Public services in New Hampshire from schools to road maintenance depend heavily on one major revenue source: property taxes. But the way those taxes are structured creates big differences in what people pay and raises important questions about fairness, affordability, and how communities fund essential services. 

In this episode of New Hampshire Uncharted, NHFPI Executive Director Gene Martin speaks with NHFPI Research Director Phil Sletten to unpack his recent property tax report and break down how property taxes work, why New Hampshire relies on them so heavily, and what that means for Granite Staters. 

Why Property Taxes Can Look So Different Depending on Where You Live 

One of the most striking findings of Phil Sletten’s recent report is just how much property tax bills can vary, even between neighboring towns. 

As Gene Martin explains in the podcast, “a half a million dollar home in New Hampshire…could come with a property tax bill as low as $1,300 or as high as $18,000, all depending on entirely where you live.”  

Those differences are driven by a mix of factors, including property values, local service needs, and how much taxable property wealth a community has. Even towns right next to each other can have dramatically different tax bases, which affects how much each resident must contribute to fund schools, public safety, and infrastructure. 

A System Built Around Property Taxes 

Property taxes play a uniquely large role in New Hampshire compared to the rest of the country. 

Sletten notes that property taxes account for 61% of local government revenues, which is the highest share among local governments in any state in the nation.  

That’s largely because local governments in New Hampshire have limited revenue options. Cities and towns are limited by state law in how they can raise revenue, which is not true in every state, as some permit more policy creativity at the local level. The only major tax revenue source New Hampshire law permits local governments to have is the property tax. At the same time, the state government provides relatively little aid to local governments compared to most other states in the country. 

Overall, New Hampshire state and local government revenues combined, including taxes, federal aid, liquor and lottery revenue, and all other sources, rely more on property taxes to fund public services than any other state in the country. 

Who Pays and How Much 

The episode also explores how property taxes affect households across the income spectrum. 

Households with lower incomes pay a larger share of their income in property taxes than those with higher incomes. As Sletten explains, the effective rate is an estimated 5.9% for the lowest-income group, compared to about 2% for the highest earners.  

Gene Martin also highlights that it’s not just property owners who pay. “Whether you rent or own your own home, you’re paying property taxes either directly or indirectly.” 

The Bigger Picture 

New Hampshire’s reliance on property taxes reflects long-standing policy choices about how to fund government and distribute responsibility between the state and local communities.  

This episode highlights how those choices shape everything from tax bills to housing affordability and why discussions about property taxes are about more than just revenue: they’re about how communities invest in themselves and who ultimately pays. 

About New Hampshire Uncharted 

New Hampshire Uncharted goes beyond the charts and graphs to explore the policy issues shaping the Granite State, backed by data-driven research from NHFPI. 

To keep up with new episodes and NHFPI’s latest work, subscribe wherever you get your podcasts and visit nhfpi.org/podcast.