Property tax foreclosure in New Hampshire

The property tax process in New Hampshire, step by step

1. Taxes go unpaid and interest starts

   After December 1, or 30 days after a late bill is mailed

   Interest of 8 percent a year is charged on taxes not paid by December 1 after they are assessed, or 30 days after the bill was mailed if it was sent between November 2 and April 1. If you cannot pay because of poverty or another good reason, you can ask your selectmen or assessors in writing for an abatement; the written application is due by March 1 after the notice of tax.

   RSA 76:13; RSA 76:16

2. Notice of the impending tax lien

   At least 30 days before the lien

   The tax collector must send you a notice by certified or registered mail at least 30 days before executing the lien. It gives the amount of tax, interest and costs and the last date and time a payment will be accepted. Paying in full by that date stops the lien.

   RSA 80:59; RSA 80:60

3. The tax lien is executed

   The day after the last payment date in the notice

   The lien goes to the town (or county or state) and has priority over all other liens, including your mortgage. If voters have authorized it, the town can transfer the lien to a private buyer by public auction or sealed bid.

   RSA 80:61; RSA 80:80, II-a

4. Redeem within 2 years

   Any time before the tax deed is given

   You or anyone with a legal interest can redeem by paying the tax collector the lien amount plus 14 percent interest a year from the lien date, plus costs. You can make partial payments; if the deed is issued anyway, partial payments must be refunded.

   RSA 80:69; RSA 80:71

5. Notice of the tax deed and the deed

   At least 30 days before the deed, 2 years after the lien

   The collector must notify you, and each mortgage holder, by certified mail at least 30 days before deeding the property. After 2 years the collector deeds unredeemed property to the lienholder. If the town refuses the deed, your right to redeem continues, with interest still running.

   RSA 80:76; RSA 80:77; RSA 80:77-a

6. Your right to buy the home back from the town

   Within 30 days after the town's notice, which must come at least 90 days before it offers the property for sale

   Before selling a tax-deeded home, the town must mail you notice of your right to repurchase. You must send a certified letter of intent within 30 days and pay all back taxes, interest, costs and penalty within 30 days of that letter. If the home was your principal residence, the extra penalty of 10 percent of assessed value does not apply.

   RSA 80:89; RSA 80:90

7. Your share of the sale money

   The town must act within 60 days after a sale closes

   If the town sells, it may keep only back taxes, interest, costs and the statutory penalty. It must file an interpleader case in superior court naming you and recorded lienholders and pay the rest to the court, or pay you directly if you were the only owner and there were no liens. The statute's 3-year cutoff was struck down by the New Hampshire Supreme Court in Polonsky v. Town of Bedford (2020), a result in line with Tyler v. Hennepin County (2023).

   RSA 80:88; RSA 80:90; Polonsky v. Town of Bedford (N.H. 2020)

Common questions in New Hampshire