New Hampshire

New Hampshire is an attorney-customary closing state, most closings happen at an attorney's office with attorney supervision of title and signing. Title companies handle title insurance, but the attorney is the central professional.

The split Real Estate Transfer Tax

New Hampshire's transfer tax structure is distinctive: a 1.5% Real Estate Transfer Tax on sale price, split equally between buyer and seller, each pays 0.75% at closing. On a $400,000 sale, each side pays $3,000 in RETT, for $6,000 combined.

This is a structurally unusual arrangement, most states put transfer tax fully on one side or the other, not split equally. The split structure means New Hampshire buyers face a meaningful closing-cost line that they don't face in (for example) neighboring Vermont (buyer-paid graduated PTT) or Massachusetts (seller-paid deed excise).

No income tax, no sales tax, but high property tax

New Hampshire's "Live Free or Die" tax structure is no general state income tax (interest and dividends taxed at 3% with phase-out, expected to be eliminated; wages and salaries are not taxed) and no state sales tax. The state funds itself primarily through property tax, which produces some of the highest effective property-tax rates in the country, roughly 1.8%–2.3% of market value statewide on average.

For sellers above the federal § 121 exclusion, the no-state-income-tax structure is a meaningful advantage, only federal LTCG plus optional NIIT applies. For homeowners, the high property tax is the offsetting cost.

What buyers should know

New Hampshire's standard purchase contract gives buyers standard contingency periods. Inspection contingencies typically run 10–14 days; financing contingencies run 30–45 days.

Title insurance in New Hampshire is not state-promulgated, so premiums vary modestly by insurer. The lender's title policy is required (buyer customarily pays); the owner's policy is customarily also paid by the buyer.

Property tax is the dominant recurring cost in New Hampshire. The 1.8–2.3% effective rate on a $400,000 home produces $7,200–$9,200 annually in tax. Buyers should factor this carefully, a "comfortable" mortgage payment in NH pencils at substantially smaller home prices than in lower-tax states.

The state's elderly exemption (varies by town) provides reduced taxation for owners 65+, and the state has a low-and-moderate-income property tax relief program.

The buyer-broker agreement (post-2024 NAR settlement) is required before showings.

What sellers should know

New Hampshire seller closing costs are moderate. On a $400,000 sale: 5–6% commission ($20,000–$24,000), 0.75% RETT seller portion ($3,000), attorney fees $750–$1,500, $1,000–$1,500 title insurance share, remaining items. Total seller closing costs typically run 7–9% of sale price.

No state income tax means sellers face only federal capital gains tax and optional NIIT on appreciated property above the federal § 121 exclusion. Combined effective rates of 18.8%–23.8% are typical.

The New Hampshire Seller's Property Disclosure is the standard form. Sellers complete the form covering known defects.

Hot markets

Manchester (Hillsborough County) and Nashua (also Hillsborough) drive the bulk of southern New Hampshire transaction volume, they function in part as part of the broader Boston metro area, with cross-state commuter dynamics. Portsmouth (Rockingham County) has its own seacoast market. Concord (the state capital) and the Lakes Region (Belknap County, around Lake Winnipesaukee) round out the secondary markets. Rural northern New Hampshire has very different dynamics with seasonal/recreational property and slower appreciation.

How closing typically works

Closing happens at the attorney's office. The attorney prepares the deed and supervises signing; the buyer signs loan documents; funds wire from the lender to the attorney's trust account; the deed records at the county Registry of Deeds.

Total time from contract signing to recorded deed runs 45–60 days for financed transactions in New Hampshire.

For specific deals (cross-state Boston-commuter transactions, lake-frontage purchases, or any property with title-history complications) a New Hampshire real estate attorney with local expertise is the right professional.