State and local taxes (“SALT”) are any additional taxes imposed by an individual state and/or locality aside from federal taxes that may apply. Unlike many neighboring states, New Hampshire does not impose traditional income and/or sales taxes. Therefore, it relies heavily on SALT for revenue. On the local level, SALT generally appears in the form of property and/or real estate taxes. On the state level, SALT may be applied on goods and services ranging from sales and use to business income.
New Hampshire localities notoriously rely on property taxes for revenue. They use this revenue to fund local interests such as public maintenance and services. New Hampshire property tax rates vary among individual municipalities. However, they are generally within the range of $14- $33/ $1000 of value of real estate. Read more about property taxes, as well as property tax reductions (also known as tax abatements).
In addition to real estate taxes collected by individual localities, the State of New Hampshire relies on other forms of SALT at the state level that includes (but is not limited to) business enterprise, business profits, interest & dividends, meals and rooms (rentals), and real estate transfer taxes.
While many residents of New Hampshire expect SALT to be higher than neighboring states, can individuals and entities pay too much SALT? The short answer is: yes. Local and state taxing authorities impose taxes on a wide-scale basis. Therefore, they can sometimes overcharge and/or over-assess SALT on certain residents.
Individuals and businesses who believe their SALT obligations may be in excess of what they should be due to incorrect information on behalf of the taxing authority, disproportionate assessment, or any other good cause reason can request a refund and/or credit for the amount of overpayment. For more information on recovering or correcting SALT, contact us.