Elderly Exemption Program

Read through Elderly Exemption (RSA 72:39-b).

Criteria

  1. Applicant must be 65 years old before April 1 of the tax year for which the application is being made.
  2. Income cannot exceed $36,800 for a single person and $50,000 for a married couple per year. Income includes social security, retirement/pension payments, wages, dividend and interest income, support from others, and/or rental income. Not included are life insurance paid on the death of an insured; expenses and costs incurred in the course of conducting a business enterprise; and proceeds from the sale of assets. You will be asked to provide a copy of your Federal and State Income Tax returns. The single income limit was set by the City Council at a meeting held on February 7, 2001, and the married couple income limit was set by the City Council at a meeting held on October 16, 2019.
  3. Net Assets (excluding the value of your actual residence) may not exceed $100,000. This includes checking accounts, savings, IRAs, CDs, stocks, bonds, expensive jewelry, cars, and any other real estate, including rental units attached to your primary residence. You can only exclude up to two acres, or the minimum zoning lot size for a residence in your zoning district. The remainder of the land is included in the $100,000 limit at the fair market value and not the assessed value. “Net assets” means the value of all assets, tangible and intangible, minus the value of any good faith encumbrances. The asset limit was set by the City Council at a meeting held on November 16, 2005.
  4. You must have resided in the state for at least three (3) years and owned your home individually or jointly on April 1st in the tax year for which you are applying. If the real estate is owned by your spouse, you must have been married for at least 5 years.

Applications

Applications for Exemption must be filed by April 15, and not afterward, for the current tax year. The application is permanent as long as you own your home or until your financial circumstances change. The Board of Assessors may review your application during subsequent tax years to determine the continuation of eligibility. You must notify the Assessing Staff if you no longer qualify because of changes in income or assets.

Exemption Amounts

Age as of April 1 of the current tax year.

  • 65 - 74 years of age: $55,000
  • 75 - 79 years of age: $95,000
  • 80+ years of age: $200,000

The amount of the exemption is subtracted from the total assessment before the tax rate is applied. The exemption amount was set by the City Council on January 20, 2021.

Reduce Your Taxes

An exemption reduces the taxable value of your real estate. For example, if the tax rate was $24.19, the following would apply.

 ItemWithout ExemptionExemption (Age 65-74)
Exemption (Age 75-79)Exemption (Age 80+)
Land Value$65,000$65,000
$65,000
$65,000
Building Value$130,000$130,000$130,000
$130,000
Total Assessment$195,000$195,000$195,000
$195,000
Less ExemptionN/A($55,000)($95,000)($200,000)
Net Assessment$195,000$140,000$100,000$0
Tax Rate$24.19$24.19
$24.19
$24.19
Taxes$4,717$3,387$2,419$0
Savings$0$1330$2,298$4,717