By Christian Wade | The Center Square
New Hampshire is known as the “Live Free or Die” state that prides itself on a low financial burden for residents with no personal income or sales taxes.
But when it comes to local property – or real estate – taxes, not so much.
That’s according to a new report from the lending giant Rocket Mortgage, which ranked New Hampshire as the state with the third-highest property tax rates in the nation.
The report, which is based on 2020 Census data, found that Granite Staters pay an average $4,738 a year in local property taxes, which are collected by cities and towns and vary widely. The average property tax rate for New Hampshire was 2.18%, the report’s authors noted.
Meanwhile, the latest data on housing sales in the state suggests that property tax bills are likely to increase along with the skyrocketing value of single-family homes.
New Hampshire housing costs are continuing to rise with the median price of a single-family home jumping to $460,000 in May, according to a separate report from the New Hampshire Association of Realtors. The report found the median price for a home in the state increased in May by 13.6% from the same period last year.
New Hampshire needs to build at least 20,000 more housing units to meet current demand, according to a 2020 report by the state’s Housing Finance Authority.
Republican Gov. Chris Sununu recently signed into law a plan to invest $100 million in federal pandemic relief money to create a new housing fund that would provide state grants to municipal governments, developers and property owners to build new homes.
Rocket Mortgage’s analysis found that New Jersey had the highest property tax burden in the nation with homeowners paying an average of 2.49% or $5,419 a year.
New Jersey was followed by Illinois, where property owners pay an average of 2.27%, or $4,952 a year.
States with the lowest property tax burdens include Hawaii, Alabama, Colorado and Louisiana as well as the District of Columbia, according to the report.
Hawaii has the lowest property tax at $606 a year, the report’s authors noted.