Buying Real Estate in NH vs. MA: Taxes, Costs & Laws

Which State Has Better Real Estate Taxes—New Hampshire or Massachusetts?

When it comes to tax benefits, New Hampshire stands out for having no state income tax or sales tax, making it a desirable location for homeowners and investors alike. However, the catch lies in its high property tax rate, averaging 2.05%—among the highest in the U.S., though this rate varies widely by town.

On the other hand, Massachusetts imposes a 5% income tax and 6.25% sales tax, but offers some relief through a more moderate property tax rate of 1.17%. The Bay State also provides valuable homeowner tax exemptions for seniors, veterans, and the blind.

Where Is Real Estate More Affordable—NH or MA?

In terms of housing affordability, New Hampshire generally offers lower home prices, especially in southern cities like Nashua, where median home values hover around $350,000 as of early 2023.

Meanwhile, Massachusetts real estate prices are significantly higher, with median prices ranging from $400,000 to $600,000+ in cities like Lowell and Andover. The Greater Boston area sees particularly steep prices due to high demand and limited inventory.

Which State Offers Better Investment Potential?

Both states offer strong real estate investment potential, but for different reasons:

• New Hampshire benefits from its growing population, especially near the Massachusetts border, making it ideal for commuters and long-term value growth.

• Massachusetts has higher appreciation rates, fueled by demand in urban hubs and strong rental markets around colleges and universities.

If you're looking for long-term equity or rental income, both states offer solid opportunities—but MA may offer faster growth, while NH offers lower entry points.

How Do Disclosure Laws Differ in NH vs. MA?

Real estate disclosure laws are another key distinction:

• New Hampshire uses a (technically optional) Property Disclosure Form that's widely adopted and covers home systems, defects, and history. Some disclosures are mandatory by law even without the form.

• Massachusetts, by contrast, does not require a formal disclosure form. Sellers must only disclose known issues that pose health or safety risks. Buyers in MA must do more due diligence and ask detailed questions.

This difference makes transparency more common in NH, while MA puts the onus on the buyer.

What Is an Attorney State—and Why Does It Matter in MA?

Massachusetts is an attorney state, meaning a real estate attorney must be involved in the closing process. This ensures legal compliance and protection but also shifts some transaction responsibilities from realtors to attorneys.

New Hampshire, on the other hand, is a non-attorney state, so REALTORS® handle more of the transaction from start to finish, requiring a broad understanding of contracts, disclosures, and process management.

Understanding this difference helps you prepare for the roles of legal and real estate professionals during your homebuying journey.

Looking for Your Dream Home in New England?

If you're considering buying in Maine, New Hampshire, or Massachusetts, I'm here to help you navigate the process from start to finish. Whether it’s a coastal escape, city condo, or suburban home, I’ll match you with the property that fits your vision and budget.

Let’s Find Your Perfect Home Together

Reach out today for personalized real estate guidance in NH, MA, or ME.

Hunter Letendre, REALTOR®Licensed in NH, ME & MAPresident's Circle | Top 7% of BHHS Network603-268-9559 | 603-772-0600Berkshire Hathaway HomeServices Verani Realty

Other helpful articles:

• Moving to ME, NH, or MA? Pros, Cons & Costs

• Massachusetts vs. New Hampshire Cost of Living Summary