Costs of Selling Land in New Hampshire

Selling Costs in New Hampshire: What to Know

New Hampshire charges a real estate transfer tax of 75 cents per $100 of the price. Unlike most states, the law applies that rate to both the buyer and the seller, so each side pays its own share.

The state has no tax on personal income, so individuals do not pay state tax on the gain. This page lists each cost, who pays it, and a worked example for a $25,000 lot.

New Hampshire transfer tax: both sides pay

The tax is 75 cents per $100 of the price or fraction (RSA 78-B:1). If the price is $4,000 or less, the minimum is $20. RSA 78-B:4 applies the rate to the buyer and to the seller, and each must buy and attach the tax stamps (RSA 78-B:4).

So on a $25,000 lot, the seller pays $187.50 and the buyer pays $187.50. Some transfers are exempt under the same chapter, such as certain transfers to government bodies. Ask the closing agent if one fits your case.

Who pays what by custom

The transfer tax split is set by law. Other costs follow the contract. The buyer pays the $25 deed charge by statute and usually records the deed. Title insurance follows local practice.

Property taxes are usually prorated to the closing date. Check whether the town has billed for the full year, because the contract may credit one side.

Recording fees

Registers of deeds charge $10 for the first page and $4 for each added page, plus a $25 charge on each deed that the grantee pays (RSA 478:17-g). A register may add a surcharge of up to $2 per document (RSA 478:17-j).

Attorney or title company closing

Many New Hampshire closings are run by a lawyer, and title companies also close sales. Each side usually pays its own lawyer. For land held by an estate or with title problems, a lawyer is worth the cost.

Capital gains basics: federal and state

Your taxable gain is the sale price minus your selling costs and your basis. Basis is usually what you paid plus improvements such as surveys, roads or wells. For inherited land, basis is generally the value on the date of death; see IRS Publication 551.

If you owned the land for more than one year, the federal government taxes the gain at the long-term rates of 0%, 15% or 20%, based on your income. Land held one year or less is taxed at your ordinary income rate. See IRS Topic 409. Higher earners can also owe the 3.8% net investment income tax (IRS Topic 559).

The home sale exclusion covers your main home. A separate vacant lot does not usually qualify on its own; see IRS Topic 701. The closing agent normally reports the sale to the IRS on Form 1099-S.

New Hampshire does not tax individuals on wages or capital gains. The old interest and dividends tax chapter, RSA 77, is listed as repealed (RSA 77). Land held by a business can be subject to New Hampshire business taxes, so ask a tax professional in that case. This page is general information, not legal or tax advice. Confirm the details with the county office or a tax professional before you sign.

How selling to a cash buyer changes the costs

On a listed sale, the seller usually pays an agent commission plus their share of the closing costs. When you sell your New Hampshire land to EasyLotBuyer, there are no fees or commissions and we pay the closing costs. That includes the items in the table that a seller would normally pay at closing.

We make a cash offer within 24 hours and can close in as few as 7 days. If the land has back taxes, they are paid at closing from the sale. We also buy land with liens, title issues or no road access, and land held by heirs or an estate.

Your capital gains tax is still your own matter, because it depends on your basis and income. The closing agent will still report the sale on Form 1099-S.

• No agent commission
• No transfer tax or recording costs out of your pocket: we pay closing costs
• Back taxes paid at closing from the sale
• Try the offer calculator or the land value estimator
• See selling land in New Hampshire