NH Property Taxes: Why You Shouldn't Compare Towns by Tax Rate Alone

But there's one mistake I frequently see buyers make: comparing towns based solely on their tax rates.

It's not quite that simple.

WMUR recently highlighted a study showing just how dramatically property tax bills can vary between New Hampshire communities. In some cases, similarly valued properties in neighboring towns can result in tax bills that differ by thousands of dollars.

New Hampshire municipalities rely heavily on property taxes to fund schools and local services, but every community has its own combination of property values, budgets and tax base.

Then there's the assessed value of the individual home.

A lower tax rate doesn't automatically mean a lower tax bill if property assessments are higher. Likewise, comparing the current tax bill on two listings doesn't necessarily tell the entire story.

When you're considering a home, look at the actual tax history for that property and research the town's assessment information. It's also worth understanding when the community last completed a revaluation.

And remember that taxes are only one part of the financial picture.

One town might provide municipal water and sewer while another property requires a private well and septic system. HOA fees, commuting costs and other expenses can also affect the true cost of owning a particular home.

Property taxes absolutely deserve a place in your homebuying budget. Just don't let one number make the decision for you.

When comparing communities, look at the whole picture.