The New Hampshire Real Estate Transfer Tax, often called the transfer tax, is a state tax charged when real estate is sold or transferred.
For a typical home purchase, the tax is based on the sales price of the property.
How Much Is the NH Real Estate Transfer Tax?
The total tax is effectively $15 for every $1,000 of the sales price, with the tax normally divided equally between the buyer and seller.
That means:
- Buyer pays $7.50 per $1,000
- Seller pays $7.50 per $1,000
- Combined tax is $15 per $1,000
The State of New Hampshire officially states the rate as $0.75 per $100 for the buyer and $0.75 per $100 for the seller.
An Easy Way to Calculate the Buyer’s Cost
Take the purchase price, divide it by 1,000, and multiply by $7.50.
For example, on a $500,000 home:
500 × $7.50 = $3,750
The buyer’s NH Real Estate Transfer Tax would be approximately $3,750.
The seller would also pay approximately $3,750, making the combined transfer tax $7,500.
Who Collects the Transfer Tax?
The tax is generally paid through the closing and collected when the deed is recorded at the Registry of Deeds in the county where the property is located.
Payment of the tax has traditionally been evidenced by transfer-tax stamps associated with the recorded deed.
Is Transfer Tax the Same as Property Tax?
No.
The Real Estate Transfer Tax is a one-time tax associated with the transfer of the property.
Property taxes are the recurring taxes assessed on the property by the municipality and other local taxing authorities.
For a buyer, the NH Real Estate Transfer Tax is one of the costs of purchasing the property and would generally apply whether the buyer is obtaining a mortgage or paying cash.
Certain transfers may qualify for exceptions under New Hampshire law, but a typical arms-length purchase of a home is subject to the tax.