Need Property Tax Relief?

Tax Exemption and Credits are available for Veterans, Homeowners over Age 65, People with Disabilities – Deadline is April 15
New Hampshire homeowners 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. Applications are available on-line and from the Department of Revenue. See more detailed information on this process below.

Tax Exemptions for Homeowners Age 65 and Older:

All towns and cities must have a tax exemption for taxpayers who are age 65 and older. The minimum exemption is $5,000 of the assessed value of the home, but each municipality decides the amount, and many allow a larger exemption for older taxpayers. 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. To be eligible, taxpayers must have lived in New Hampshire for the last three years.

Tax Exemptions for Persons with Disabilities:

Some municipalities have adopted property tax exemptions for people who are legally blind, 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, but a town or city may adopt a higher exemption to address significant increases in property values.

Some municipalities have adopted a property tax exemption for people who are disabled under the guidelines of the federal Social Security Act. Each municipality sets its own income and asset limits for this exemption.

Tax Credits for Veterans and their Surviving Spouses:

Any honorably discharged veteran who served in the United States armed forces for at least 90 days 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 a 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 United States 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 $500 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 $2,000.

Total Tax Exemption for Certain Veterans:

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.

Tax Exemption for Certain 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 for Exemptions and Credits and the Appeal Process

Use the New Hampshire Department of Revenue Administration (DRA)’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:
http://www.revenue.nh.gov/forms/2013/documents/pa-29.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. Submit the completed form at your town or city offices.

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.

Information for all towns and cities in New Hampshire on the amount of the exemptions, whether a municipality has adopted an optional exemption, and the income and asset limits for exemptions, as well as the amounts of the various veterans’ credits, is available at:
http://www.revenue.nh.gov/mun-prop/property/equalization-2013/documents/etc-alpha.pdf
(Note: the Department of Revenue can provide the most current information.)

Additional Information:

Consider asking your Town/City to increase the amounts of the optional exemptions and credits.

Homeowners who need legal advice about property tax relief can contact the Legal Advice and Referral Center (LARC) by submitting an on-line application at www.nhlegalaid.org, or by calling (603) 224-3333. Persons at least 60 years old can contact New Hampshire Legal Assistance’s Senior Citizens Law Project at 1-888-353-9944.

New Hampshire Legal Assistance is the only state-wide non-profit law firm representing New Hampshire’s poor and elderly. Our advocates represent homeowners who are seniors, low-income, or have disabilities in property tax cases. NHLA publishes a pamphlet that describes what property tax relief is available and the process for seeking assistance. The pamphlet “Having Trouble Paying For Property Taxes?” is available at http://nhla.org/resourcesp/pamphlets-23 or can be requested by calling Donna at 224-4107, or by e-mail to dgiddings@nhla.org.