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Short answer
The equalized tax rate is a town's tax rate adjusted as if every home were assessed at full market value. New Hampshire towns revalue only every few years, so assessments often trail market prices, and a town with low assessments can show a high rate. The state's Department of Revenue Administration (DRA) measures each town's assessment level each year, called the equalization ratio, so towns can be compared on an equal footing.
What is an equalization ratio?
It's the town's total assessed value compared with the market value of the same property, as measured by the DRA from recent sales. A ratio below 100 means assessments are lower than market prices; above 100 means they're higher. RSA 21-J:3 requires the state to equalize values every year so that shared taxes are split fairly among towns.
Why can't I compare two towns' tax rates directly?
Your bill is the assessed value times the rate. If Town A assesses homes at well below market and Town B at full market, Town A's rate has to be higher to raise the same money. The rate alone can make Town A look more expensive when the bills are similar. The equalized rate removes that difference.
Which number should I use when I'm buying?
- To compare towns: use the equalized rate, or better, compare real tax bills on similar homes.
- To estimate the tax on a specific house: use the town's actual rate times that home's assessed value from the tax card, not the price you're paying.
Try the NH property tax calculator or the Hillsborough County rate table.
What happens to the ratio after a revaluation?
Under RSA 75:8-a, towns must reappraise all property at least every five years. Right after a revaluation the ratio is usually close to 100, and the town's rate usually drops because assessments went up. It then drifts as the market moves. See why your bill can rise when the rate falls.
Which value does a lender use for my taxes?
Lenders use the actual tax: the town's current rate times the assessed value, or a projection when a new assessment is expected, such as on new construction. Equalized rates are for comparing towns, not for your escrow. See NH tax bills and escrow.
Sources
- NH RSA 21-J:3, Duties of the commissioner (equalization)
- NH RSA 75:1, How property is appraised
- NH RSA 75:8-a, Reappraisal every five years
Checked November 10, 2026. Rules and dates change, so confirm current details before you rely on them.
General information only, not tax or legal advice. Program availability, eligibility and terms vary by lender and are subject to change and to underwriting approval. Not a commitment to lend.