New Hampshire Transfer Tax Explained For Hudson

Buying or selling a home in Hudson comes with a lot of numbers to track. One cost that can surprise people is New Hampshire’s real estate transfer tax. You may be wondering who pays it, how much to plan for, and when it is due. In this guide, you’ll learn how the tax works for Hudson transactions, how to estimate it accurately, common exemptions, and what to expect at closing. Let’s dive in.

What the transfer tax is

New Hampshire’s transfer tax is a state tax on the transfer of real property. It applies to the sale price or other consideration when title changes hands and is usually paid when the deed is recorded.

The tax is administered at the state level. Payment is typically collected by the closing attorney or title company and submitted when the deed is recorded with the county Registry of Deeds. Hudson does not commonly have a separate municipal transfer tax, though you will still pay recording fees and follow local recording procedures.

If you want to confirm the current rate and rules, the New Hampshire state revenue authority and state statutes are the official sources. For local filing questions, the Hillsborough County Registry of Deeds and Hudson town offices are your practical points of contact.

How calculation and payment work

Determine the taxable amount

In a typical sale, the taxable base is the sales price listed in the Purchase & Sale and deed. In some special transfers, the tax can be based on fair market value or another statutory measure if the price is not straightforward.

Find the current rate and formula

The transfer tax equals the sale price multiplied by the state’s transfer tax rate. The rate may be shown as a percentage or as dollars per $100 of value in state guidance. Always verify the current rate with the New Hampshire Department of Revenue Administration, the state statutes, or your closing agent before you finalize numbers.

When and how it is paid

Payment is due before or at recording of the deed. Your closing attorney or title company prepares the required transfer tax filing and remits the tax as part of recording. You will see the tax as a line item on your settlement statement.

Evidence of payment

The Registry of Deeds record will show your deed. The closing package will include confirmation that the transfer tax was paid or that an accepted exemption applies, often through a stamped document or recorded notation.

Who typically pays in Hudson

Payment of the transfer tax is negotiable in New Hampshire. Your Purchase & Sale Agreement should clearly assign responsibility to the buyer, seller, or both. Many transactions in New England involve the seller paying or the parties splitting the cost, but practice varies by market conditions, negotiations, and brokerage customs.

At closing, the closing agent collects funds from the responsible party and shows the tax on the settlement statement as a debit to that party and a credit to the other party as agreed. If you are unsure about local norms, ask your agent or closing attorney for current Hudson practices so you can negotiate with clarity.

Exemptions and special cases

Some transfers qualify for exemptions or special treatment. If you think you qualify, confirm early with your closing agent and gather documents in advance. Examples include:

• Transfers between spouses, including certain divorce or death-related transfers.
• Gifts or certain intra-family conveyances, where special rules or affidavits may apply.
• Transfers to or from governmental entities, where applicable by statute.
• Foreclosures or deed-in-lieu transactions with specific statutory treatment.
• Fiduciary, probate, or corrective deeds that may have unique filing rules.
• Non-cash or partial consideration transfers, where the taxable base may differ from the stated price.

Eligibility typically requires supporting affidavits or state forms at recording. Your closing attorney will advise on what the Registry of Deeds needs to accept an exemption.

Estimate your transfer tax and budget

Accurate budgeting helps you avoid last-minute surprises. Here is a simple approach you can follow.

Step A: Confirm the current rate

• Ask your closing attorney or title company to confirm the current New Hampshire transfer tax rate and calculation method early in your process.
• You can also verify with the New Hampshire Department of Revenue Administration or the state statutes to ensure you have the most up-to-date rate.

Step B: Use the basic formula

• Transfer tax amount = Sale price × RATE
• Example formats to show the math (illustrative only — verify RATE before using):
  • If RATE = 0.75%: $350,000 × 0.0075 = $2,625
  • If RATE = 1.50%: $350,000 × 0.015 = $5,250

These examples show how to plug in the rate. They are not the current New Hampshire figure. Always confirm the exact rate before you finalize your numbers.

Step C: Add related closing charges

To get a realistic total, include:

• Recording fees charged by the Hillsborough County Registry of Deeds.
• Title insurance premiums, if applicable, based on policy rate tables.
• Attorney or closing agent fees for document preparation and filing.
• Any required local certifications. Municipal add-ons are rare in New Hampshire, but confirm.

If the Purchase & Sale assigns the transfer tax to the seller, the seller should include it in their closing costs and subtract it from expected net proceeds. If the buyer is responsible, include the tax in the cash to close alongside the down payment, loan costs, prepaids, and reserves.

How it will appear on your settlement statement

• If the seller pays: the transfer tax shows as a seller debit. Seller net proceeds = sale price minus commissions, transfer tax, recording-related fees, and any agreed credits.
• If the buyer pays: the transfer tax shows as a buyer debit and is part of the buyer’s cash to close, along with lender fees and prepaids.
• If shared: the settlement statement shows each party’s assigned share.

Ask for a preliminary settlement statement during the loan processing or inspection period. This gives you time to adjust your budget and avoid surprises.

Documents you will see at closing

Your closing team prepares and submits the required paperwork. Expect to see:

• The deed conveying title (warranty, quitclaim, or other deed type).
• The real estate transfer tax return or state-required certificate/affidavit.
• Any exemption affidavits if an exemption applies.
• Proper identification and signatures as required for recording.

The closing agent submits the deed and tax to the Registry of Deeds and provides proof of recording once complete.

Practical tips for Hudson buyers and sellers

• Put responsibility in writing. Make sure the Purchase & Sale clearly states who pays the transfer tax.
• Ask for numbers early. Request a preliminary settlement statement with the transfer tax included.
• For sellers focused on net: subtract the transfer tax and other closing costs from the sale price to see an accurate net proceeds estimate.
• For buyers budgeting cash to close: include the transfer tax if you are responsible, plus lender costs and prepaids.
• If you believe you qualify for an exemption: gather supporting documents early and confirm acceptance with your closing agent and the Registry of Deeds.
• If you are financing: check with your lender about title insurance requirements and any tax-related documentation they may need.

Who to contact for authoritative details

• New Hampshire Department of Revenue Administration: for the current rate, forms, and instructions.
• New Hampshire Revised Statutes Annotated: for statutory definitions, exemptions, and calculation rules.
• Hillsborough County Registry of Deeds: for recording fees, submission requirements, and processing timelines.
• Town of Hudson offices: for local procedural questions related to recording.
• Your closing attorney or title company: for the exact dollar amount that will appear on your settlement statement.

Quick example scenario

Imagine a $400,000 sale in Hudson where the seller agrees to pay the transfer tax. The amount would be:

• Transfer tax = $400,000 × RATE
• The seller would add this figure to their other closing costs to calculate net proceeds.

If instead the buyer agrees to pay, the same amount would be added to the buyer’s cash to close. In either case, ask your closing agent for the exact figure using the current state rate.

Ready to plan your Hudson closing?

Whether you are buying or selling, a clear plan for the transfer tax helps you negotiate confidently and avoid last-minute stress. If you want a clean, customized estimate for your situation and local guidance on Hudson norms, reach out to the team that knows Southern New Hampshire. Work with Pat Clancey Realty for practical advice, steady communication, and hands-on support from offer to recording.

FAQs

Who pays the New Hampshire transfer tax in a Hudson home sale?

• It is negotiable in New Hampshire. Your Purchase & Sale Agreement should assign responsibility to the buyer, seller, or both.

When is the transfer tax due for a Hudson closing?

• Payment is collected before or at the time the deed is recorded. The closing attorney or title company remits the tax during recording.

How do I calculate the New Hampshire transfer tax amount?

• Multiply the sale price by the current state transfer tax rate. Confirm the exact rate with your closing agent or the state revenue authority.

Are there exemptions from the transfer tax in New Hampshire?

• Some transfers, such as certain spousal, intra-family, governmental, foreclosure-related, or fiduciary transactions, may qualify with proper affidavits. Confirm eligibility in advance.

Do Hillsborough County fees replace the state transfer tax?

• No. County recording fees are separate charges. The state transfer tax is a distinct cost that applies when property is conveyed.

Is the New Hampshire transfer tax deductible on my federal taxes?

• Generally it is not deductible as a routine expense for most buyers or sellers. Consult a tax advisor about your specific situation.