resident of New Hampshire.  The surviving spouse of such a veteran is also entitled to this credit. Municipalities have the option of increasing this veterans’ credit up to $750 for all qualified veterans and surviving spouses.   

A credit of $700 is available for veterans who became totally disabled due to a service-related injury, or the surviving spouse of any veteran who died in one of the wars or conflicts listed above.  Municipalities have the option of increasing this veterans’ credit up to $4,000.  

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.  

Combat service

Municipalities also can choose to enact a tax credit in an amount between $50 and $500 for persons engaged in combat service at any point during the taxable period.  The application must be accompanied by the service member’s military orders.  This application can be submitted at any point during the tax year; however, a late application may affect the amount of the credit, and whether it is applied in that year.

Disability-related

home improvements

A town or city cannot increase property taxes for improvements made to a home to help a person with a disability who uses special

equipment for mobility, or a person who is deaf or severely hearing impaired.  Rather, the homeowner may only be taxed on the value of the home before the improvements. The value of the improvements is deducted from the assessed value.  The homeowner and the person for whom the improvements were made must reside in the home during the year in which the exemption is claimed. 

How to apply

Use the New Hampshire Department of Revenue Administration’s Form PA-29 “Permanent Application for Property Tax Credits/Exemptions” to apply for all of these exemptions and credits.  The form is available on the DRA’s website as follows: revenue.nh.gov/sites/g/files/ehbemt736/files/documents/pa-29-2023_pro.pdf.  The form can also be requested by calling the Department of Revenue Administration at 230-5001.  The “general instructions” of the form explain residency and other additional requirements. Completed forms should be returned to the town/city office. 

The town/city will have until July 1 prior to the date of the final tax bill (usually sent in November or December) to make decisions on credits and exemptions. If the taxpayer disagrees with the town/city’s decision or the town/city does not make any decision, the taxpayer may file an appeal with either the Superior Court or the Board of Tax and Land Appeals by September 1 of the year following the tax bill. 

— New Hampshire Legal Assistance