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The Real BigGuy 04-11-2026 02:08 PM

NH Real Estate Taxes
 
Interesting article in Saturday’s (4/11) Boston Globe. The article states that “Granite Staters paid approximately $3,388 per person in property taxes in 2022, the second-highest level in the country.” It goes on to state that residents with the lowest incomes pay about 3.9% more of their income on property taxes than the highest earners.

Seems to make a good argument for an income tax IF there could be an agreement to proportionately reduce property taxes. And that will only happen in my dreams!

TomC 04-11-2026 02:19 PM

Lower income people pay a higher portion of their income on everything they purchase: food. clothes, cars, etc. That's just how math works if a product or service is offered at a fixed price and not scaled. I think (hope) an income tax faces an uphill battle in this state. At least property taxes are established at the local government level where citizens are (or should be) involved along side their neighbors in how property taxes are spent. A state-run tax authority will eventually say "here's your income tax bill, like it or lump it..."

The Real BigGuy 04-11-2026 03:30 PM

I agree with your basic thesis but, when I think income tax, I think of a graduated tax so it is more proportional to your ability to pay. With regards to local control over property tax, most of what I have heard/read over the past year or so has been less than complimentary.

8gv 04-11-2026 07:09 PM

Most states have an income tax.

If that is what one desires it can easily be found elsewhere.

TiltonBB 04-11-2026 07:16 PM

Florida Governor Ron DeSantis wants to eliminate property taxes in Florida. New Hampshire could follow Florida but without a sales tax in NH there would be a real revenue problem! Government funding has to come from somewhere.

Florida's property tax elimination plan for 2026 could make Florida the first state with no income tax AND no property tax on homes. HJR 203 passed the House 80-30 but died in the Senate when the regular session ended March 13. A special session is set for the week of April 20.

https://www.propertyexemption.com/gu...tion-desantis/

Garcia 04-11-2026 07:53 PM

Quote:

Originally Posted by TiltonBB (Post 406718)
Florida Governor Ron DeSantis wants to eliminate property taxes in Florida. New Hampshire could follow Florida but without a sales tax in NH there would be a real revenue problem! Government funding has to come from somewhere.

Florida's property tax elimination plan for 2026 could make Florida the first state with no income tax AND no property tax on homes. HJR 203 passed the House 80-30 but died in the Senate when the regular session ended March 13. A special session is set for the week of April 20.

https://www.propertyexemption.com/gu...tion-desantis/

I'm all for lower taxes, but someone please explain to me how a state can eliminate property tax, maintain no income tax, and provide the services people want.

Please don't say cut waste or spending significantly as, lets be honest, there is no stomach for it. DOGE and the Trump administration swept in (Trump for the second time) and guess what? The deficit continues to go up and all the hype about waste and inefficiencies did not pan out.

Are we ever going to get serious or are we going to continue to blame "the other", advocate for our needs while calling the needs of others waste and continue down the unsustainable path we are on? Sadly, I don't see meaningful conversations let along change anywhere on the horizon.

John Mercier 04-11-2026 08:02 PM

Couple of basics.

Income taxes cannot be "graduated" in NH; our State Constitution does not allow for it.
Also the tax would fall on residents, while non-resident property owners would see tax relief.

Not a very bright idea to win elections.

As for the Florida proposal...

"HJR 203: Phased Elimination Over 10 Years
PASSED HOUSE 80-30 (Feb 19, 2026) | Died in Senate (Mar 13) | Special Session Apr 20
Sponsor: Rep. Monique Miller (R-Palm Bay)

Potential Impact: This proposal takes a gradual approach, increasing the homestead exemption by $100,000 annually for ten years, reaching complete elimination of non-school taxes by January 1, 2037. For a homeowner with a $400,000 assessed value, they'd see incremental savings growing each year - potentially $1,000-1,500 in year one, increasing annually until reaching full elimination of non-school taxes in year ten. The phased approach spreads the revenue impact over a decade, giving local governments and the state time to develop alternative revenue sources and adjust spending."

Not sure this would be found constitutional in NH either, as it would affect local financing and may violate Part First Article 28-a.

The State legislature could remove by exemption under a homestead-style plan the SWEPT on residents. But it would need to be crafted to protect renters, businesses, etc or have a much larger impact than intended.

Even then, the SWEPT is so low as to not provide an exceptional level of tax reduction even to those that found relief under it.

The relatively low levels of State taxation would require them to raise the rate and then implement such a plan; again with much more of an impact than they might intend.

This is why several "targeted" proposals rather than a "general" taxation with exemptions is what the State Legislature discusses.

I did see a private citizen write to the Berlin Daily Sun suggesting an "enhanced" taxation for tourism *Meals & Room*; but I think that if the State could just enforce the current rate on STRs, that may accomplish more than one thinks.

They could also remove mandates so they would not need to keep making testimony before the courts that they are not fully funding mandates as required by Part First Article 28-a. Not sure how anyone can take an oath before God and then willing ignore that article; maybe Hell isn't as bad as I imagine it to be.

TheTimeTraveler 04-11-2026 09:32 PM

Quote:

Originally Posted by Garcia (Post 406719)
I'm all for lower taxes, but someone please explain to me how a state can eliminate property tax, maintain no income tax, and provide the services people want.

Please don't say cut waste or spending significantly as, lets be honest, there is no stomach for it. DOGE and the Trump administration swept in (Trump for the second time) and guess what? The deficit continues to go up and all the hype about waste and inefficiencies did not pan out.

Are we ever going to get serious or are we going to continue to blame "the other", advocate for our needs while calling the needs of others waste and continue down the unsustainable path we are on? Sadly, I don't see meaningful conversations let along change anywhere on the horizon.

Don't they call that "Vodoo Economics" ?

John Mercier 04-11-2026 11:07 PM

Tax shifting...

Would be tax-free:
Your primary residence (homesteaded)
Condominiums and townhomes (if homesteaded)

Would pick up the extra taxes to cover the budget cost of services:
Vacation and second homes
Rental and investment properties
Commercial real estate
Vacant land and lots

Biggd 04-12-2026 09:03 AM

Quote:

Originally Posted by The Real BigGuy (Post 406709)
Interesting article in Saturday’s (4/11) Boston Globe. The article states that “Granite Staters paid approximately $3,388 per person in property taxes in 2022, the second-highest level in the country.” It goes on to state that residents with the lowest incomes pay about 3.9% more of their income on property taxes than the highest earners.

Seems to make a good argument for an income tax IF there could be an agreement to proportionately reduce property taxes. And that will only happen in my dreams!

I think a sales tax would be better than an income tax but adding another tax doesn't guarantee that property taxes will go down!
Give the State more money and they will find a way to spend it all!

TomC 04-12-2026 09:42 AM

Quote:

Originally Posted by Biggd (Post 406739)
I think a sales tax would be better than an income tax but adding another tax doesn't guarantee that property taxes will go down!
Give the State more money and they will find a way to spend it all!

For sure. I wonder if a sales tax is an anchor on large purchases. I know when I lived in MA, I put off buying big ticket items as long as possible (or went across the border to NH to get them if they were transportable). This was especially true of car purchases. It always chapped me to have to fork over thousands to put a new (or new to me) car on the road. Then fill it up with gasoline that is heavily taxed, then not long after that the town excise tax bill would turn up. Taxes on top of taxes on top of taxes... there's even a federal excise tax on your tires in many cases!

Biggd 04-12-2026 10:06 AM

Quote:

Originally Posted by TomC (Post 406742)
For sure. I wonder if a sales tax is an anchor on large purchases. I know when I lived in MA, I put off buying big ticket items as long as possible (or went across the border to NH to get them if they were transportable). This was especially true of car purchases. It always chapped me to have to fork over thousands to put a new (or new to me) car on the road. Then fill it up with gasoline that is heavily taxed, then not long after that the town excise tax bill would turn up. Taxes on top of taxes on top of taxes... there's even a federal excise tax on your tires in many cases!

NH is a highly touristed State! At least out of staters would have to pay a good portion of it. An income tax would only hit residents.

tis 04-12-2026 11:13 AM

Quote:

Originally Posted by Garcia (Post 406719)
I'm all for lower taxes, but someone please explain to me how a state can eliminate property tax, maintain no income tax, and provide the services people want.

Please don't say cut waste or spending significantly as, lets be honest, there is no stomach for it. DOGE and the Trump administration swept in (Trump for the second time) and guess what? The deficit continues to go up and all the hype about waste and inefficiencies did not pan out.

Are we ever going to get serious or are we going to continue to blame "the other", advocate for our needs while calling the needs of others waste and continue down the unsustainable path we are on? Sadly, I don't see meaningful conversations let along change anywhere on the horizon.

Why are people so convinced they need the government to take care of them? Towns and cities need police, fire infrastructure, but there are a lot of things that are not necessities.

Garcia 04-12-2026 11:56 AM

Quote:

Originally Posted by tis (Post 406747)
Why are people so convinced they need the government to take care of them? Towns and cities need police, fire infrastructure, but there are a lot of things that are not necessities.

But how do you convince people of that? One persons extra is another’s necessity.

I working in a school. When townspeople hear how expensive some services, required by law, are, they are outraged. Yet when their child needs something, they sings a different tune. This exact thing happened in my school district recently.

Biggd 04-12-2026 12:24 PM

One person's wants are another person's needs!

Descant 04-12-2026 01:01 PM

Our constitutional article 28-a essentially says the legislature can't mandate programs without paying for them. However, there is an exception for programs that existed before 28-a was enacted. And, if the going price for said service is $2.00, local districts often find ways to enhance the program once it is place and the cost goes to $4.00. Around 2000, there was a big push for kindergarten in public schools. First, half -day, then full day. There are some educational plusses here, but many voted for it because it relieved them of the cost of day care for their little ones. Totally ignored the fact that now they were paying for day care for the rest of their lives, not just while their kids were preschool age. The tendency over the last six decades, has been for schools to increase services and accreditation requirements. A few years ago our local high school "had to" build a track because we crossed an enrollment threshold and a track was required to remain accredited. Enrollment has gone down, but we will spend hundreds of thousands every few years to maintain/rebuild the track.

As long as Representatives and Senators campaign on a basis of "look what I got for you" instead of "look how I cut your taxes" we will be in an upward spending spiral.

There is a CACR (Constitutional Amendment Concurrent Resolution) pending this year. If it passes, a constitutional amendment will be added to prohibit income tax in NH. It will be interesting to see how that affects the BPT for independent lawyers, and accountants, or trades people who essentially pay an income tax on a private practice.

I could see property tax relief in the form of a reverse mortgage. Let the accumulated unpaid tax for certain elders build up and pay it with interest when you move out and sell the house.

John Mercier 04-12-2026 01:01 PM

Quote:

Originally Posted by Biggd (Post 406739)
I think a sales tax would be better than an income tax but adding another tax doesn't guarantee that property taxes will go down!
Give the State more money and they will find a way to spend it all!

We have lots of sales taxes.
NH uses a direct format rather than a general with exemptions.

John Mercier 04-12-2026 01:04 PM

Quote:

Originally Posted by Biggd (Post 406744)
NH is a highly touristed State! At least out of staters would have to pay a good portion of it. An income tax would only hit residents.

No. The latest numbers for tourist is $4.2 billion. About the same number we had in 2000. When inflation is taken into account we are actually way down.

In 2000, tourism was about 8% of the economy, today it is about 3.5%

John Mercier 04-12-2026 01:10 PM

Quote:

Originally Posted by Descant (Post 406753)
Our constitutional article 28-a essentially says the legislature can't mandate programs without paying for them. However, there is an exception for programs that existed before 28-a was enacted. And, if the going price for said service is $2.00, local districts often find ways to enhance the program once it is place and the cost goes to $4.00. Around 2000, there was a big push for kindergarten in public schools. First, half -day, then full day. There are some educational plusses here, but many voted for it because it relieved them of the cost of day care for their little ones. Totally ignored the fact that now they were paying for day care for the rest of their lives, not just while their kids were preschool age. The tendency over the last six decades, has been for schools to increase services and accreditation requirements. A few years ago our local high school "had to" build a track because we crossed an enrollment threshold and a track was required to remain accredited. Enrollment has gone down, but we will spend hundreds of thousands every few years to maintain/rebuild the track.

As long as Representatives and Senators campaign on a basis of "look what I got for you" instead of "look how I cut your taxes" we will be in an upward spending spiral.

There is a CACR (Constitutional Amendment Concurrent Resolution) pending this year. If it passes, a constitutional amendment will be added to prohibit income tax in NH. It will be interesting to see how that affects the BPT for independent lawyers, and accountants, or trades people who essentially pay an income tax on a private practice.

I could see property tax relief in the form of a reverse mortgage. Let the accumulated unpaid tax for certain elders build up and pay it with interest when you move out and sell the house.

The court has found several times that we violated Part First Article 28-a; and even have testimony from Edelblut to that factor. His testimony was "yes, it is an unfunded mandate, but not one dealing with education". Since he sat in the Legislature and went along with the unfunded mandate... guilty as charged.

garysanfran 04-12-2026 01:55 PM

Quote:

Originally Posted by John Mercier (Post 406754)
No. The latest numbers for tourist is $4.2 billion. About the same number we had in 2000. When inflation is taken into account we are actually way down.

In 2000, tourism was about 8% of the economy, today it is about 3.5%

As towns limit the amount of vacation rentals, this will continue.

garysanfran 04-12-2026 01:59 PM

Quote:

Originally Posted by Biggd (Post 406739)
I think a sales tax would be better than an income tax but adding another tax doesn't guarantee that property taxes will go down!
Give the State more money and they will find a way to spend it all!

A sales tax catches unreported income from cash transactions, like drug dealers, hookers and others who work for "under-the-table" cash.

Biggd 04-12-2026 02:23 PM

Quote:

Originally Posted by John Mercier (Post 406754)
No. The latest numbers for tourist is $4.2 billion. About the same number we had in 2000. When inflation is taken into account we are actually way down.

In 2000, tourism was about 8% of the economy, today it is about 3.5%

That may be true, but a sales tax still makes out of staters contribute to the tax burden instead of levying it all on residents. Also, I'm curious as to how they measure tourism. Do they count the second homeowners who may stay in their summer homes all summer and have to make purchases all summer long? There has been a significant increase in those tourists since 2000, I'm one of them!
When I make expensive purhaces I make them in NH or have them delivered to my home in NH.

John Mercier 04-12-2026 03:21 PM

Quote:

Originally Posted by Biggd (Post 406759)
That may be true, but a sales tax still makes out of staters contribute to the tax burden instead of levying it all on residents. Also, I'm curious as to how they measure tourism. Do they count the second homeowners who may stay in their summer homes all summer and have to make purchases all summer long? There has been a significant increase in those tourists since 2000, I'm one of them!
When I make expensive purhaces I make them in NH or have them delivered to my home in NH.

UNH does it by a mixture of the revenue generated by the Meals & Room taxes along with direct surveys to the communities that make up most of it.

They count everything whether you come here for the weekend, the season, or even live here.

What they may be missing is things like miniature golf.

And we do have sales taxes. I pointed that out.
It is why I do not pay a tax at the market for food that I will prepare at home (a need) as compared to the restaurant will the prepared food (a want).
Other State apply a general sales tax and then an exemption for the market; which just direct the sales tax.

WinnisquamZ 04-12-2026 03:26 PM

Quote:

Originally Posted by garysanfran
As towns limit the amount of vacation rentals, this will continue.

Towns or city aren’t limiting vacation rentals. They are requiring vacation rentals to apply for permits and take reasonable like any other business


Sent from my iPhone using Winnipesaukee Forum mobile app

John Mercier 04-12-2026 03:43 PM

Quote:

Originally Posted by garysanfran (Post 406756)
As towns limit the amount of vacation rentals, this will continue.

The localities have little power on the issue.

Which is why DeSantis is making a proposal were all the property taxes would be moved toward those properties and thus make them worthwhile for the localities to harbor.

Currently, local residents feel that the costs are being socialized and the revenue is being privatized.
Under their limited empowerment, removing the STRs increases the value of re-establishing hotel, motel, cottage colonies, etc.

DeSantis' proposal changes that thinking around.

tis 04-12-2026 04:05 PM

Quote:

Originally Posted by Garcia (Post 406749)
But how do you convince people of that? One persons extra is another’s necessity.

I working in a school. When townspeople hear how expensive some services, required by law, are, they are outraged. Yet when their child needs something, they sings a different tune. This exact thing happened in my school district recently.

That's the problem. Everybody has their pet project and expects everybody else to pay for it.

Garcia 04-12-2026 04:07 PM

Quote:

Originally Posted by John Mercier (Post 406762)
The localities have little power on the issue.

Which is why DeSantis is making a proposal were all the property taxes would be moved toward those properties and thus make them worthwhile for the localities to harbor.

Currently, local residents feel that the costs are being socialized and the revenue is being privatized.
Under their limited empowerment, removing the STRs increases the value of re-establishing hotel, motel, cottage colonies, etc.

DeSantis' proposal changes that thinking around.

NH has decided to collect money through property tax and maintain no income or general sakes tax - and thus is in the top 5 of the states with the highest property tax. Florida's property tax is in the middle of the states, about average. BUT FL has a statewide sales tax of 6% and allows local surtaxes creating an effective rate of 6.5%-7%.

DeSantis does not have a real proposal yet to eliminate property tax, it's more of an idea. To make up the lost revenue, guess what has to go up? Sales tax.

Garcia 04-12-2026 04:15 PM

Quote:

Originally Posted by tis (Post 406763)
That's the problem. Everybody has their pet project and expects everybody else to pay for it.

Or you can look at it as safe roads, police and fire protection and service, good schools, public parks, and more are the shared responsibility of all and the costs need to be shared.

Or maybe when your house is burning down it's up to you to pay the fire department, or only people who have children in the school should have to pay. It's kind of the approach we take with healthcare - if you choose not to have it you are on the hook for the cost of the service provided

tis 04-12-2026 04:40 PM

Quote:

Originally Posted by Garcia (Post 406765)
Or you can look at it as safe roads, police and fire protection and service, good schools, public parks, and more are the shared responsibility of all and the costs need to be shared.

Or maybe when your house is burning down it's up to you to pay the fire department, or only people who have children in the school should have to pay. It's kind of the approach we take with healthcare - if you choose not to have it you are on the hook for the cost of the service provided

For me one big change in budgets is recreation. Their budgets have gotten huge. Sure it's nice to have, but is it really necessary, should it really be a part of government? I guess we can't entertain ourselves any more either?

garysanfran 04-12-2026 05:08 PM

I believe out-of-state students were allowed to vote in NH up until recently.

As an out-of-state New Hampshire taxpayer, I have always resented not being able to vote on issues that affect me greatly.

My property tax in San Francisco is approx. 1/4 of my NH tax. In NH I get very little in return.

garysanfran 04-12-2026 05:11 PM

The effect of COVID on property values was astronomical. Didn't this create an economic windfall for towns?

John Mercier 04-12-2026 05:12 PM

They had to reside here.

There was a debate about residing here, as they could not claim in-state tuition until their second year.

John Mercier 04-12-2026 05:17 PM

Quote:

Originally Posted by garysanfran (Post 406770)
The effect of COVID on property values was astronomical. Didn't this create an economic windfall for towns?

No.
It only made the tax rates drop.

But it isn't COVID that did it.
I, and others, had been predicting it since 2003 as Boomers reached retirement age and were no longer tied to urban centers for their career.

The rise in the cost of housing predicates a rise in salaries, and since the municipalities are highly affected by salaries directly and through the cost of items, it created higher budgets.
The budgets have a delay function due to the cycles being elongated, but when they hit... well... this is what Meredith is dealing with.

John Mercier 04-12-2026 05:19 PM

Quote:

Originally Posted by Garcia (Post 406764)
NH has decided to collect money through property tax and maintain no income or general sakes tax - and thus is in the top 5 of the states with the highest property tax. Florida's property tax is in the middle of the states, about average. BUT FL has a statewide sales tax of 6% and allows local surtaxes creating an effective rate of 6.5%-7%.

DeSantis does not have a real proposal yet to eliminate property tax, it's more of an idea. To make up the lost revenue, guess what has to go up? Sales tax.

If you read the notes to the bill... NO.
Taxes would go down on residents of the State, and up on all other properties to make up the difference.

The budgets would remain the budgets... just the tax rate on the remaining taxable properties would surge.

Garcia 04-12-2026 05:45 PM

Quote:

Originally Posted by John Mercier (Post 406773)
If you read the notes to the bill... NO.
Taxes would go down on residents of the State, and up on all other properties to make up the difference.

The budgets would remain the budgets... just the tax rate on the remaining taxable properties would surge.

You are correct on the idea but the reality is to make up the difference additional revenue - sales tax - will be needed.

Biggd 04-12-2026 07:48 PM

Quote:

Originally Posted by garysanfran (Post 406770)
The effect of COVID on property values was astronomical. Didn't this create an economic windfall for towns?

Yes, and they spent it!

Biggd 04-12-2026 07:51 PM

Quote:

Originally Posted by John Mercier (Post 406773)
If you read the notes to the bill... NO.
Taxes would go down on residents of the State, and up on all other properties to make up the difference.

The budgets would remain the budgets... just the tax rate on the remaining taxable properties would surge.

But the budgets go up! They have to because of inflation!

8gv 04-12-2026 08:03 PM

As this conversation evolves a few things come to mind:

The op posted about NH property taxes being high. When compared to other states this may be the case but what is the total tax load on our citizens? How does that compare to other states?

At the age of fifty-seven I moved from CT to NH. During my time in CT I watched the state go from having a small sales tax without an income tax to a growing sales tax which is currently 6.35% (with the exception of "luxury items" to include vehicles over $50k which are taxed at 7.75%) plus a meals tax at 7.35% and an income tax with rates ranging from 2% to 6.99%.

When I compare the property taxes of comparable homes in my previous CT town, they are at or above what I pay now in high tax Laconia. But that's not the end of it. On top of the property tax bill, CT residents get to pay the sales tax and income tax noted above!

Once the government gets the opportunity to add another tax they find ways to spend the money. More money brings more programs, often unnecessary ones, that can be used to influence more voters. This cycle feeds itself.

My observation of NH tax policy is that the state and local governments are held in a perpetual state of near starvation. Many would say that this is to the detriment of education and other services. This may be so but having seen what can happen when the Pandora's box of income tax is opened I say DON'T DO IT!

Biggd 04-12-2026 08:10 PM

Quote:

Originally Posted by John Mercier (Post 406760)
UNH does it by a mixture of the revenue generated by the Meals & Room taxes along with direct surveys to the communities that make up most of it.

They count everything whether you come here for the weekend, the season, or even live here.

What they may be missing is things like miniature golf.

And we do have sales taxes. I pointed that out.
It is why I do not pay a tax at the market for food that I will prepare at home (a need) as compared to the restaurant will the prepared food (a want).
Other State apply a general sales tax and then an exemption for the market; which just direct the sales tax.

If more people bought second homes, the meals and room taxes would be affected negatively. That could be why the numbers have decreased because it sure seems busier in the Lake's Region, the White Mountains, and along the coastal resort towns than it was in 2000!
People that own second homes aren't renting rooms and eating out as much. I'd be curious as to what the increase in second home purchases has been since 2000.

Garcia 04-12-2026 08:41 PM

Quote:

Originally Posted by 8gv (Post 406777)
As this conversation evolves a few things come to mind:

The op posted about NH property taxes being high. When compared to other states this may be the case but what is the total tax load on our citizens? How does that compare to other states?

At the age of fifty-seven I moved from CT to NH. During my time in CT I watched the state go from having a small sales tax without an income tax to a growing sales tax which is currently 6.35% (with the exception of "luxury items" to include vehicles over $50k which are taxed at 7.75%) plus a meals tax at 7.35% and an income tax with rates ranging from 2% to 6.99%.

When I compare the property taxes of comparable homes in my previous CT town, they are at or above what I pay now in high tax Laconia. But that's not the end of it. On top of the property tax bill, CT residents get to pay the sales tax and income tax noted above!

Once the government gets the opportunity to add another tax they find ways to spend the money. More money brings more programs, often unnecessary ones, that can be used to influence more voters. This cycle feeds itself.

My observation of NH tax policy is that the state and local governments are held in a perpetual state of near starvation. Many would say that this is to the detriment of education and other services. This may be so but having seen what can happen when the Pandora's box of income tax is opened I say DON'T DO IT!

Overall NH tax obligation is among the lowest among the 50 states. NH relies heavily on property tax. I don't know what the answer is and wonder of the current system is sustainable. Or, does it favor those who are leaving higher tax states, driving up housing prices, and making it harder for the next generation of NH residents to stay? It's already happened (happening?) with waterfront property and border locations.

John Mercier 04-12-2026 08:44 PM

Quote:

Originally Posted by Garcia (Post 406774)
You are correct on the idea but the reality is to make up the difference additional revenue - sales tax - will be needed.

No.
Same as NH.
If the total property assessment is $10 billion, and the budget is $10 million.
That is $1 per thousand for the rate on the valuation of each property.
If I remove $8 billion in residential valuation, then the budget of $10 million changes the rate to $5 per thousand.

The money is made up through the remaining property valuations that exist on the tax rolls.

The owner with the taxable property - lets say a second home - sees their taxes increase to five times what it would have been.

John Mercier 04-12-2026 08:46 PM

Quote:

Originally Posted by Biggd (Post 406776)
But the budgets go up! They have to because of inflation!

That would be a further increase in the rate against the taxable properties.

It is a very bad idea, but one that seems to be making the rounds.

John Mercier 04-12-2026 09:12 PM

Quote:

Originally Posted by Biggd (Post 406778)
If more people bought second homes, the meals and room taxes would be affected negatively. That could be why the numbers have decreased because it sure seems busier in the Lake's Region, the White Mountains, and along the coastal resort towns than it was in 2000!
People that own second homes aren't renting rooms and eating out as much. I'd be curious as to what the increase in second home purchases has been since 2000.

We think some of the effect is that STRs are not paying the tax as required.
We knew this for years as many would rent their homes for Bike Week, but never file a Meals & Room taxation form. That removes the money from the hotel/motel, but doesn't substitute out at the State treasury.

Laconia's change to require that, hopefully with the penalty being tax evasion and some time in prison, may get that back under control. As other municipalities will follow.

Whether they rent the whole structure or just a room for just a day, a weekend, a week, or a month will make no difference... they all must file and pay the tax.

The reason for the drop is largely snowmobiling. Snowmobiling accounted for roughly 25% of the number in 2000. It peaked at 78000 registrations around 2003. It has declined by more than 50% of users, and revenue is even lower.

About 80% of the revenue was from residents and second home owners in NH going all the way back to 2000. That hasn't changed much.

Garcia 04-12-2026 09:28 PM

Quote:

Originally Posted by John Mercier (Post 406780)
No.
Same as NH.
If the total property assessment is $10 billion, and the budget is $10 million.
That is $1 per thousand for the rate on the valuation of each property.
If I remove $8 billion in residential valuation, then the budget of $10 million changes the rate to $5 per thousand.

The money is made up through the remaining property valuations that exist on the tax rolls.

The owner with the taxable property - lets say a second home - sees their taxes increase to five times what it would have been.

Mark my words - if this gets approved in FL, sales tax, state and local will increase. Charging non residents 5 times more than residents will drive away non residents and/or have them become residents thus dropping their taxes significantly while also increasing their use of services.

John Mercier 04-12-2026 09:33 PM

Quote:

Originally Posted by Garcia (Post 406779)
Overall NH tax obligation is among the lowest among the 50 states. NH relies heavily on property tax. I don't know what the answer is and wonder of the current system is sustainable. Or, does it favor those who are leaving higher tax states, driving up housing prices, and making it harder for the next generation of NH residents to stay? It's already happened (happening?) with waterfront property and border locations.

It will self-correct.

tis 04-13-2026 05:14 AM

Quote:

Originally Posted by Garcia (Post 406783)
Mark my words - if this gets approved in FL, sales tax, state and local will increase. Charging non residents 5 times more than residents will drive away non residents and/or have them become residents thus dropping their taxes significantly while also increasing their use of services.

I agree. And why shouldn't they?

John Mercier 04-13-2026 07:43 AM

It is why I consider it a bad idea.
Populism can get one elected, but seldom has decent long term results.
It ignores economics and sociology.

Of course, the increase in residents may supply Florida with more House seats after the next census, and would entail them to more federal funds.

The Real BigGuy 04-13-2026 07:56 AM

I guess my basic issue with the NH philosophy is we are always looking for ways to shift our burden to others. We want non-resident home owners to pay for educating our children even though they already pay for educating their children in their residential location. We demand that island vacation home renters pay to plow our streets even though they have none. ETC. And on top of that we don’t let them have a say in how the local part of the taxes are spent or allow exemptions for services not received. I guess it is a “whose ox is being gored” thought process and really being driven by the tremendous increase in costs over the past few decades. In the long run it may actually drive non-resident second home owners out of the state and shift the burden back to the residents. But then, we have achieved our goal of pushing costs onto others. They just happen to be future generations.

BroadHopper 04-13-2026 08:52 AM

Take a look at this NHPR article. Value added tax system looks a lot favorable.

https://www.nhpr.org/nh-news/2026-04...e-report-taxes

TomC 04-13-2026 09:04 AM

Quote:

Originally Posted by The Real BigGuy (Post 406788)
I guess my basic issue with the NH philosophy is we are always looking for ways to shift our burden to others. We want non-resident home owners to pay for educating our children even though they already pay for educating their children in their residential location. We demand that island vacation home renters pay to plow our streets even though they have none. ETC. And on top of that we don’t let them have a say in how the local part of the taxes are spent or allow exemptions for services not received. I guess it is a “whose ox is being gored” thought process and really being driven by the tremendous increase in costs over the past few decades. In the long run it may actually drive non-resident second home owners out of the state and shift the burden back to the residents. But then, we have achieved our goal of pushing costs onto others. They just happen to be future generations.

But how is that different from other states? Second homeowners in other states pay for the school system, etc. As for the island resident argument... every mainlander chips in for the fireboat which they will never use...

John Mercier 04-13-2026 09:49 AM

The intent of our Founders was for conservative capitalism.

More effort put into production and conservation of resources.

Sort of Needs vs Wants.

I need shelter. I want a McMansion.
I need shelter. I want to live on the lake.
I need shelter. I want to have a second home.

Major 04-13-2026 10:05 AM

Well said
 
We are going through a similar exercise with our law firm. We lost a relatively large client (through no fault of anyone at the firm), which lead to a revenue shortfall for the 2026 budget. It's hard to cut your way out of budgetary crisis but demanding times require demanding decisions.

One benefit of the DOGE exercise is that there is plenty of room to reduce our Federal, State and Local budgets. Our government is way beyond in scope and size than anything our founding fathers could imagine. We look to our government to fix our personal problems not to manage the infrastructure to enable us the opportunity to succeed.

My grandparents were probably like most grandparents to members of this forum. Both sets owned a home, had one car, had one job with the spouse working modest jobs once the kids left the house. Both sets of grandparents retired around 65 years old. They had no pensions but actually saved money on social security. I realize expenses are in hyperdrive right now, but we as a society where we "need" everything. There are not "wants," everything is a "need." My grandparents could not afford cable when it came in the 1970s; they lived with the rabbit ear antenna on the TV. My grandparents could not afford cell phones when they came out in the 1990s; they relied on their home phones.

We do not have a revenue problem. We have a spending problem.

Biggd 04-13-2026 10:13 AM

My father in-law used to say, when people talked about the good old days, "the good old days weren't that good'.
I'm 72 and I look back fondly on my childhood, but I don't want to go backwards.
Today is the first day of the rest of your life, make it a good one!

LIforrelaxin 04-13-2026 10:15 AM

Quote:

Originally Posted by John Mercier (Post 406720)
Couple of basics.

Income taxes cannot be "graduated" in NH; our State Constitution does not allow for it.
Also the tax would fall on residents, while non-resident property owners would see tax relief.

John, sometimes your posts leave a little to be desired.... While currently the state constitution may not allow a graduated income Taxes, it can be changed to do so.... that is the entire point of something being put into place.....

Because of NHs make up, property tax, would always need to be in place at some level.....so I don't think there would be relief there....

While I am on this train of thought... I have always proposed that what NH needs is not income tax, but rather sales tax, like property tax it hits everyone the same....

NH has serious funding issues.... the system in place is not and has not been sufficient for quite a while.... Unfortuantely if the politicians only focus on being re-elected it is never going to be change... oh wait the idea behind state lawmakers not make a salary was supposed to help with that.....

At the end of the Day, NH is just as broken as most other states.....

Descant 04-13-2026 10:19 AM

Quote:

Originally Posted by Garcia (Post 406764)
NH has decided to collect money through property tax and maintain no income or general sakes tax - and thus is in the top 5 of the states with the highest property tax. Florida's property tax is in the middle of the states, about average. BUT FL has a statewide sales tax of 6% and allows local surtaxes creating an effective rate of 6.5%-7%.

DeSantis does not have a real proposal yet to eliminate property tax, it's more of an idea. To make up the lost revenue, guess what has to go up? Sales tax.

Curious for your source putting NH in the top 54. Yesterday morning Fox business listed NJ, NY, CT, MA and CA as the top five.

Biggd 04-13-2026 10:25 AM

Quote:

Originally Posted by Descant (Post 406796)
Curious for your source putting NH in the top 54. Yesterday morning Fox business listed NJ, NY, CT, MA and CA as the top five.

NH is always in the top five for property taxes!

Garcia 04-13-2026 10:27 AM

Quote:

Originally Posted by Descant (Post 406796)
Curious for your source putting NH in the top 54. Yesterday morning Fox business listed NJ, NY, CT, MA and CA as the top five.

Here's one, https://www.rocketmortgage.com/learn...taxes-by-state

camp guy 04-13-2026 10:28 AM

NH Real Estate taxes
 
Budgets are made up of dollars and cents, when, in fact, they should be made up of dollars and sense.

Major 04-13-2026 10:42 AM

Quote:

Originally Posted by Biggd (Post 406794)
My father in-law used to say, when people talked about the good old days, "the good old days weren't that good'.
I'm 72 and I look back fondly on my childhood, but I don't want to go backwards.
Today is the first day of the rest of your life, make it a good one!

I don't think I was pining for the good old days or said that my grandparents era was better than ours. My point is that our values have changed. As a society, we don't live within our means. Like John said, we want the McMansion when we can't afford it. We feel that it is somehow deserved, not earned.

tis 04-13-2026 12:23 PM

Quote:

Originally Posted by Major (Post 406800)
I don't think I was pining for the good old days or said that my grandparents era was better than ours. My point is that our values have changed. As a society, we don't live within our means. Like John said, we want the McMansion when we can't afford it. We feel that it is somehow deserved, not earned.

That's the problem. Everybody has a taker mentality. Our parent and grandparents were too proud to take a cent from the government and didn't need all the little extras that government provides today. I also can't imagine that there isn't going to be a credit card explosion in our future.

Garcia 04-13-2026 12:35 PM

Quote:

Originally Posted by tis (Post 406801)
That's the problem. Everybody has a taker mentality. Our parent and grandparents were too proud to take a cent from the government and didn't need all the little extras that government provides today. I also can't imagine that there isn't going to be a credit card explosion in our future.

It's a little more nuanced. The tax rate of the wealthy was significantly higher and there was a stronger sense of civic responsibility to share the costs of the war, or programs to benefit the middle class like the GI bill, and to pay for the interstate highway system. Because of this, or in spite of depending on your viewpoint, there was the biggest growth of the middle class in our country's history. Wage inequality shrank, wages went up, and the middle class grew.

Major 04-13-2026 01:17 PM

Fact
 
The top 10% of wage earners pay more tax now than any time in U.S. history, including when the highest tax rate was 90%. While individual tax rates were much higher in the mid-20th century, a smaller portion of the population fell into those high brackets, and many used deductions to lower their actual tax burdens. We are taxing our high wage earners at an unfair amount. Our federal government would collect far more taxes if it had a flat tax, e.g., 15%, across the board with no deductions. Nearly half of all Americans pay no federal income taxes. This would have the added benefit that everyone is paying their fair share and has skin in the game.

Back to the topic at hand, let's hope and pray that the NH legislature resists the urge of implementing either an income or sales tax. (Although selfishly speaking, I would prefer that they implement an income tax since I pay Mass state income tax anyway.) Expense reduction is the key.

John Mercier 04-13-2026 01:18 PM

Quote:

Originally Posted by Garcia (Post 406802)
It's a little more nuanced. The tax rate of the wealthy was significantly higher and there was a stronger sense of civic responsibility to share the costs of the war, or programs to benefit the middle class like the GI bill, and to pay for the interstate highway system. Because of this, or in spite of depending on your viewpoint, there was the biggest growth of the middle class in our country's history. Wage inequality shrank, wages went up, and the middle class grew.

The higher tax rates meant that reinvesting profits - delaying gratification - was more prevalent.

John Mercier 04-13-2026 01:21 PM

Quote:

Originally Posted by Major (Post 406803)
The top 10% of wage earners pay more tax now than any time in U.S. history, including when the highest tax rate was 90%. While individual tax rates were much higher in the mid-20th century, a smaller portion of the population fell into those high brackets, and many used deductions to lower their actual tax burdens. We are taxing our high wage earners at an unfair amount. Our federal government would collect far more taxes if it had a flat tax, e.g., 15%, across the board with no deductions. Nearly half of all Americans pay no federal income taxes. This would have the added benefit that everyone is paying their fair share and has skin in the game.

Back to the topic at hand, let's hope and pray that the NH legislature resists the urge of implementing either an income or sales tax. (Although selfishly speaking, I would prefer that they implement an income tax since I pay Mass state income tax anyway.) Expense reduction is the key.

15% will not cover the spending and result in the deficit/debt increasing even faster than it currently is.
We need about 23% with an additional percentage to get the debt down.

TomC 04-13-2026 01:35 PM

Quote:

Originally Posted by Major (Post 406803)
The top 10% of wage earners pay more tax now than any time in U.S. history, including when the highest tax rate was 90%. While individual tax rates were much higher in the mid-20th century, a smaller portion of the population fell into those high brackets, and many used deductions to lower their actual tax burdens. We are taxing our high wage earners at an unfair amount. Our federal government would collect far more taxes if it had a flat tax, e.g., 15%, across the board with no deductions. Nearly half of all Americans pay no federal income taxes. This would have the added benefit that everyone is paying their fair share and has skin in the game.

Back to the topic at hand, let's hope and pray that the NH legislature resists the urge of implementing either an income or sales tax. (Although selfishly speaking, I would prefer that they implement an income tax since I pay Mass state income tax anyway.) Expense reduction is the key.

You are correct. The old trope that the rich don't pay their fair share or that "back then" the wealthy contributed more just won't die... From an article just out from the Cato Institute: "At the federal level, the top 10 percent of income earners pay more than 60 percent of all taxes and 72 percent of income taxes, shares that have been increasing over time. " You can read it for yourself here: https://www.cato.org/blog/tax-day-fi...-pays-how-much

As was said earlier in the thread, we have a spending problem not a revenue problem...

John Mercier 04-13-2026 01:35 PM

Quote:

Originally Posted by LIforrelaxin (Post 406795)
John, sometimes your posts leave a little to be desired.... While currently the state constitution may not allow a graduated income Taxes, it can be changed to do so.... that is the entire point of something being put into place.....

Because of NHs make up, property tax, would always need to be in place at some level.....so I don't think there would be relief there....

While I am on this train of thought... I have always proposed that what NH needs is not income tax, but rather sales tax, like property tax it hits everyone the same....

NH has serious funding issues.... the system in place is not and has not been sufficient for quite a while.... Unfortuantely if the politicians only focus on being re-elected it is never going to be change... oh wait the idea behind state lawmakers not make a salary was supposed to help with that.....

At the end of the Day, NH is just as broken as most other states.....

Good Luck.
If you see someone approaching with a rope; move away from the tree.

Nothing really broken... just voters upset with their lot in life and looking for scapegoats.

John Mercier 04-13-2026 01:47 PM

Quote:

Originally Posted by tis (Post 406801)
That's the problem. Everybody has a taker mentality. Our parent and grandparents were too proud to take a cent from the government and didn't need all the little extras that government provides today. I also can't imagine that there isn't going to be a credit card explosion in our future.

Actually, they voted this all in.
It isn't a generational thing, it is human nature.

Do you know why the modern farmhouse-style is black/black windows?
Farmers used to have to repaint sashes every few years as part of their maintenance. Some could afford much large pieces of glass developed through new processes. Those that could not would paint them black/black to make the muntins (grilles that held the glass) disappear. The eye would perceive them less with the dark color.

This type of keeping up has been around forever. We just don't have the correct incentives to make society more productive and less consumptive for long term trends.

Government restrictions can make that happen.

Garcia 04-13-2026 02:01 PM

Quote:

Originally Posted by TomC (Post 406807)
You are correct. The old trope that the rich don't pay their fair share or that "back then" the wealthy contributed more just won't die... From an article just out from the Cato Institute: "At the federal level, the top 10 percent of income earners pay more than 60 percent of all taxes and 72 percent of income taxes, shares that have been increasing over time. " You can read it for yourself here: https://www.cato.org/blog/tax-day-fi...-pays-how-much

As was said earlier in the thread, we have a spending problem not a revenue problem...

True, the top 10% pay more. They also control a much larger share of the wealth than ever before. And, the top 1% control upwards of 30% of the wealth so of course they should pay more. Related, each year upwards of 500 billion dollars of taxes owed are not collected - an it's not the people at the bottom who are not paying.

The end result is that maybe NH's reliance on property tax is the way to go. Choose to live in a low value home, pay less. Can't afford to keep paying your taxes. move somewhere else. Let the voters decide the budget and tax accordingly

Biggd 04-13-2026 02:57 PM

Death and taxes, two things you can never outrun but will run out on you.

NHskier 04-13-2026 05:19 PM

This recent report from the NH Fiscal Policy Institute provides a detailed look at the makeup of New Hampshire’s tax structure as related to local property taxes. It also provides comparisons with other states.

PROPERTY TAXES IN NEW HAMPSHIRE: HOW THEY WORK
AND HOW THEY COMPARE

John Mercier 04-14-2026 10:28 AM

The shift from State revenue to local revenue was planned in some areas.

Subsidies, especially long term ones, can be serious financial issues.

In one case, the State was picking up more of the cost of pension benefits.
That basically subsidizes the cost of a municipal employee and leads to the municipality being a bit lax in negotiations.

It is important to understand that the Part First Article 28-a change was to keep the State from mandating costs that it would not bear the burden of taxation for.

Same can be stated for the municipalities.

retired 04-14-2026 11:13 AM

Are short term rentals through AirBnb and Verbo paying NH Rooms and Meals tax like they are required to by law? I know in the early days of short term rentals, they were not. Hotels collect the tax. They are at a disadvantage if homeowners are not collecting it. The state is missing a chunk of revenue if it doesn't pursue this.

WinnisquamZ 04-14-2026 11:39 AM

Quote:

Originally Posted by retired (Post 406830)
Are short term rentals through AirBnb and Verbo paying NH Rooms and Meals tax like they are required to by law? I know in the early days of short term rentals, they were not. Hotels collect the tax. They are at a disadvantage if homeowners are not collecting it. The state is missing a chunk of revenue if it doesn't pursue this.

Only if they were issued a permit from the city or town. Most fly under the radar, so the answer is no

Descant 04-14-2026 11:39 AM

Quote:

Originally Posted by retired (Post 406830)
Are short term rentals through AirBnb and Verbo paying NH Rooms and Meals tax like they are required to by law? I know in the early days of short term rentals, they were not. Hotels collect the tax. They are at a disadvantage if homeowners are not collecting it. The state is missing a chunk of revenue if it doesn't pursue this.

I believe your ads are supposed to include your license info. If you advertise an STR without the info, you may get a call from the DRA. If you just advertise on some sort of closed system, e.g. company bulletin board, you may escape the R & M tax. You may have some "exposure" if you slip up on your related BPT filing. Mostly your tenants expect to pay the tax so it is n o big deal to collect and pay.

WinnisquamZ 04-14-2026 11:54 AM

I can name three rentals on my road in Laconia. Each not permitted. Permits are public records. Each have rented for years and little to no problems so we pay no attention.


Sent from my iPhone using Winnipesaukee Forum mobile app

John Mercier 04-14-2026 06:18 PM

So no M&R or BET/BPT taxes collected, and no inspections to determine if they meet at least the basic rental standards that a LTR would need.

WinnisquamZ 04-14-2026 10:01 PM

NH Real Estate Taxes
 
Quote:

Originally Posted by John Mercier (Post 406849)
So no M&R or BET/BPT taxes collected, and no inspections to determine if they meet at least the basic rental standards that a LTR would need.

Correct. None of the above. One unit did try for a permit but failed miserably.
The city knows they are rented without permits but allows them to continue.
As I noted earlier, little to no issues over the past decade and owners are involved in the neighborhood.

Sent from my iPhone using Winnipesaukee Forum mobile app

TiltonBB 04-15-2026 07:33 AM

Quote:

Originally Posted by retired (Post 406830)
Are short term rentals through AirBnb and Verbo paying NH Rooms and Meals tax like they are required to by law? I know in the early days of short term rentals, they were not. Hotels collect the tax. They are at a disadvantage if homeowners are not collecting it. The state is missing a chunk of revenue if it doesn't pursue this.

Quote:

Originally Posted by WinnisquamZ (Post 406831)
Only if they were issued a permit from the city or town. Most fly under the radar, so the answer is no

I can't speak about Laconia but I have a STR in Gilford and I use AIRBNB for rentals. They collect and pay the taxes and issue a 1099 to me each year. So, both NH Rooms and Meals tax gets paid and income tax gets paid on any profit.

retired 04-18-2026 02:18 PM

Does VRBO do the same thing?

Cal-to-NH 04-19-2026 07:39 AM

2 Attachment(s)
STATE REVENUE ONLY. NOT LOCAL TAXES. BUT WORTHY OF NOTE


NH total collected taxes 10 yr graph

Attachment 19049

NH year-to-year change in collected taxes, 10 yr graph (total each year is the blue bar)

Attachment 19050
year-to-year change in collected taxes 10 year graph (year-to-year change is the tiny bar at the end of each year)

Source https://fred.stlouisfed.org/


Still recovering from eliminating income and dividends tax.
Ayotte et al are cheering for (and working hard to) increase gambling revenue to make-upthe difference.

John Mercier 04-19-2026 10:03 AM

https://www.nhmunicipal.org/sites/de...palities_0.pdf

Page 7 and 8 is what they are talking about for M&R.

Prior to 2021, it was being defrayed to State costs.
It is now set as a percentage, but if not everyone that is supposed to pay is paying; the others in the same business model are at a disadvantage.

Lots of other little items to think about for policy; but those are more a local issue that the State may only need to considered based on allowing local control in some sense.

rodgcsa 04-19-2026 03:07 PM

interesting numbers
 
I found this interesting.
Overall Rank State Total Tax Burden (%) Property Tax Burden (%) Individual Income Tax Burden (%) Total Sales & Excise Tax Burden (%)
1 Hawaii 13.30% 2.62% (25) 3.20% (7) 7.48% (1)
2 New York 12.39% 4.22% (4) 4.65% (2) 3.53% (23)
3 Vermont 11.10% 4.89% (1) 2.75% (14) 3.46% (26)
4 New Mexico 10.75% 2.22% (36) 2.25% (28) 6.28% (3)
5 Maine 10.01% 3.95% (5) 2.71% (15) 3.35% (29)
6 Illinois 9.92% 3.75% (6) 2.40% (24) 3.77% (18)
7 Maryland 9.70% 2.54% (29) 4.28% (3) 2.88% (40)
8 New Jersey 9.52% 4.38% (2) 2.42% (22) 2.72% (43)
9 Oregon 9.46% 2.96% (17) 4.76% (1) 1.74% (46)
10 Rhode Island 9.29% 3.67% (7) 2.16% (30) 3.47% (25)
11 California 9.24% 2.89% (20) 3.03% (11) 3.32% (30)
12 Iowa 9.21% 3.32% (12) 2.36% (27) 3.53% (22)
13 Kansas 9.20% 2.92% (19) 2.40% (23) 3.87% (17)
14 Indiana 9.12% 2.15% (38) 3.05% (10) 3.91% (14)
15 Minnesota 9.08% 2.47% (32) 3.34% (6) 3.27% (33)
16 Ohio 9.05% 2.62% (24) 2.54% (19) 3.88% (16)
17 Connecticut 9.00% 3.66% (8) 2.69% (16) 2.65% (44)
18 West Virginia 8.89% 2.10% (39) 2.87% (13) 3.92% (13)
19 Utah 8.87% 2.21% (37) 2.92% (12) 3.73% (20)
20 Mississippi 8.84% 2.59% (26) 1.65% (38) 4.60% (8)
21 Massachusetts 8.82% 3.33% (11) 3.45% (5) 2.04% (45)
22 Louisiana 8.82% 1.84% (45) 1.73% (37) 5.25% (5)
23 Kentucky 8.76% 1.95% (41) 3.15% (8) 3.66% (21)
24 Pennsylvania 8.47% 2.59% (27) 2.65% (17) 3.23% (34)
25 Washington 8.47% 2.47% (31) 0.13% (43) 5.87% (4)
26 Arkansas 8.44% 1.59% (49) 1.81% (35) 5.04% (6)
27 Nevada 8.37% 2.09% (40) 0.00% (45) 6.28% (2)
28 Virginia 8.26% 2.92% (18) 2.58% (18) 2.75% (42)
29 Nebraska 8.16% 3.22% (14) 2.11% (31) 2.82% (41)
30 Georgia 8.15% 2.68% (23) 2.51% (20) 2.97% (38)
31 Wisconsin 8.12% 2.84% (21) 2.39% (25) 2.89% (39)
32 Michigan 7.98% 2.99% (16) 2.00% (32) 2.99% (37)
33 Alabama 7.93% 1.40% (50) 2.17% (29) 4.36% (9)
34 Missouri 7.84% 2.35% (33) 2.38% (26) 3.11% (35)
35 North Carolina 7.81% 1.92% (44) 2.49% (21) 3.41% (27)
36 Texas 7.69% 3.43% (9) 0.00% (45) 4.27% (11)
37 Colorado 7.56% 2.77% (22) 1.43% (39) 3.36% (28)
38 South Carolina 7.49% 2.56% (28) 1.86% (33) 3.07% (36)
39 Montana 7.29% 3.04% (15) 3.05% (9) 1.20% (48)
40 Arizona 7.24% 1.95% (42) 1.01% (40) 4.28% (10)
41 Oklahoma 7.05% 1.78% (46) 1.78% (36) 3.50% (24)
42 Idaho 7.04% 1.92% (43) 1.84% (34) 3.29% (31)
43 North Dakota 7.02% 2.23% (35) 0.88% (41) 3.91% (15)
44 Wyoming 6.70% 3.42% (10) 0.00% (45) 3.28% (32)
45 South Dakota 6.38% 2.32% (34) 0.00% (45) 4.06% (12)
46 Delaware 6.28% 1.67% (47) 3.62% (4) 0.98% (49)
47 Florida 6.27% 2.52% (30) 0.00% (45) 3.74% (19)
48 Tennessee 6.21% 1.60% (48) 0.00% (44) 4.61% (7)
49 New Hampshire 5.38% 4.33% (3) 0.13% (42) 0.91% (50)
50 Alaska 4.92% 3.32% (13) 0.00% (45) 1.60% (47)
Total tax burden

Hawaii has the highest total tax burden, with residents paying out over 13% of their income to state and local governments. That includes 3.2% on income taxes, 2.6% on property taxes, and 7.5% in sales and excise taxes.

Alaska has the lowest total tax burden, as its residents pay no income tax. They also pay out only 3.3% of their income in property taxes and 1.6% in sales and excise taxes, for a total of 4.9%.

Income tax burden

Oregon has the costliest state and local income taxes in the nation, at 4.8% of its residents’ income. On the flip side, Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, and Wyoming do not charge any income tax. This makes them attractive states to move to, WalletHub says.

Property tax burden

Vermont charges the most in property taxes, at 4.9% of residents’ income. All states have some sort of property tax, but Alabama’s is by far the lowest, at just 1.4%.

Sales and excise tax burden

Residents of Hawaii pay out around 7.5% of their income in sales and excise taxes every year. New Hampshire residents have the lowest burden—the state does not charge a general sales tax, and other excise taxes only work out to less than 1% of the average resident’s income each year, WalletHub says.

Photo credit: erhui1979/iStock

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The Real BigGuy 04-20-2026 12:39 PM

Quote:

Originally Posted by TomC (Post 406791)
But how is that different from other states? Second homeowners in other states pay for the school system, etc. As for the island resident argument... every mainlander chips in for the fireboat which they will never use...

It is different in that the state of NH wants to double the RE TAX on second/vacation homes to reduce taxes on state residents. As far as the fireboat goes - while the fire department response may actually save a mainland property, the fireboat, not so much. But islanders probably are more than happy to pay for it but would consider an abatement for the school portion of taxes fair.

Descant 04-20-2026 01:19 PM

Quote:

Originally Posted by The Real BigGuy (Post 406922)
It is different in that the state of NH wants to double the RE TAX on second/vacation homes to reduce taxes on state residents. As far as the fireboat goes - while the fire department response may actually save a mainland property, the fireboat, not so much. But islanders probably are more than happy to pay for it but would consider an abatement for the school portion of taxes fair.

It's a pretty big stretch to say "The state wants" when a kid from Peterborough files one bill because he saw the idea on Yellowstone and modified it. It varies from town to town, but island properties make up a substantial portion of a town's total tax base. The fireboats also respond to shorefront emergencies, medical/rescue as well as fire, and to similar needs on boats in the middle of the lake. These aren't your grandfather's cellar savers anymore. Businesses can't vote or send kids to school but they pay taxes. Around the lakes region, shorefront/second homes are the "business". BTW, many camps, hunting, skiing, snowmobile or waterfront in NH are owned by residents of NH, not folks from out of state.

John Mercier 04-20-2026 07:32 PM

Well, Gianforte and DeSantis are not kids.
And they are using the same approach.

The only real question is will it be absorbed at the State level or local.

TomC 04-21-2026 03:12 AM

Quote:

Originally Posted by The Real BigGuy (Post 406922)
It is different in that the state of NH wants to double the RE TAX on second/vacation homes to reduce taxes on state residents. As far as the fireboat goes - while the fire department response may actually save a mainland property, the fireboat, not so much. But islanders probably are more than happy to pay for it but would consider an abatement for the school portion of taxes fair.

My point was that many believe there are expenditures that they do not benefit from. People with no children pay for schools, the fire boat example, people who have never set foot in the library, etc. At some point society agreed that the best approach for town taxes is a common pot of money collected from all tax payers which is then spent on a general budget - not the Chinese menu approach where various services are selected or declined...

retired 04-28-2026 10:24 AM

What we have now is working. If it ain't broke don't fix it. The key is to limit government spending. That will keep taxes low. Keep the bureaucracy from getting bloated.

John Mercier 04-28-2026 12:14 PM

Technically, it is broke.
Just no one is sure of the fix.


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