What happens if I pay my New Hampshire property taxes late?

When does interest start?

Your bill must say when interest begins. Under RSA 76:13, it's generally December 1 for unpaid taxes, but when a bill goes out between November 2 and March 31, interest doesn't start until 30 days after the bills are mailed. Many towns bill twice a year, so check each bill's due date. See your first NH property tax bills.

What is a tax lien?

If all of a year's taxes aren't paid by December 1 after they're assessed, a town that has adopted the lien process can place a real estate tax lien on the property (RSA 80:59). It has priority over all other liens, including your mortgage. Before that:

• The tax collector must send you a notice by certified or registered mail at least 30 days ahead, with the amount owed and the last day and time a payment will be accepted (RSA 80:60).
• Within 60 days after the lien, the town must notify any mortgage holders (RSA 80:65).

Once the lien is recorded, interest on the full lien amount runs at 14 percent a year until it's paid, plus costs (RSA 80:69). Anyone with a legal interest in the property can pay it off, and you can usually make partial payments.

Can I lose my home?

Yes, if the lien isn't paid off. Under RSA 80:76 the redemption period is two years from the lien. After that, the collector can deed the property to the lienholder, usually the town, but must first send the owner a certified-mail notice at least 30 days ahead (RSA 80:77). If the town later sells a tax-deeded property, it can keep only the taxes, interest, costs and penalties owed; the rest goes to the former owner and lienholders, through the court if needed (RSA 80:88). If you're at that point, talk with a New Hampshire attorney right away.

What about my mortgage?

Because a tax lien comes ahead of the mortgage and the town notifies your mortgage holder, the mortgage company has a reason to act. Check your mortgage documents: many let the lender pay overdue taxes to protect the home and charge you, which may mean setting up an escrow account. See how escrow works and whether you can skip escrow.

What if I can't afford my tax bill?

Call your town's tax collector early. You may also qualify for help: see NH property tax relief, tax deferral for older and disabled homeowners, and how NH property taxes work, including abatement if you think your assessment is too high.