Tax Credits and Exemptions

Tax Abatements, Credits, Exemptions and Relief Programs

There are several forms of tax relief available to qualifying taxpayers:

  • Abatements: Tax abatements are refunds of all or part of your tax. An example is an error in calculating the assessed value of your property or if you have suffered a financial hardship.
  • Exemptions: Tax exemptions reduce the assessed value of your property which is multiplied by the approved tax rate to determine the amount of your taxes. An example is the elderly exemption.
  • Tax Credits: Tax credits are deductions from the amount of your taxes. An example is the Veterans’ tax credit.
  • Tax Relief Programs: Low and Moderate Income Homeowners Property Tax Relief (State laws RSA 198:56 and RSA 198:57) and the Tax Deferral for Elderly and Disabled (State law RSA 72:38-a)

The two most common tax credits and exemptions in Lyme are the veterans’ tax credit and elderly exemption. The eligibility requirements and how to apply for these are explained in detail on their individual pages. In addition to these, there are several other tax abatements, exemptions and credits for which some Lyme taxpayers may qualify.

Blind Exemption (State law RSA 72:37):

If you are blind as documented by a certificate from the Blind Services Program, Bureau of Vocational Rehabilitation, Division of the State Education Department, you may qualify for this exemption of $67,500. There are no income or net asset limitations for this exemption. You must apply for this exemption by April 15th of the year preceeding the setting of the tax rate (State law RSA 72:33). Contact the Selectmen’s Office for additional information or assistance.

Deaf or Severely Hearing Impaired Exemption (State law RSA 72:38-b):

If you are deaf or have a severe hearing impairment (a 71 Db hearing average hearing loss or greater in the better ear as determined by a licensed audiologist or qualified otolaryngologist, rely on a visual means of communication (such as American Sign Language or speech recognition), your hearing is so impaired as to substantially limit you from processing linguistic information through hearing (with or without amplification) so as to require the use of an interpreter or auxiliary aid, have a net income of not more than $30,000 (if married a combined net income of less than $40,000) and have net assets of $150,000 or less (excluding the value of your actual residence and the amount of acreage required for the minimal lot size for you zoning district), you may qualify for this $135,000 tax exemption. You must apply for this exemption by April 15th of the year preceeding the setting of the tax rate. (State law RSA 72:33). Contact the Selectmen’s Office for additional information or assistance.

Disabled Exemption (State law RSA 72:37-b):

If you are found by the Social Security Administration (SSA) to be eligible under Title II or Title XVI of the federal Social Security Act for benefits to the disabled, have a net income of not more than $30,000 (if married a combined net income of less than $40,000) and have net assets of $150,000 or less (excluding the value of your actual residence and the amount of acreage equal to the minimum lot size for your zoning district), you may qualify for this $135,000 tax exemption. You must apply for this exemption by April 15th preceeding setting of the tax rate. (State law RSA 72:33). Contact the Selectmen’s Office for additional information or assistance.

Disabled Veteran Exemption (State law RSA 72:36-a):

If you are totally and permanently disabled from service connection (and satisfactory proof of such service connection is furnished), are a double amputee of the upper or lower extremities or any combination thereof, paraplegic, or have blindness of both eyes with visual acuity of 5/200 or less as the result of service connection and own a specially adapted homestead which has been acquired with the assistance of the Veterans Administration or which has been acquired using proceeds from the sale of any previous homestead which was acquired with the assistance of the Veterans Administration, the you or your surviving spouse, may be exempt from all taxation on said homestead. There are no income or net asset limitations for this exemption. You must apply for this exemption by April 15th of the year preceeding the setting of the tax rate. (State law RSA 72:33). Contact the Selectmen’s Office for additional information or assistance.

Hardship Abatement (State law RSA 76-16):

The Board of Selectmen may abate all or a portion of your taxes for cause in those instances where they deem that you unable to pay. This abatement is usually granted only in cases of a one-time severe hardship. Contact the Selectmen’s Office for more information or assistance on this program.

Low and Moderate Income Homeowners Property Tax Relief (State laws RSA 198:56 and RSA 198:57):

If you own a homested subject to the state education property tax and have a total household income of $20,000 or less if single or $40,000 or less if married or head of a New Hampshire household, you may apply to the State Department of Revenue Administration for relief of part or all of your State education tax. Additional information on this program is available from the State’s low and moderate income homeowners property tax relief website. You must apply to the State Department of Revenue Administration usually after May 1st but before July 1st for this tax relief. Contact the Selectmen’s Office for more information or assistance on this program.

Surviving Spouse Tax Credit (State law RSA 72:29-a):

If you are the surviving spouse of any person who was killed or died while on active duty in the armed forces of the United States or any of the armed forces of any of the governments associated with the United States in the wars, conflicts or armed conflicts, or combat zones as listed for the Veterans’ Tax Credit, you may receive a tax credit in the amount of $700 for the taxes due upon your real and personal property, whether residential or not, in the same municipality where you are a resident. There are no income or net asset limitations for this tax credit. You must apply for this exemption by April 15th of the year preceeding the setting of the tax rate. (State law RSA 72:33). Contact the Selectmen’s Office for additional information or assistance.

If you are at least 65 years old or eligible under Title II or Title XVI of the federal Social Security Act for benefits for the disabled; have owned your homestead for at least 5 consecutive years if the you are an elderly applicant or for at least one year if you are a disabled applicant; and are living in the home, the Board of Selectmen  may annually grant you a tax deferral for all or part of the taxes due, plus annual interest at 5 percent, if in their opinion the tax liability causes you an undue hardship or possible loss of the property. The total of tax liens on a particular property shall not be more than 85% of its equity value. There are no income or net asset limitations for this tax credit. You must apply for this exemption by April 15th of the year preceeding the setting of the tax rate (State law RSA 72:33). Contact the Selectmen’s Office for additional information or assistance.

Application Forms: