New Hampshire RSA 72:39-a: A Statutory Floor With 234 Municipalities Each Setting Their Own Elderly Exemption Income, Asset, and Dollar Limits
Updated April 2026
New Hampshire's elderly property tax exemption is structured similarly to Massachusetts's Clause 41C, a state statute (RSA 72:39-a) sets the minimum eligibility floor, and each of New Hampshire's 234 municipalities (cities and towns) sets its own actual income limits, asset limits, and exemption dollar amount within statutory bounds. The state floor for income is $13,400 single / $20,400 married, but most NH towns adopt local limits substantially above the floor, typically $35,000-$50,000+ single and $50,000-$65,000+ married. The state floor for assets (excluding the residence and up to 2 acres or the local zoning minimum lot size) is $35,000; locally-adopted asset limits run higher. The exemption is filed via Form PA-29 with the local municipality, not with the state DRA.
RSA 72:39-a: The State Floor and Local-Option Layers
State-floor eligibility:
- Age 65 or older as of April 1 of the tax year.
- NH residency for at least 3 consecutive years immediately preceding April 1.
- Owner of the property (or a beneficial interest meeting statutory criteria); the property is the primary residence.
- Income at or below local-option limit (state floor: $13,400 single / $20,400 married).
- Net assets at or below local-option limit (state floor: $35,000, excluding residence and up to 2 acres or local zoning minimum).
The exemption amount is also locally set, with the state requiring at minimum $5,000 of assessed-value reduction for ages 65-74, $10,000 for ages 75-79, and $20,000 for ages 80+. Most towns adopt amounts well above the floors, Concord, Nashua, and other larger NH cities run brackets in the $50,000-$200,000 range depending on age tier. Check your specific municipality.
The age-tiered amount structure means a senior's exemption grows as they age. A homeowner who qualifies at 65 with the local 65-74 amount will see the exemption step up at 75 and again at 80. This automatic step-up doesn't require reapplication in most municipalities, but the assessor needs current proof of age in the file.
RSA 72:38-a: Elderly and Disabled Tax Deferral
Distinct from the exemption, RSA 72:38-a authorizes a tax deferral for seniors or disabled persons who qualify. Eligibility:
- Age 65+ or eligible under the disability provisions.
- Owned the homestead for at least 5 consecutive years.
- Living in the home as primary residence.
- The municipality must determine that the tax bill creates “undue hardship or possible loss of the property.” This is a discretionary municipal determination, not a fixed income test.
Deferred amounts accrue interest at a rate set by the municipality (typically aligned with prevailing tax rates). The deferred tax plus interest creates a lien on the property, repaid when the home is sold, transferred, or the homeowner's estate settles. Deferral is much less commonly used than the exemption, only seniors who cannot pay through other means typically pursue it, given the lien implications.
Why Municipal Adoption Drives Outcomes: Two Towns, Two Worlds
Two illustrative cases showing how municipal variation operates:
- A 70-year-old senior in Hampton, NH with $48,000 income: Hampton's adopted income limit is around $48,000 single (varies by year), so this senior likely qualifies. The exemption amount in Hampton's 65-74 tier is approximately $73,000 of assessed value, meaningful relief on a $400,000 home.
- A 70-year-old senior in a small NH town that has not raised income limits above the state floor: at $48,000 income, the senior is well above the state floor of $13,400 single. No exemption available unless the town has adopted higher local-option limits.
Before assuming you do or don't qualify, contact your specific municipality's Assessing or Tax Collector's office. The variance between towns is dramatic; the same income and age profile produces very different outcomes by zip code.
Frequently Asked Questions
My New Hampshire town hasn't adopted higher income limits. Am I stuck with the $13,400 state floor?
Possibly, yes. Towns that haven't voted to raise the income limits operate under the state minimum, which is $13,400 single / $20,400 married, punishingly low by 2026 standards and well below most retirees' income. The remedy is political: NH's town meeting structure means residents can warrant articles to raise the local limits. If your town hasn't adopted higher limits, contact your selectboard or town meeting moderator about putting it on the next warrant. Some smaller NH towns have only raised limits within the past 5 years; others have not raised them in decades.
I'm 75 and just turned eligible for the higher tier in NH. Do I need to refile?
In most municipalities, no. Once you've filed Form PA-29 and been approved for the elderly exemption, the age-tiered step-up at 75 and 80 happens automatically based on the date of birth in your file. Some municipalities request periodic verification of continued residency and ownership, but the age step-up itself doesn't require a new application. If you're unsure whether your town processes the step-up automatically, contact your local Assessing office and confirm, losing the higher tier because of an administrative gap would be worth a 5-minute phone call to prevent.
Can I claim both the NH elderly exemption AND the deferral?
Yes, if you qualify for both, the exemption reduces the assessed value used to compute your tax (so your bill is smaller), and the deferral lets you postpone payment of what remains. Most seniors don't need both: if the exemption brings the bill into manageable range, deferral isn't worth taking on the lien. Deferral is structured for the specific case where even the post-exemption bill creates “undue hardship or possible loss of the property,” which is the statutory test the municipality applies. If you're considering deferral, talk to your tax collector about how the municipality interprets the hardship standard before committing.
