1031 Exchanges in New Hampshire: Rules, Taxes, Insurance, and the Long Arc

A Shop 1031 research page. Reviewed 2026-06-03. Every claim sourced; sources collected at the foot of the page.

New Hampshire is a no-income-tax state (post-2025) with one of the highest effective property tax rates in the country, not a low-overhead jurisdiction. The distinction matters because the Interest and Dividends Tax was repealed effective January 1, 2025, leaving New Hampshire with no personal income tax of any kind, but the compensating property-tax burden runs above 1.6 percent of fair market value on most commercial property. New Hampshire’s Business Profits Tax at 7.5 percent applies to most business entities including those holding commercial real estate above the gross receipts threshold.

§1. 1031 mechanics in New Hampshire

The federal floor applies under 26 U.S.C. §1031 and 26 C.F.R. §1.1031(k)-1. ^{1 2}

New Hampshire has no personal income tax effective January 1, 2025, following the repeal of the Interest and Dividends Tax under House Bill 2 (2023). There is no state-level individual-income conformity question for 1031 deferral. ³

New Hampshire imposes a Business Profits Tax (BPT) at 7.5 percent on business organizations with gross business income above $109,000 (current threshold) and a Business Enterprise Tax (BET) at 0.55 percent of the BET base. Both taxes can apply to entities holding New Hampshire commercial real estate. ⁴

New Hampshire imposes a Real Estate Transfer Tax under RSA 78-B at $0.75 per $100 of consideration on both buyer and seller (combined effective rate of $1.50 per $100, or 1.5 percent of consideration). On a $5,000,000 acquisition, the combined buyer-and-seller transfer tax runs $75,000. There is no §1031 exemption from the real estate transfer tax. ⁵

New Hampshire imposes no state-level QI registration regime.

New Hampshire is an attorney-state for real estate closings.

§2. Property tax in New Hampshire

New Hampshire has an effective property tax rate of approximately 1.61 percent of owner-occupied housing value, among the top five highest in the country. The structural mechanics are governed by RSA Title V (Taxation), with assessment administered at the municipal level. New Hampshire relies heavily on property tax in lieu of broad-based sales and income taxes. ⁶

Harlow’s note on unit economics. On a $5,000,000 New Hampshire commercial acquisition, year-one property tax runs roughly $80,000 to $120,000 depending on the specific municipality. The property-tax operating-expense line is the dominant New Hampshire cost differential relative to lower-property-tax states.

§3. Property insurance in New Hampshire

New Hampshire property insurance is dominated by nor’easter, winter-storm, ice-storm, and snow-load exposure. The seacoast carries hurricane and named-storm exposure. The New Hampshire Insurance Department regulates carrier conduct. ⁷

Harlow’s note on unit economics. For a $5,000,000 New Hampshire inland commercial property, expect property-insurance expense in the range of 0.4 to 0.8 percent of insured value.

§4. Demographic trends

New Hampshire’s population stood at approximately 1.4 million as of 2025 Census estimates, with modest positive net migration concentrated in the southern tier (Rockingham, Hillsborough, Merrimack Counties). Boston-metro spillover and Massachusetts out-migration support the southern New Hampshire growth. ^{8 9}

Median household income in New Hampshire was approximately $94,000 in 2024, well above the national median. ^{10 11}

The major New Hampshire markets are Manchester-Nashua (approximately 425,000 population), the seacoast (Portsmouth-Dover-Rochester corridor, approximately 220,000), Concord (approximately 90,000), and Keene (approximately 95,000).

§5. Unique legal and financial considerations

The first is the dual-side Real Estate Transfer Tax, addressed in §1.

The second is the Business Profits Tax application to entity-owned commercial real estate.

The third is the high property tax effective rate, addressed in §2.

The fourth is the absence of a personal income tax following the 2025 I&D Tax repeal, which removes the state-level conformity question for individual exchangers.

§6. Closing summary and the work ahead

The New Hampshire 1031 exchanger is operating in a market with a clear set of distinguishing features. The federal floor applies; New Hampshire has no personal income tax effective 2025; the Business Profits Tax at 7.5 percent applies to most entities holding commercial real estate; the Real Estate Transfer Tax of 1.5 percent (split between buyer and seller) applies at recording with no §1031 exemption; the property tax effective rate is among the highest in the country; the southern tier benefits from Boston-metro spillover; insurance exposure is dominated by winter and nor’easter. None of these is a reason to avoid a New Hampshire exchange. Each is a reason to underwrite one carefully. The jurisdiction-specific factors above are starting-point context. A state-experienced CRE professional will translate them into deal-specific judgment.

This page is the working map. The actual exchange is run by people. A New Hampshire-licensed real estate attorney, a New Hampshire-licensed CPA familiar with §1031 and the BPT interaction, a Qualified Intermediary, and a CRE professional who knows this market and these properties. Shop 1031 is the analytics layer that triages which deals deserve your time. The professionals do the work.

See underwritten New Hampshire deals that fit your exchange →

Get matched with a New Hampshire 1031 expert →

Read the Shop 1031 methodology →

Shop 1031 is an independent analytics platform. We are not a brokerage, a law firm, a tax advisor, a lender, or a Qualified Intermediary. Every 1031 exchange should be reviewed by a state-licensed real estate attorney, a CPA familiar with IRC §1031, and a QI. Brokerage and advisory services, when used, are provided by independently licensed third parties under separate engagement. This page is research, not advice. The New Hampshire-specific surfaces discussed (Real Estate Transfer Tax of 1.5 percent split between buyer and seller, Business Profits Tax application to entity-owned commercial real estate, very high effective property tax with municipal-level dispersion, post-2025 absence of personal income tax) each carry material risk if mishandled and should be addressed with a New Hampshire-licensed attorney, a New Hampshire-licensed CPA, and a Qualified Intermediary before identification, not after.

Federal authority: 26 U.S.C. §1031; 26 C.F.R. §1.1031(k)-1.

New Hampshire authority: N.H. R.S.A. 78-B (Real Estate Transfer Tax), 77-A (Business Profits Tax), 77-E (Business Enterprise Tax); Title V (Taxation).

References