New Hampshire levies taxes on real estate, including land and buildings, though it does not impose a broad-based sales or income tax. This system relies heavily on local assessments to fund municipal services like schools, roads, and public safety. For example, a homeowner in Manchester will pay taxes based on their property’s assessed value, contributing to the city’s budget.
This revenue structure significantly impacts the state’s financial landscape, influencing everything from local budgets to real estate markets. Historically, the absence of sales and income taxes coupled with reliance on property levies has shaped New Hampshire’s unique political and economic character. This approach provides local governments with considerable autonomy in managing their finances, but also creates potential disparities in resources between wealthier and less affluent communities.
