Are you a first time home buyer currently living and working near the border of both Massachusetts and New Hampshire? Deciding which side of the state line you’d like to live on is a hard choice. One major factor in this decision should be the property tax you’ll pay on your first home, which ranges substantially depending on the city and state that you live in.
Property taxes (also called real estate taxes) can vary widely. For example, the effective residential property tax rate in Beverly, Massachusetts, was about 1.36% in 2012, whereas in Nantucket it was just 0.36%. In Jefferson, New Hampshire, the property tax rate was 1.95%, whereas in Plaistow it was 2.47% in the same year. As you can see, there is a major difference in property tax depending on the city you purchase your home in. Also, as illustrated by the above numbers, you can see that New Hampshire property tax is generally much higher than Massachusetts property tax. Massachusetts averages out to around 1% property tax whereas New Hampshire averages out to about 2%, or just about double the percentage paid in Massachusetts.
Massachusetts has a sales tax on most purchases, and this is a large part of the reason why the average property tax there is half of New Hampshire’s. If you are already planning to live on near the border, you can easily pick and choose where to shop. Once you’ve bought your home, however, you cannot pick and choose which property tax rate you’d like to pay as you are now locked in until you sell. While this is far from the only factor in your final decision, keep this in mind while making your choice as it can make a large difference in your monthly mortgage payment, and good luck on your search.
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