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Updated 2025 Tax Year

Hillsborough County
Property Tax Guide

Everything you need to know about property taxes in Hillsborough County, NH. Rates, due dates, exemptions, and how it affects your monthly payment.

8 Official Sources
8 min read
Quick Facts
Tax Rate
1.5% to 2.5% of assessed value, varies by municipality within county
Exemptions
7+ Available
Section 1

How Property Tax Works

Hillsborough County, New Hampshire operates a property tax system that serves as the primary funding mechanism for local services including schools, municipal operations, and county government functions. Property taxes in Hillsborough County are administered at the municipal level, with each city and town within the county setting its own tax rate based on local budget requirements and state-mandated education funding obligations.

The effective property tax rates in Hillsborough County vary significantly by municipality due to different local spending levels and special taxing districts. For the 2025 tax year, rates typically range from approximately 1.5% to 2.5% of assessed value, with the total rate comprising municipal taxes, local school taxes, state education taxes, and county taxes. Property owners should note that their specific tax rate depends on their exact location within the county, as special districts for services like water, sewer, or lighting may add additional assessments to the base municipal rate.

Section 2

What Makes Up Your Tax Bill

ComponentRate (per $1,000)Description
State Education Tax$10.30State-mandated education funding (FY 2025)
Local Education Tax$10.90Local school district funding (varies by district)
Municipal TaxVariesCity/town operations, services, debt service
County TaxVariesHillsborough County government operations
Total Effective Rate$79.50Average combined rate (FY 2025-2026)

Note: The total rate of $79.50 per $1,000 of assessed value represents an average across Hillsborough County municipalities. Actual rates vary by specific location due to different municipal budgets and special taxing districts. Some areas may have additional assessments for water districts, lighting districts, or other special services that can add $1-5 per $1,000 to the total rate.

Section 3

When Are Property Taxes Due?

For the 2025/2026 tax year in Hillsborough County, property taxes are due in two installments:

Pro tip: If you pay through mortgage escrow, your lender splits these payments across your monthly mortgage. If you pay directly, set calendar reminders to avoid late penalties.
Section 4

Supplemental Tax Bills

Supplemental property taxes in Hillsborough County are triggered when there are changes in property ownership, new construction, or improvements that increase a property's assessed value during the tax year. The most common trigger is the completion of new construction or major renovations that add significant value to a property after the annual assessment date.

When a supplemental tax is issued, it represents the difference between the taxes already assessed on the original value and the taxes due on the new, higher assessed value. The supplemental tax is prorated based on the number of months remaining in the fiscal year from when the improvement was completed. For example, if a $100,000 addition is completed in January and the tax rate is $25 per $1,000, the supplemental tax would be approximately $2,500 × (remaining months ÷ 12). Property owners typically receive supplemental tax bills within 30-90 days of the triggering event and must pay within 30 days of the bill date to avoid penalties.

Example Calculation

Example 1: $300,000 Home

  • Assessed Value: $300,000
  • Veterans' Tax Credit Applied: -$500 (if qualified and applied)
  • Net Taxable Value: $299,500
  • Annual Tax ($79.50/$1,000): $2,381
  • Monthly Escrow: $198

Example 2: $600,000 Home

  • Assessed Value: $600,000
  • Elderly Exemption Applied: -$50,000 assessed value (if qualified and applied)
  • Net Taxable Value: $550,000
  • Annual Tax ($79.50/$1,000): $4,373
  • Monthly Escrow: $364

Example 3: $1,000,000 Home

  • Assessed Value: $1,000,000
  • No credits applied: $1,000,000
  • Net Taxable Value: $1,000,000
  • Annual Tax ($79.50/$1,000): $7,950
  • Monthly Escrow: $663

Note: Tax credits shown require annual application and qualification. Veterans' credits require proof of service, and elderly exemptions require income and age verification. Credits are not automatically applied.

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Section 5

Escrow & Property Taxes

Most mortgage lenders in Hillsborough County require property tax escrow accounts for borrowers with less than 20% down payment. Your lender collects 1/12 of your estimated annual property tax bill each month along with your mortgage payment. The lender then pays your property taxes directly to the municipal tax collector when bills are due, typically in July and December for most municipalities.

Property owners should verify that their lender has current tax information, especially after reassessments or rate changes. You can confirm tax payments were made by checking with your local tax collector's office. If you pay taxes directly (without escrow), most Hillsborough County municipalities offer online payment options, automatic payment plans, and accept payments by mail, phone, or in person. Visit https://www.manchesternh.gov/Departments/Tax-Collector for Manchester payment options, or contact your specific municipality's tax collector for other areas.

How HonestCasa Helps
  • Understand whether your escrow is set correctly
  • See how rising taxes will change your monthly payment
  • Plan ahead instead of being surprised by "shortage" letters
Section 6

Frequently Asked Questions

Q: When are property taxes due in Hillsborough County? A: Due dates vary by municipality, but most follow a semi-annual schedule with bills due in July and December for FY 2025-2026. Contact your local tax collector for specific dates.

Q: What tax credits are available and do I need to apply? A: Common credits include Veterans' Tax Credit ($500), Elderly Exemption (reduces assessed value), Disabled Veterans' Credit, and Solar Energy Systems Credit. ALL credits require annual application by April 15th and are not automatically applied.

Q: How does the Homestead Exemption work? A: New Hampshire does not have a traditional homestead exemption, but elderly residents may qualify for an exemption that reduces assessed value by up to $50,000 based on income limits. This requires annual application and income verification.

Q: When are properties reassessed? A: Most municipalities conduct reassessments every 5-10 years or when the assessment ratio falls outside state requirements. Individual properties may be reassessed when improvements are made.

Q: How do I appeal my assessment? A: File an abatement application with your local Board of Selectmen/Assessors by March 1st following the tax year. Visit https://www.manchesternh.gov/Departments/Assessing for forms and procedures.

Q: What are the penalties for late payment? A: Most municipalities charge 12-18% annual interest on delinquent taxes, with potential tax lien procedures starting after one year of delinquency.

Q: Can I pay property taxes online? A: Yes, most municipalities offer online payment options. Check your tax bill or municipal website for available payment methods.

Q: Why did my tax rate change if I didn't improve my property? A: Tax rates change annually based on municipal budgets, school budgets, and total assessed values in your district. Even without property improvements, rates can increase or decrease based on local spending decisions.

Q: What are special district taxes? A: Some areas have additional taxes for water districts, lighting districts, or other special services. These appear as separate line items on your tax bill and vary by location within the county.

Q: How do I verify my property information is correct? A: Review your assessment notice annually and contact your local assessor's office if you find errors in property description, square footage, or other details that affect valuation.

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