As an expert in the real estate market, I have seen firsthand the impact of property taxes on the cost of housing in Derry, New Hampshire. This charming town, located in Rockingham County, has become a popular destination for homebuyers due to its small-town feel and convenient location. However, like many other towns in New Hampshire, Derry has its own unique property tax system that can significantly affect the cost of homeownership.
The Basics of Property Taxes in Derry
Before we dive into the average cost of property taxes in Derry, let's first understand how property taxes are calculated in this town. In New Hampshire, property taxes are based on the assessed value of a property.This value is determined by the town's assessor and is typically based on the market value of the property. The tax rate is then applied to this assessed value to determine the amount of taxes owed. In Derry, the current tax rate for residential properties is $27.84 per $1,000 of assessed value. This means that if your home is assessed at $300,000, you can expect to pay approximately $8,352 in property taxes each year. Keep in mind that this tax rate can vary slightly from year to year as it is set by the town's budget and can be affected by changes in local government spending.
The Average Cost of Property Taxes in Derry
Now that we understand how property taxes are calculated in Derry, let's take a closer look at the average cost of property taxes in this town.According to data from the New Hampshire Department of Revenue Administration, the average residential property tax bill in Derry for 2020 was $7,919. This is slightly lower than the state average of $8,344. However, it's important to note that this average cost can vary significantly depending on the location and value of the property. For example, homes in more desirable neighborhoods or with higher assessed values will likely have higher property tax bills. On the other hand, homes in less desirable areas or with lower assessed values may have lower property tax bills.
Factors That Affect Property Taxes in Derry
There are several factors that can affect the cost of property taxes in Derry. One of the main factors is the town's budget and spending.As mentioned earlier, the tax rate is set by the town's budget, so any changes in local government spending can impact the tax rate and ultimately, the cost of property taxes. Another factor that can affect property taxes is the town's tax base. This refers to the total value of all taxable properties in Derry. If there is a decrease in the tax base, the town may need to increase the tax rate to make up for the loss in revenue. On the other hand, if there is an increase in the tax base, the town may be able to lower the tax rate. The condition and age of a property can also affect its assessed value and therefore, its property taxes.
Older homes may have a lower assessed value due to wear and tear, while newer homes may have a higher assessed value due to their modern features and amenities.
Ways to Lower Your Property Taxes
If you're a homeowner in Derry, you may be wondering if there are any ways to lower your property taxes. While you cannot change the town's budget or tax rate, there are a few things you can do to potentially reduce your property taxes.Appeal Your Property's Assessment:
If you believe that your property's assessed value is too high, you can appeal it with the town's assessor. This process involves providing evidence to support your claim and can potentially result in a lower assessed value and lower property taxes.Take Advantage of Tax Exemptions:
Derry offers several tax exemptions for certain groups of people, such as veterans, seniors, and disabled individuals. These exemptions can reduce the assessed value of your property and therefore, lower your property taxes.Invest in Energy-Efficient Upgrades:
Making energy-efficient upgrades to your home can not only save you money on utility bills, but it can also potentially lower your property taxes.Derry offers a tax exemption for properties that meet certain energy efficiency standards.
The Impact of Property Taxes on the Cost of Housing
Now that we have a better understanding of the average cost of property taxes in Derry, let's take a look at how these taxes can impact the overall cost of housing in this town. As mentioned earlier, property taxes are one of the main expenses that homeowners need to consider when purchasing a home. The higher the property taxes, the higher the overall cost of homeownership will be. In addition, high property taxes can also affect the resale value of a home. Potential buyers may be deterred from purchasing a home with high property taxes, which can make it more difficult to sell in the future.This is why it's important for homebuyers to carefully consider the cost of property taxes when looking at homes in Derry.
