New Hampshire Property Tax Relief Grant: How Low and Moderate Income Homeowners Can Get Up to 1700 Back

Property taxes in New Hampshire can feel like a second mortgage. The state leans hard on local property taxes to fund education, which is great for schools but brutal for anyone on a fixed or modest income.

If you own your home, live in it, and your income is on the lower side, the Low and Moderate Income Homeowners Property Tax Relief program is one of the few ways you can actually get some of that money back in cash. Not a credit on next years bill. An actual refund check.

This program lives in the dry world of Section 198:56 and related statutes of New Hampshire law, but the effect is very real: refunds up to about 1,700 dollars for qualifying homeowners who paid the state education property tax on their primary residence.

If you are a New Hampshire homeowner and your income is under roughly 37,000 dollars (single) or 47,000 dollars (married/joint), you should be treating this like an annual grant you apply for every spring.

Let’s walk through how it works, who qualifies, the traps that make people miss out, and how to set yourself up to claim it every single year.

At a Glance: Low and Moderate Income Homeowners Property Tax Relief

What This Opportunity Actually Offers

Think of this as a small but mighty grant for New Hampshire homeowners who are getting squeezed by education taxes.

The program gives you a cash refund check based on how much state education property tax you paid compared with what the state thinks is a “reasonable” amount for your income.

You still have to pay the full property tax bill when it’s due. The relief comes later in the form of a refund. For many people, this arrives just in time to help cover heating oil, winter repairs, or holiday expenses.

Here’s what makes it genuinely valuable:

• It’s money back in your pocket. This isn’t a promise of lower future taxes. It’s an actual check, typically arriving by mid‑October.

• It targets the part of your bill you can’t escape. The state education portion is required by law and hits everyone, but this program recognizes that a flat charge falls harder on low and moderate income households.

• The formula quietly favors people in high‑tax towns. If you live in a community where property values and tax rates have climbed faster than wages or retirement income, you’re exactly who this program is trying to help.

• You can stack it with local relief. You can still take elderly exemptions, veteran credits, and hardship abatements from your town. This state refund sits on top of those, not instead of them.

For someone with a modest income and a house assessed under 220,000 dollars, it’s not unusual to see refunds in the several hundred‑dollar range. For those near the top of the income and valuation rules, you may get a smaller check, but it can still be the difference between putting something on a credit card or paying cash.

The catch: you have to apply every year. The state will not send this automatically, even if you qualified last year. Treat it like filing your taxes: annual, non‑optional, and worth the paperwork.

Who Should Apply for New Hampshire Property Tax Relief

The program is aimed squarely at New Hampshire homeowners who live in their homes and have modest incomes. If that’s you, at least check whether you qualify.

You’re likely a good fit if the following describe your situation:

• You owned and lived in your home on April 1 of the tax year. The April 1 date is the state’s snapshot. If you bought the house in June, you’ll need to wait until you hit that April 1 mark in a later year.

• The home is your primary residence, not a camp, seasonal property, or a rental. Snowbirds can qualify as long as New Hampshire is your legal domicile and this is the home tied to your driver license, voting, and so on.

• Your household income is up to 37,000 dollars if you’re single, or up to 47,000 dollars if you’re married filing jointly. “Household income” is broader than just wages: it can include Social Security, pensions, retirement withdrawals, business income, interest, and dividends. The main exceptions are things like Supplemental Security Income (SSI) and certain non‑taxable veterans benefits.

• Your home’s assessed value is 220,000 dollars or less for full relief. If your assessment has climbed above that, don’t stop reading; homes between about 220,000 and 260,000 dollars may still qualify for partial relief on a sliding scale.

• You actually paid the state education property tax for that year. Whether you wrote the check yourself or your mortgage escrow did it, there needs to be proof that the tax was paid.

Real‑world examples of likely candidates:

• A single homeowner earning 28,000 dollars per year with a small house assessed at 180,000 dollars.
• A married couple bringing in 44,000 dollars combined, living in a modest condo assessed around 210,000 dollars.
• A retired widow living mostly on Social Security and a small pension, whose house jumped from 210,000 to 240,000 dollars after the market ran away from her.

If your home value is just above 220,000 dollars, or your income is flirting with the limit, do not self‑reject. Many people assume they’re “above the line” when they’re actually eligible, especially if they’re counting income that doesn’t need to be included or looking at an inflated assessment that can be appealed.

How the Refund Is Calculated (Without the Math Headache)

Behind the scenes, the state uses a formula, but you don’t need to be an actuary to understand the basics.

1. They look at the actual state education tax you paid.
   This amount is usually broken out on your property tax bill as “State Ed” or “State Education Tax.” That’s the only piece this program cares about.

2. They figure out how much they expect you to pay based on income.
   This is where income thresholds come in. At very low incomes, the state expects you to pay a smaller share of your income toward that state education tax (say around 2 percent). As your income rises toward the top limit, that expected share increases (toward roughly 5 percent).

3. They compare the two numbers.
   If you paid more in state education tax than the formula says you “should” reasonably pay, the difference becomes your refund amount, up to a cap (about 1,700 dollars).

4. They adjust for property value if your assessment is above 220,000 dollars.
   Once your home value starts climbing above the full‑relief limit, the refund gets scaled back. By the time you reach roughly 260,000 dollars, it may phase out entirely.

A simple example:
If your household income is 30,000 dollars and the state expects, for example, 3 percent of that (900 dollars) as a reasonable education tax burden, but your actual state education tax is 1,400 dollars, your potential refund is about 500 dollars.

You don’t have to do this math yourself—the DRA handles it. But understanding the logic helps you see why it’s worth applying even if you’re not sure how big your refund will be.

Insider Tips for a Winning Application

This isn’t a competitive grant—if you qualify, you’re in. But people still lose out because of sloppy applications, missing documents, or misunderstandings about the rules. Here’s how to avoid that.

1. Treat the June 30 deadline as non‑negotiable

There are no extensions, no “I was on vacation,” no “my dog ate Form DP‑8.” If your application isn’t in by June 30, that year’s refund is gone.

Put reminders in your phone for:

• February – “Start pulling tax and income documents.”
• May 1 – “Download new DP‑8 form.”
• June 15 – “Mail or deliver application.”

Give yourself at least two weeks of buffer. If you’re relying on mail, consider certified or trackable mailing, especially in late June.

2. Get obsessive about documentation

Most delays and denials come down to missing or inconsistent paperwork. At minimum, expect to gather:

• Your final property tax bill showing the state education portion.
• Proof of payment, such as receipts, canceled checks, or a mortgage escrow statement.
• Your federal tax return (or the program’s income worksheet if you didn’t file).
• W‑2s, 1099s, Social Security and pension statements for everyone in the household.

Set up a physical folder and a digital one. Every time a tax document arrives, it goes in both. Next year you’ll thank yourself.

3. Make sure your home value is realistic

Because full relief is capped around 220,000 dollars in assessed value, an inflated assessment can quietly push you out of full eligibility.

If your assessment jumps and you know the home needs major repairs, or you see similar homes selling for less, consider:

• Filing an abatement or assessment appeal with your town (usually by March 1 after the bill).
• Bringing basic evidence: recent comparable sales, a contractor’s estimate for serious issues, or photos of structural problems.

A modest reduction in assessed value can make a real difference in your refund.

4. Do not overstate your income

This sounds odd, but many people accidentally count income that doesn’t belong in the calculation—especially those on disability or with veterans benefits.

Read the income definitions in the DP‑8 instructions carefully. Some non‑taxable benefits are excluded. If you’re unsure, call DRA or ask a VITA site or ServiceLink counselor for help. Overreporting income is basically volunteering to reduce your own refund.

5. Coordinate with your mortgage company

If you pay taxes through escrow, make sure:

• The correct property is being taxed (you’d be surprised).
• The escrow statement clearly shows the state education tax portion.
• Payments were not late, because unpaid tax doesn’t count for relief.

If you recently refinanced or changed mortgage servicers, double‑check that your escrow handled the property tax correctly for the year you’re applying for.

6. Keep a “DP‑8 kit” from year to year

You’re going to do this every year, so make it easy on yourself:

• Keep a copy of last year’s DP‑8.
• Keep a list of exactly which documents you used.
• Note any questions DRA asked you the previous year.

Next time, you’re not starting from scratch—you’re updating.

Application Timeline: Working Backward from June 30

Here’s a realistic way to pace yourself so this doesn’t become a last‑minute scramble.

January – March
You’re already pulling documents for your income tax return. This is the perfect time to:

• Save digital PDFs of your 1040, W‑2s, 1099s, and benefit statements.
• Create a “Property Tax Relief” folder—paper and digital.
• Note your assessed value from the town’s assessment notice.

If your assessment looks high, this is when you research an appeal.

April
Your final property tax bill and proof of payment should be in hand, or your escrow statement should be updated.

• Highlight or circle the state education tax portion on the bill.
• Confirm payment dates and amounts.

Early May
Form DP‑8 for the new season usually appears on the DRA website by May.

• Download the current year form.
• Read the instructions once, all the way through, even if you’ve done it before—rules and thresholds can change.

Mid‑May to early June
Complete the application slowly but thoroughly.

• Fill in property and owner information.
• Enter income from your return or complete the income worksheet if you don’t file taxes.
• Double‑check Social Security numbers, spellings, and property identifiers.

By June 15
Aim to have your application mailed or hand‑delivered.

• Make copies of everything for your records.
• If mailing, consider certified mail to have proof it was received.

Summer – early Fall
DRA processes claims over the summer.

• Keep an eye on your mail and bank address changes.
• If something looks off, respond promptly to any DRA letters.

By October 15
Refund checks are typically mailed by this date. If you haven’t seen anything by late October, it’s time to call.

Required Materials and How to Prepare Them

An accurate, clean packet will save you weeks of back‑and‑forth.

Plan to include:

• Completed Form DP‑8
  Fill it out legibly. If you can type into the PDF, do it—handwriting issues slow things down. Make sure all owners and, in the case of married couples, both spouses sign where required.

• Property Tax Bill and Payment Proof
  Use the final bill for the tax year. If the state education portion isn’t obvious, ask the town clerk or tax collector to clarify it. Attach clear copies, not blurry phone photos.

• Income Documentation
  Your federal tax return for the year in question is usually the easiest baseline. If you don’t file, the DP‑8 form provides an income worksheet—be honest and complete.

  Back up your numbers with W‑2s, 1099s, Social Security statements, pension letters, and similar records.

• Residency Evidence (if requested)
  A New Hampshire driver license, voter registration, or utility bill at that address helps prove this is your primary residence, especially if you own another property elsewhere.

• Assessment Notice (if relevant)
  If your eligibility is tight because of a high assessment, having the official notice handy—and any documentation of an appeal—can help support your case.

Keep everything together. If DRA sends you a letter asking for more information, respond quickly and clearly, referencing your property and tax year.

What Makes an Application Stand Out (in a Good Way)

Again, this isn’t a competitive contest, but some applications glide through the system while others sit in limbo. The difference often comes down to clarity and consistency.

Stronger applications tend to:

• Tell a consistent story.
  The income you report on DP‑8 lines up with your federal return. The property owner name matches the tax bill. The residency address is the same across documents. When nothing conflicts, there’s nothing to question.

• Highlight the correct tax amount.
  Applicants who clearly indicate “this is the state education tax” make the reviewer’s life easier and their own processing faster.

• Include complete household income information.
  Everyone living in the home who contributes income is accounted for. DRA doesn’t have to guess or ask repeatedly.

• Address unusual circumstances upfront.
  If you had a one‑time income spike (like a retirement account cash‑out for a medical bill), a brief note and documentation can help DRA understand that this year is not typical.

Behind the scenes, DRA is essentially checking three big questions:

1. Is this the right type of property?
   Owner‑occupied, primary residence, New Hampshire.

2. Does the income level fit the rules?
   Under the caps, with the right things included or excluded.

3. Does the property value sit in the eligible range?
   Under or near the threshold, with appropriate adjustments if higher.

If your paperwork lets them answer those three questions easily, you’re in very good shape.

Common Mistakes That Cost People Money

You’d be surprised how often people miss out for avoidable reasons. Avoid these traps:

Missing the June 30 deadline
This is the big one. Once the date passes, there’s no “late window.” Put the deadline where you put birthdays and loan payments.

Using the wrong tax amount
Some applicants accidentally plug in the total property tax (town + county + state) instead of just the state education portion. That will either confuse the calculation or force DRA to send a clarification letter.

Always isolate the state education tax line from your bill.

Leaving out household income
If a spouse or partner living in the house has income, it belongs in the application, even if that person isn’t listed on the deed. Omitting it is an easy way to get flagged, and potentially denied.

Ignoring your assessed value
People look at what their home would sell for, not what the town has it assessed at. The program cares about the assessed number. If it’s too high and inaccurate, appeal it. If it’s just high because the market exploded, understand that it may reduce your refund, but you might still qualify for partial relief.

Sloppy or incomplete forms
Blank fields, missing signatures, or illegible handwriting turn a six‑week process into a three‑month one. Before you send, pretend you’re the reviewer and ask: “Could I process this without a single question?”

Frequently Asked Questions

Do I need to reapply every year?
Yes. This is not a one‑time benefit. Every tax year stands on its own, with its own income and assessment numbers. Put “DP‑8” on your annual spring checklist.

Can I apply if my siblings co‑own the house but don’t live there?
Generally yes, if you live in the home as your primary residence and pay the education tax. The application will usually focus on your share and your household income. Attach a note and documentation if the ownership situation is unusual.

Can I use this for a manufactured home in a park?
You can, as long as the home is taxed as real property and there’s a clear education tax amount that applies to your unit. That may come either from the town or from the park operator; attach whatever documentation you have.

What if I don’t file a federal tax return?
You can still apply. The DP‑8 form includes an income worksheet that lets you list all your income sources directly. Be thorough: include wages, Social Security, retirement income, and so on.

Is the refund taxable income?
For federal taxes, it’s treated like a state tax refund. Many low and moderate income households use the standard deduction and don’t itemize their state and local tax payments, in which case the refund often doesn’t affect federal taxes. If you do itemize, check with a tax preparer or VITA site to see how to report it.

Can I apply online?
As of now, applications are still paper‑based. You can usually fill the DP‑8 form on your computer, print it, and mail or hand‑deliver it. Keep an eye on the DRA website for any future online filing options—they’ve been slowly modernizing other forms.

What if I sold my home during the year?
If you owned and lived in the home on April 1 of the tax year and paid the state education tax for that year, you may still qualify. Include documentation showing your ownership period and the taxes you paid before the sale.

What happens if I think DRA miscalculated my income or refund?
You can respond in writing, include any supporting documents, and if necessary request further review or appeal through the Board of Tax and Land Appeals. It’s bureaucratic, but not impossible—especially if you keep copies and stay organized.

How to Apply for New Hampshire Property Tax Relief

Here’s the straightforward path from “I think I qualify” to “refund check in hand.”

1. Confirm that you meet the basics.
   You owned and lived in your New Hampshire home on April 1 of the tax year, paid the state education property tax, your income is within the limits, and your assessed value isn’t wildly above the thresholds.

2. Download or pick up Form DP‑8.
   In May, go to the DRA website, or visit your town hall or tax collector. Make sure you’re using the current year version of the form.

3. Gather your documents.
   Pull last year’s federal return, W‑2s, 1099s, benefit statements, property tax bill, and proof of payment. If your situation is unusual (co‑ownership, partial‑year sale, disability income), include a short note explaining it.

4. Complete the form carefully.
   Fill in every applicable section. Double‑check Social Security numbers, income totals, and the state education tax figure. If you’re married, both spouses should sign.

5. Submit by June 30.
   Mail to the New Hampshire DRA at the address listed on the form, or deliver it in person. If mailing close to the deadline, consider a post office receipt or certified mail.

6. Watch your mail by October.
   Refund checks are typically mailed by October 15. If nothing has arrived by late October, call the DRA and ask about your claim, referencing the year and your property.

Get Started

If you’re a New Hampshire homeowner with a modest income, this program is not some obscure legal footnote—it’s an annual opportunity to claw back a chunk of what you paid in state education tax.

Do yourself a favor:

• Mark the deadline.
• Build a simple “DP‑8 kit” of documents.
• Apply every year, even if you think your refund might be small.

Ready to move? Review the official statute and program details here:

Official program and statute page:
https://www.gencourt.state.nh.us/rsa/html/xv/198/198-56.htm

From there, cross‑check with the New Hampshire Department of Revenue Administration site for the latest Form DP‑8, instructions, and mailing details. A few hours of paperwork now can translate into hundreds of dollars back in your pocket every fall.