State and local taxes, or SALT, are taxes charged in addition to any federal taxes. Many states and localities charge these taxes. Most states choose to use income and sales tax, as well as property and real estate taxes for their state and local taxes. However, in the state of New Hampshire, property and real estate taxes cover the local taxes. As for the state taxes in NH, those are covered by charging taxes on goods and services from sales and even business income. There is no general income tax and sales tax is only charged on certain items.
Local Taxes in New Hampshire
Many of the localities in New Hampshire use the property tax money they collect for funding of public maintenance and other services. There is no set tax range in this state and municipalities can set their own property tax rate. To give you an idea of what people are paying in property taxes throughout the state, the average tax range is between $14 and $33 for every $1,000 value of real estate.
State Taxes in New Hampshire
The state of New Hampshire needs to collect tax money from residents in some way to cover the costs of running the state. Most of the state taxes are collected from business profits, interest and dividends, business enterprise, meals, room rentals, and real estate transfer taxes.
However, there is a longer list of what is taxed in this state, and it also includes:
- Communication services tax
- Electricity consumption tax
- Gravel tax
- Medicaid enhancement tax
- Motor vehicle rentals
- Nursing facility quality assessment
- State education property tax
- Timber tax
- Tobacco tax
- Utility property tax
One of the biggest savings the residents of New Hampshire see though is tax savings for all their internet purchases. New Hampshire is one of the few states that does not collect sales tax for any internet purchases. Not paying income taxes also saves New Hampshire residents quite a bit of money throughout the year.
There are times when residents are overcharged for their state and local taxes. Since the taxing authorities impose taxes on a wide-scale basis, it is common for them to over-access and overcharge on occasion. Most of the time, the higher taxes are due to incorrect information and disproportionate assessments.
Anyone who believes they are paying too much in taxes can request a refund or credit of the overpayment if they can prove they were overcharged and provide the correct information to the taxing authority.
If you believe you have been paying too much in SALT obligations, or you have questions about what you are obligated to pay, contact me today. I can help you sort things out and offer a little guidance along the way.