by Concord, New Hampshire – While New Hampshire is one of the most tax-friendly states in the U.S., it also provides additional financial relief to older residents through property tax exemptions for seniors over 65. Unlike other states that rely on income tax deductions, New Hampshire focuses on reducing property taxes, which is especially important given that the state does not levy a broad income or sales tax.
No State Income Tax but Higher Property Taxes
According to Kiplinger, One of the biggest benefits of retiring in New Hampshire is that there is no state income tax on wages, Social Security, pensions, or retirement account withdrawals. As of January 2025, the state also fully repealed its tax on dividends and interest, making it even more attractive for retirees.
However, property taxes are among the highest in the nation, with a median effective rate of 1.61% of assessed home value. For seniors on fixed incomes, these property taxes can become a financial burden. That’s where New Hampshire’s elderly exemptions come in.
Property Tax Exemptions for Seniors Over 65
Although the state does not have a traditional “extra standard deduction” for income tax purposes, it offers generous property tax exemptions based on age. These exemptions reduce the taxable value of a senior’s primary residence, directly lowering their annual property tax bill.
For example, in Concord, qualifying seniors may receive the following exemptions:
- Ages 65–74: $80,000 reduction in assessed value
- Ages 75–79: $131,000 reduction
- Ages 80+: $223,000 reduction
In Lebanon, the amounts are even higher:
- Ages 65–74: $116,000 reduction
- Ages 75–79: $164,000 reduction
- Ages 80+: $290,000 reduction
These exemptions can save seniors thousands of dollars per year, depending on the property’s assessed value and the local tax rate.
Who Qualifies for These Exemptions?
Eligibility for senior property tax exemptions in New Hampshire varies slightly by municipality, but most towns require applicants to meet the following criteria:
- Be 65 years of age or older as of April 1 of the tax year
- Be a New Hampshire resident for at least three years
- Own the residence (or, if owned by a spouse, be married for at least five years)
- Meet income limits, such as under $44,100 for single residents or $63,000 for married couples in Concord
- Keep net assets under $150,000 (not including the primary residence)
Applicants generally need to provide proof of age, residency, income (such as Social Security benefit statements or tax returns), and an inventory of assets. Applications must be submitted to the local assessor’s office, typically by April 15.
Why This Matters for Seniors
For retirees living on fixed incomes, the property tax exemption can be a financial lifeline. By reducing the taxable value of their home, seniors can cut annual property tax bills by hundreds or even thousands of dollars. Since New Hampshire already has no income or sales tax, these property tax exemptions serve as the state’s main form of tax relief for older residents.
The program is also progressive by age—offering larger exemptions to residents over 75 and 80, ensuring that the oldest seniors, who may face the greatest financial challenges, receive the most assistance.
Read Also: Understanding the Nevada Extra Standard Deduction for Seniors Over 65
How Seniors Can Apply
Seniors interested in applying should:
- Visit their town or city assessor’s office website for specific forms and income/asset limits
- Gather necessary documentation, including proof of residency and income records
- Submit applications before the annual deadline, usually in mid-April
- Reapply annually if required, as towns may ask for updated financial documents
Key Takeaway
New Hampshire’s tax structure is already favorable to retirees, but the extra property tax exemptions for seniors over 65 provide significant added relief. While there’s no state-level income tax deduction for seniors, the elderly exemption system effectively reduces housing costs, ensuring older residents can remain in their homes with greater financial security.
Are you or your loved ones planning retirement in New Hampshire? Share your thoughts and experiences in the comments at ibwhsmag.com—your insights could help other seniors make smarter financial decisions.
