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Can someone tell me the rules on property taxes for those OVER 65. Do you get a break on your taxes, and do you have to live in NH, for a certain number of years before you do.I am looking to compare cost between NH and Maine. Thanks.
Every town is different. I live in Londonderry, and here they do exemptions on different levels depending on age, income & assets:
Age 65-74: $123,625 property value reduction
Age 75-79: $154,500 property value reduction
Age 80+: $206,000 property value reduction
Current Assets Limit: $137,000
Current Income Limit: $40,800 (Single); $50,300 (Married)
Every town is different. I live in Londonderry, and here they do exemptions on different levels depending on age, income & assets:
Age 65-74: $123,625 property value reduction
Age 75-79: $154,500 property value reduction
Age 80+: $206,000 property value reduction
Current Assets Limit: $137,000
Current Income Limit: $40,800 (Single); $50,300 (Married)
Valerie, does the "current assets limit" INCLUDE the house?! If so, it doesn't seem like many people would get any reduction, given that most properties in Londonderry would be above $137,000?
My town has a senior exemption but the income limits are very low (can't remember exactly, but I think they were in the 20k-range). My SS will be more than that in retirement so I don't think I'll EVER get an exemption.
I love my house and my lot and my neighborhood, but property taxes will be a HUGE expense in retirement (and my town's taxes aren't considered to be outrageous). Those taxes are the ONLY reason I would ever consider leaving NH (probably for Maine).
Hi Karen_in_nh, it's been awhile. Hope all is well.
Your primary residence is NOT considered an asset in regard to the exemption. Average property value in town is the low 300s - so I feel like the exemption is substantial. EVERY senior should be applying! The income limit is pretty good as well - keeping mind that this is meant to help residents to stay in their home more than to help well-off seniors relocating and looking for the best tax situation...
Quote:
Originally Posted by karen_in_nh_2012
Valerie, does the "current assets limit" INCLUDE the house?! If so, it doesn't seem like many people would get any reduction, given that most properties in Londonderry would be above $137,000?
My town has a senior exemption but the income limits are very low (can't remember exactly, but I think they were in the 20k-range). My SS will be more than that in retirement so I don't think I'll EVER get an exemption.
I love my house and my lot and my neighborhood, but property taxes will be a HUGE expense in retirement (and my town's taxes aren't considered to be outrageous). Those taxes are the ONLY reason I would ever consider leaving NH (probably for Maine).
You should be aware that Londonderry (mentioned by Valerie C) is unusually generous, as are some other towns I have looked at, such as Hopkinton and Peterborough.
The state mandates a means-tested exemption for seniors, but the income/assets limits and exemption amounts are very low, and many towns do not exceed them, or do so only by a small amount. If you google you can find the relevant RSA (or, look for the info on a town website and it will probably cite the RSA.). I can’t remember it off the top of my head. The RSA will list the minimum requirements.
You also need to have lived in the state for a certain period of time. I want to say 5 years, but I might be wrong.
EDIT: It’s spelled out in N.H. RSA 72-39a and b. And it’s 3 years of residency, not 5. The minimum exemption is a mere $5000, which is basically nothing considering houses in NH are assessed (in theory) at 100% of market value. My previous town only gave the $5000 exemption. That’s $5000 off your assessed value, not a $5000 credit towards your taxes.
Also I just noticed that the value of your primary residence and the lot on which it sits is excluded UP TO the greater of 2 acres or the minimum lot size in town. So I guess the value beyond 2 acres (or whatever) DOES count as an asset. Generally though residual acreage beyond 2 acres for a typical residential property is valued at much less than the first 2 acres.
Last edited by cowbell76; 10-17-2020 at 04:55 PM..
You should be aware that Londonderry (mentioned by Valerie C) is unusually generous, as are some other towns I have looked at, such as Hopkinton and Peterborough.
The state mandates a means-tested exemption for seniors, but the income/assets limits and exemption amounts are very low, and many towns do not exceed them, or do so only by a small amount. If you google you can find the relevant RSA (or, look for the info on a town website and it will probably cite the RSA.). I can’t remember it off the top of my head. The RSA will list the minimum requirements.
You also need to have lived in the state for a certain period of time. I want to say 5 years, but I might be wrong.
EDIT: It’s spelled out in N.H. RSA 72-39a and b. And it’s 3 years of residency, not 5. The minimum exemption is a mere $5000, which is basically nothing considering houses in NH are assessed (in theory) at 100% of market value. My previous town only gave the $5000 exemption. That’s $5000 off your assessed value, not a $5000 credit towards your taxes.
Also I just noticed that the value of your primary residence and the lot on which it sits is excluded UP TO the greater of 2 acres or the minimum lot size in town. So I guess the value beyond 2 acres (or whatever) DOES count as an asset. Generally though residual acreage beyond 2 acres for a typical residential property is valued at much less than the first 2 acres.
Hi Karen_in_nh, it's been awhile. Hope all is well.
Your primary residence is NOT considered an asset in regard to the exemption. Average property value in town is the low 300s - so I feel like the exemption is substantial. EVERY senior should be applying! The income limit is pretty good as well - keeping mind that this is meant to help residents to stay in their home more than to help well-off seniors relocating and looking for the best tax situation...
I totally get that ^^^ (the bolded) ... but I will have a whole lot more than $137,000 in assets due to diligently contributing to my 403(b) account for almost 20 years. So the senior exemptions seem to be meant for people who have NOT had things like 401(k)'s etc. during their working years -- i.e. those who are living mostly (if not entirely) on social security in their senior years.
And I really do understand that (my mom was in that situation after DECADES of working low-level jobs, and I would never begrudge anyone in a situation similar to hers any kind of exemption). I am certainly not going to be destitute in retirement (even though it's being forced on me about 6 years ahead of schedule ), but I am not going to be rich (by any means) either, so some sort of relief from property taxes would have been welcome -- but it's not going to happen. (I think I could probably meet the INCOME tests in retirement, as I live very simply, but not the asset tests -- not even close on those.) So my point was more that any person who's had a professional-type job (with things like 401(k) accounts) will VASTLY exceed the asset limit for I would bet 100% of NH cities & towns.
In other words, to the OP: don't count on ANY type of senior exemption, as you are not likely to get one unless you are pretty much living on social security and TINY withdrawals from VERY small retirement accounts.
(The following is directed to everyone, not you in particular.). It’s a difficult issue, as is the whole issue of property taxes in general in NH. There are certainly some good reasons, at least at a general level, to offer some property tax relief to seniors. But as you know, any money not coming in from seniors just gets spread out to the rest of the town’s residents. And in such a “graying” state (with some towns “graying” even more than others) there would be a substantial loss of funds if there were a more across-the-board (or at least more generous) property tax exemption for seniors.
There are plenty of people still working who are lower-income and have a lot of difficulty paying their property taxes. And not all of them have kids in the school or ever did or ever will. (I mention that because often the arguments related to property taxes, especially for seniors, come down to arguments about everyone paying for the schools when not everyone has kids in the schools.)
There are plenty of threads about property taxes so I don’t mean to turn this into another one, but I just don’t know what the answer is. The property tax scheme is not sustainable but I am not a fan of a broad-based income tax.
I was just looking at the elderly exemption worksheet for my town, and you need to list not only stocks, etc., but valuable furniture, jewelry, coins, furs, vehicles, RVs, boats, etc.. I’m sure some people will transfer those to their children in order to meet the limit, though unless the town is extremely generous with the exemption, I can’t imagine many people doing so.
State-wide property tax reform needs to be implemented for seniors in NH. We can't do it with the current legislature, but if NH rights itself politically it should be job one.
My town only uses the state-mandated $5000 exemption as well, although when your tax rates are >$30/thousand, that's better than nothing.
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If so, it doesn't seem like many people would get any reduction, given that most properties in Londonderry would be above $137,000?
), but I am not going to be rich (by any means) either, so some sort of relief from property taxes would have been welcome -- but it's not going to happen. (I think I could probably meet the INCOME tests in retirement, as I live very simply, but not the asset tests -- not even close on those.) So my point was more that any person who's had a professional-type job (with things like 401(k) accounts) will VASTLY exceed the asset limit for I would bet 100% of NH cities & towns.
