Navigating Property Tax Management: Strategies for Optimizing Tax Expenses

Navigating Property Tax Management: Strategies for Optimizing Tax Expenses

If you own property in New Hampshire, you've probably grumbled about your tax burden at some point.

After all, clocking in at 1.61% of the property's value per year, New Hampshire has the unfortunate distinction of boasting the fourth-highest property taxes in America. Whether your property is sitting empty or being rented out, those property taxes are your burden to bear.

However, with the right approach to property tax management, you can get the deductions and credits you are entitled to, and keep more of your money in your pocket. Here are our top tips for optimizing tax costs for New Hampshire property owners.

Understand Your Exact Tax Rate

The first step of property tax planning is to know what you owe. As mentioned, property owners are generally subject to a 1.61% annual levy.

However, that's not the full story. Different jurisdictions also set local rates, which may be based on voter-approved initiatives to maintain the area.

For example, Portsmouth and Londonderry each have differing property tax rates right now. Before you can pursue any tax reduction strategies, you need to know exactly what your tax bill will be.

Appeal Your Tax Burden

Property taxes in New Hampshire are based on assessments. Government assessors will determine the market value of your property based on factors like location, number of rooms, and square footage, and then calculate your tax bill accordingly.

This can sometimes be opaque and unfair, especially when assessors decide that any upgrades or repairs you have completed should make you liable to pay more tax. However, you can and should appeal your assessment.

Filing an appeal is easy, and is an opportunity to argue that your home's value and corresponding tax burden is too high and should be lowered. This simple step can dramatically lower your taxes.

Apply for NH Tax Relief

Did you know that you can apply for partial or total relief from your property taxes? One of our top tax management tips for NH is to check whether you fit the criteria for tax relief.

As of 2024, senior citizens, veterans, those with a diagnosed disability, and low-income property owners are all eligible for significant tax deductions. On top of this, you can also apply for your property taxes to be tax deductible, meaning that you can offset this payment via a reduction in your income taxes.

This might seem unusual, but it is just one of many quirks of the NH tax code that you can use to your advantage. Other real estate tax tips include making sure to apply for a mortgage interest rate deduction, as NH allows this as a tax write-off.

Expert Property Tax Management in New Hampshire

Property tax management might seem like an administrative burden. However, taking the time to do this now could save you thousands of dollars a year.

By appealing, applying for relief, and getting every deduction you can, you can lower your tax burden and have more of your capital left over to reinvest in your property portfolio.

If you need expert guidance on lowering your property tax bill, we have got you covered. At PMI Granite State, we offer tailored and local investment guidance to NH landlords. Give us a call to find out exactly how we can help today.