Understanding New Hampshire’s Transfer Tax: A Quick Guide
Selling a home in New Hampshire? One cost you’ll need to factor in is the real estate transfer tax. This tax is levied when ownership of a property changes hands, and it can impact your net proceeds from the sale.
Our short guide will help you understand how transfer taxes work in New Hampshire, detailing what sellers can expect to pay. We’ll cover who is responsible for paying these taxes, the different types that may apply, and any potential exemptions.
Disclaimer: This post is for educational purposes only and does not constitute legal or financial advice. Links and mentions of New Hampshire area tax services or attorneys should not be considered endorsements.
What are transfer taxes?
Real estate transfer taxes are defined by the Federal Trade Commission as a tax payable to state or local governments when property ownership is transferred from one person to another. In simple terms, when you transfer the title of your home—your legal right to the property—to a new owner, a tax is imposed on this transaction.
The amount of transfer tax you owe depends on the location of your property, as it is determined by state, county, or city regulations. Similar to other forms of taxation, these transfer taxes are implemented to generate revenue for the government.
Who pays for transfer taxes?
The responsibility for paying transfer taxes can vary, but in New Hampshire, it is the responsibility of both the buyer and the seller. Typically, each party covers half of the total transfer tax amount, but this can change based on the terms of the transaction agreement.
