In 2022, New Hampshire cities and towns derived 61% of their total revenues from property taxes — the highest proportion of any state in the country. The average Granite State taxpayer paid $3,388 per person in local property taxes, second only to New Jersey’s $3,617. The national average was $1,943.
And yet, despite that enormous tax burden, New Hampshire municipalities ranked 40th in overall per-capita revenue from all sources — collecting just $5,076 per person compared to a national average of $7,021. The state provides only 23% of local government spending, ranking 44th nationally.
The report attributes the paradox to structural limitations. As a “Dillon’s Rule” state, New Hampshire municipalities can only take actions expressly authorized by the Legislature. Without authorization for local sales taxes, gas taxes, or restaurant and lodging taxes, property taxes are the only lever available.
The divide between property-rich and property-poor towns creates stark inequalities. A family in a $500,000 home in a wealthy town with high property values will pay less in taxes and receive better services than a family in an identically priced home in a poorer town. Businesses feel the squeeze too — 45.2% of New Hampshire business taxes are local property taxes.
House Majority Leader Jason Osborne pushed back hard on the report’s conclusions. “If your property tax bill looks like a ransom note, don’t let the NHFPI lie to your face,” the Auburn Republican said. “Our towns don’t have a revenue problem; they have a spending problem.” Osborne pointed to House Bill 1300, the “Property Tax Protection Act,” which passed the House in March and would allow voters to adopt school district property tax caps at the ballot box every two years.
Democrats counter that the bill would hurt school budgets and violate local control over ballot questions.
