If you are looking at real estate on the New Hampshire Seacoast, you’ve likely heard the term “The NH Advantage.”Usually, this refers to our lack of state income tax and sales tax. However, for many out-of-state buyers, that excitement is quickly met with a bit of “sticker shock” when they see the property tax bill.
As we head into 2026, understanding the math behind these taxes is the difference between a good investment and a great one. Here is the breakdown of how the Seacoast tax landscape looks right now and why New Hampshire remains a financial haven for those moving north.
1. The Math: Why NH Property Taxes are Higher (and Why it Matters)
New Hampshire consistently ranks as having some of the highest property tax rates in the country. Because the state doesn’t take a “slice” of your paycheck or your shopping trips, the burden of funding local services—like our top-tier schools and police—falls almost entirely on property owners.
The Comparison: While a town in Massachusetts might have a property tax rate of 1.1%, New Hampshire’s average is closer to 1.8%. However, if you are a high-earner moving from MA, you are instantly saving 5% or more of your total annual income. For many of my clients, the income tax savings alone more than covers their entire property tax bill.
2. 2026 Seacoast Town Breakdown: What to Expect
Property tax rates vary significantly from town to town. Generally, towns with higher property values (like New Castle or Rye) have lower “tax rates” because their tax base is so strong, whereas towns with robust commercial sectors (like Seabrook) can also keep rates lower for residents.
| Town | Estimated 2026 Tax Rate (per $1k value) | The “Vibe” |
| New Castle | ~$5.75 | The lowest in the state; ultra-exclusive island living. |
| Rye | ~$8.55 | Coastal luxury, quiet beaches, and large estates. |
| Portsmouth | ~$11.51 | Historic, walkable city with a high “fun” factor. |
| Hampton | ~$12.61 | The classic beach town; a mix of seasonal fun and year-round residential. |
| Seabrook | ~$12.40 | Affordable coastal access with a massive retail/commercial base. |
| Dover | ~$12.60 | High growth; popular for young professionals and families. |
| Exeter | ~$18.76 | Historic charm with a premium on the top-tier school district. |
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Note: Rates are estimates based on 2025/2026 town reports and are subject to local budget approvals and annual assessments.Note: Rates are subject to local budget approvals and annual assessments.
3. The 2026 “Homestead” Bonus
Starting January 1, 2026, New Hampshire implemented a massive upgrade to the Homestead Exemption. For decades, this protection was capped at $120,000.
In a major win for homeowners, the exemption has jumped to $400,000 for individuals and $550,000 for co-owners/married couples. While this doesn’t directly lower your tax bill, it protects that amount of equity in your primary residence from most creditors—adding a massive layer of security for your primary investment.
4. Understanding the “Inventory” Factor
In 2026, the Seacoast market remains tight. High demand from out-of-state buyers has kept property valuations high. When you see a “low” tax rate in a town like New Castle, remember that it’s an inverse relationship: the higher the home values, the lower the rate needed to fund the town.
Is the NH Advantage Real?
Absolutely. For buyers moving from high-tax states like NY or MA, the Seacoast offers a lifestyle that is financially “cleaner.” You keep more of what you earn, you pay nothing extra at the cash register, and you live in some of the most beautiful coastal communities in New England.
Thinking of making the move in 2026? The “sticker price” of a tax rate never tells the whole story. I specialize in helping buyers run the “Total Cost of Living” numbers to see which Seacoast town actually fits their financial goals.
[Contact me today] for a consultation.