Who Pays What? A Breakdown of Residential Closing Costs and Transfer Taxes in New Hampshire

Sitting down at a settlement table in Manchester, Nashua, or Portsmouth without auditing your final Closing Disclosure can result in thousands of dollars in unexpected cash-to-close shortages. While New Hampshire is nationally known for having no general sales tax and no personal earned income tax, the state heavily taxes real estate conveyances at the county registry window. Between New Hampshire's 1.5% combined Real Estate Transfer Tax, municipal property tax prorations tied to an unusual April 1 tax year, and mandatory state heritage surcharges, both buyers and sellers face strict statutory fee allocations that differ markedly from neighboring states.

Understanding exactly who pays which line item-and which closing costs can be shifted across the table during contract negotiations-allows buyers to budget accurately for their wire transfer and helps sellers calculate their true net proceeds before accepting an offer.

Calculating the NH Real Estate Transfer Tax (RETT): Who Pays the $15 per $1,000?

The largest state government charge at any New Hampshire residential closing is the Real Estate Transfer Tax (RETT), governed by N.H. Rev. Stat. Ann. § 78-B:1 and administered by the New Hampshire Department of Revenue Administration, Concord. Unlike states where the seller alone pays the excise stamp, New Hampshire law imposes the tax directly on both the buyer and the seller.

• The Statutory Tax Rate: Under N.H. Rev. Stat. Ann. § 78-B:1, the tax is assessed at a rate of $0.75 per $100 (or fractional part thereof) of the full purchase price or consideration against the purchaser, and $0.75 per $100 (or fractional part thereof) against the seller. Combined, this equals $1.50 per $100, or $15.00 per $1,000 (1.5% total) of the sale price, split 50/50 at $7.50 per $1,000 (0.75%) each.
• Exact Math Example: On a $500,000 residential sale in Bedford or Concord, the total combined RETT owed to the State of New Hampshire is $7,500. By statute (N.H. Rev. Stat. Ann. § 78-B:4), the buyer pays $3,750 at closing and the seller pays $3,750 from their sale proceeds. If the sale price is not an even hundred-for instance, $500,050-the tax is rounded up to the next $100 increment ($500,100) before multiplying by $0.75 per $100.
• The $40 Minimum Transfer Tax Rule: Where the price or consideration is $4,000 or less, N.H. Rev. Stat. Ann. § 78-B:1 establishes a minimum tax of $20.00 for the purchaser and $20.00 for the seller ($40.00 combined), unless the transfer qualifies for a specific statutory exemption.
• Can Buyers and Sellers Negotiate Who Pays RETT? Yes. While N.H. Rev. Stat. Ann. § 78-B:4 makes both parties legally liable to the state for their respective halves, the buyer and seller are free to negotiate a different allocation in their Purchase and Sale Agreement (such as a seller paying the buyer's share as a closing cost concession, or a buyer paying both halves in a competitive bidding war).
• Statutory Exemptions and DRA Audits: Certain transfers are completely exempt from RETT under N.H. Rev. Stat. Ann. § 78-B:2, including non-contractual gifts, transfers between spouses pursuant to a final divorce decree, transfers by devise or death of a joint tenant, and transfers to a revocable trust for the same beneficial owner (N.H. Rev. Stat. Ann. § 78-B:2). However, parties cannot evade the tax on contractual transfers simply by reciting "$10 and other good and valuable consideration" on a deed. In First Berkshire Business Trust v. Commissioner, New Hampshire Department of Revenue Administration, 161 N.H. 176 (NH Supreme Court 2010) and Say Pease IV, LLC v. New Hampshire Department of Revenue Administration, 163 N.H. 415 (NH Supreme Court 2012), the New Hampshire Supreme Court examined the Department's broad audit authority under N.H. Rev. Stat. Ann. § 78-B:9 to assess transfer tax based on full fair market value whenever contractual consideration is understated or tied to debt encumbering the property.

Who Pays What? Complete Breakdown of New Hampshire Closing Costs

To prevent surprises on your settlement statement, the table below outlines the customary division of residential closing costs across New Hampshire's 10 counties.

Prorated Property Taxes and Municipal Assessments

One of the most confusing items on a New Hampshire settlement sheet is the property tax proration. Under N.H. Rev. Stat. Ann. § 76:2, New Hampshire's statewide property tax year runs from April 1 through March 31, rather than following the calendar year (January 1 to December 31). Most New Hampshire cities and towns-including Manchester, Nashua, Concord, Dover, and Derry-bill property taxes semi-annually:

1. First Half Bill (Typically Due July 1): Covers the six-month period from April 1 to September 30 and is issued as an estimated bill equal to 50% of the prior year's taxes.
2. Second Half Bill (Typically Due December 1): Covers the six-month period from October 1 to March 31 after the New Hampshire Department of Revenue Administration, Concord sets the town's final tax rate in the fall, adjusting for the full year's assessment.

At closing, the settlement agent calculates a 365-day daily tax rate starting from April 1. If the seller has already paid the December tax bill (which prepays taxes through March 31) and you close on January 15, the buyer must reimburse the seller at closing for the prepaid days from January 15 through March 31. In addition, buyers in New Hampshire are customarily required to reimburse the seller at closing for the current market value of any heating oil, propane, or kerosene remaining in the property's storage tank based on a written reading from the fuel supplier.

Attorney, Settlement, and Title Insurance Fees

In New Hampshire, the buyer generally selects the title company or real estate law firm that conducts the closing and pays the core title and settlement charges. A 50-year statutory title search and examination typically costs $250 to $400, while the closing or settlement agent fee runs $450 to $850. If the buyer is financing the purchase, the mortgage lender requires a Lender's Title Insurance Policy, and most buyers purchase a simultaneous Owner's Title Insurance Policy regulated under N.H. Rev. Stat. Ann. § 416-A:1 to protect their equity against undiscovered liens, boundary defects, or forged prior deeds. On a $500,000 purchase with an 80% loan, combined Lender's and Owner's title insurance typically costs between $1,500 and $2,100 as a one-time closing premium.

On the other side of the ledger, the seller pays $250 to $450 for an attorney to draft the statutory Warranty Deed (N.H. Rev. Stat. Ann. § 477:27) or Quitclaim Deed (N.H. Rev. Stat. Ann. § 477:28), prepare the seller's transfer tax forms, and coordinate the payoff and statutory discharge of the seller's existing mortgage (N.H. Rev. Stat. Ann. § 479:7).

Recording Fees and Mandatory LCHIP Surcharges

Every New Hampshire county Registry of Deeds charges standardized recording fees established by the state legislature under N.H. Rev. Stat. Ann. § 478:17-g and N.H. Rev. Stat. Ann. § 478:17-j:

• Base Page Recording Fees & Equipment Surcharge: Under N.H. Rev. Stat. Ann. § 478:17-g, recording a deed or mortgage costs $10.00 for the first page and $4.00 for each additional recorded page. Recording a mortgage discharge costs $15.00 for the first page and $4.00 for each additional page. In addition, N.H. Rev. Stat. Ann. § 478:17-j authorizes a $2.00 per document surcharge for the county registry's equipment account-making the effective first-page fee $12.00 for a deed or mortgage and $17.00 for a mortgage discharge at offices like the Rockingham County Registry of Deeds, Brentwood, the Hillsborough County Registry of Deeds, Nashua, the Merrimack County Registry of Deeds, Concord, and the Cheshire County Registry of Deeds, Keene.
• The $25 LCHIP Surcharge: Under N.H. Rev. Stat. Ann. § 478:17-g, a mandatory $25.00 surcharge for the Land and Community Heritage Investment Program (LCHIP) is assessed on every recorded deed, mortgage, mortgage discharge, or subdivision plan. The statute explicitly assigns who pays: the buyer (grantee/mortgagor) pays the $25.00 LCHIP fee on the Deed and the $25.00 LCHIP fee on the Mortgage ($50.00 total), while the seller pays the $25.00 LCHIP fee on each recorded Mortgage Discharge.

Step-by-Step Closing Settlement & Tax Filing Process in New Hampshire

Step 1: Auditing the Closing Disclosure 3 Business Days Before Settlement

For any financed residential purchase, federal TRID regulations (12 C.F.R. § 1026.19) require the lender to deliver Form H-25, FED, Consumer Financial Protection Bureau, Closing Disclosure to the buyer at least 3 business days before closing. Both buyer and seller should verify that the New Hampshire Real Estate Transfer Tax is accurately split in Section E (Taxes and Other Government Fees), that earnest money deposits are properly credited, and that the April 1 property tax proration matches the town tax collector's latest warrant.

Step 2: Executing the Declarations of Consideration (Forms CD-57-P and CD-57-S)

At the closing table, pursuant to N.H. Rev. Stat. Ann. § 78-B:10, both parties must sign official state tax declarations under penalty of perjury whenever a taxable transfer exceeds $4,000 or requires reporting. The buyer executes Form CD-57-P, New Hampshire, Department of Revenue Administration, Real Estate Transfer Tax Declaration of Consideration (Purchaser), and the seller executes Form CD-57-S, New Hampshire, Department of Revenue Administration, Real Estate Transfer Tax Declaration of Consideration (Seller), each certifying the full contractual consideration paid for the property.

Step 3: Remitting Separate Checks or E-Recording Payments at the County Registry

Before the deed is officially recorded under N.H. Rev. Stat. Ann. § 477:3-a, the settlement agent submits the deed, mortgage, and payment to the county Register of Deeds. In New Hampshire, county registries require separate payment allocations for the Real Estate Transfer Tax, the $25 LCHIP surcharges, and the page recording fees. Once the Register of Deeds collects the transfer tax (retaining a 4% county collection commission under N.H. Rev. Stat. Ann. § 78-B:8 before remitting the balance to the state treasury), official documentary tax stamps are affixed or electronically imprinted on the recorded deed.

Step 4: Filing Form PA-34 Within 30 Days of Recording

Recording the deed does not finish the statutory paperwork. Within 30 days after the recording of the deed, both the buyer's Form CD-57-P, New Hampshire, Department of Revenue Administration, Real Estate Transfer Tax Declaration of Consideration (Purchaser) and the seller's Form CD-57-S, New Hampshire, Department of Revenue Administration, Real Estate Transfer Tax Declaration of Consideration (Seller) must be filed with the New Hampshire Department of Revenue Administration, Concord via the Granite Tax Connect portal or by mail (N.H. Rev. Stat. Ann. § 78-B:10). Furthermore, under N.H. Rev. Stat. Ann. § 74:18, the grantee (buyer) must file Form PA-34, New Hampshire, Department of Revenue Administration, Inventory of Property Transfer with both the Department of Revenue Administration and the local municipality where the property is located within 30 days of recording.

How Long Does the Closing and Tax Settlement Process Take?

Once a mortgage lender issues a formal "Clear to Close," the settlement agent prepares the final Closing Disclosure, triggering the mandatory 3-business-day waiting period prior to signing. On closing day, the physical signing session takes roughly 45 to 60 minutes. Because all 10 New Hampshire county registries accept electronic recording (e-recording), the deed and mortgage are typically recorded on the same business day (or the following morning for afternoon closings), at which point keys and sale proceeds are released.

Following the closing, the settlement agent or buyer has 30 calendar days from the date of recording to submit the post-closing tax declarations and the PA-34 Inventory of Property Transfer, while the seller's prior mortgage lender has up to 60 days under N.H. Rev. Stat. Ann. § 479:7 to record the formal mortgage discharge. If you need assistance reviewing a Closing Disclosure, calculating RETT exemptions, or resolving a title issue, consult a qualified New Hampshire real estate attorney from our directory.

Frequently Asked Questions (FAQ)