Portsmouth Property Tax: Who Pays What?

How the tax burden divides between residential and non-residential properties

62%
Residential
$6.31 billion assessed
7,710 parcels (85% of properties)
38%
Non-Residential
$3.82 billion assessed
1,407 parcels (15% of properties)
85% of parcels
15%

Share of total properties — but residential pays 62% of taxes

What This Means

Portsmouth's $10.14 billion tax base is split between residential properties—single-family homes, condos, multi-family units, mobile homes, and vacant residential land—and non-residential properties.

Homeowners collectively pay 62 cents of every property tax dollar. Non-residential properties pay the remaining 38 cents.

What Counts as "Non-Residential"?

For tax purposes, commercial properties include everything that isn't classified as residential:

🏢
Apartments
Large complexes
🏨
Hotels
Hospitality
🛒
Retail
Stores & malls
🏥
Healthcare
Hospitals & offices
Utilities
Infrastructure
🏭
Industrial
Manufacturing

Note: Pease Airport properties are assessed separately and not included in these figures.

The Burden Has Shifted

Between FY2021 and FY2025, residential property values rose faster than commercial values. The result: homeowners now carry a larger share of the tax burden than they did four years ago.

FY2021
58%
Residential share
FY2025
62%
Residential share

A 4-percentage-point shift may sound small, but on a $10 billion tax base, it represents tens of millions of dollars moving from commercial to residential taxpayers.

Why This Happened

Portsmouth's total assessed value grew 60% in four years. But that growth wasn't evenly distributed:

Total assessed value
$6.33B $10.14B +60%
Residential valuation
$3.66B $6.31B +73%
Commercial valuation
$2.67B $3.82B +43%

Residential values rose 73%—nearly twice the rate of commercial values (43%). When your slice of the pie grows faster than someone else's, you pay a larger share of the bill.

The Revaluation Effect

New Hampshire requires cities to revalue all properties at least every five years. Portsmouth's 2024 revaluation was the first since 2019—capturing five years of market changes all at once.

During that time, the housing market surged while some commercial sectors (office, retail, hotels) faced headwinds. The revaluation locked in that disparity.

1,407
Commercial Parcels
$600M+
Top 10 Combined
$6.7M
Top 10 Taxes/Year

Largest Commercial Taxpayers

The top 10 commercial properties—less than 1% of all commercial parcels—contribute over $6.7 million annually. Click any row for details.

1
Public Service Co. of NH
Utility Infrastructure
$1.85M
2
Portsmouth Regional Hospital
Healthcare
$1.23M
3
West End Yards Apartments
Apartments
$943K
4
Portwalk Place Apartments
Apartments
$790K
5
Northern Utilities (Gas)
Utility Infrastructure
$711K
6
Arbor View & The Pines
Apartments
$577K
7
AC Hotel Portsmouth
Hotel
$467K
8
Sheraton Harborside
Hotel
$417K
9
Fox Run Mall
Retail
$400K
10
West End Yards (125 Brewery)
Mixed Use
$396K
11
Hotel Thaxter
Hotel
$380K
12
Lafayette Plaza
Retail
$374K
13
Constitution Apartments
Apartments
$347K
14
Liberty Mutual Office
Office
$335K
15
Sig Sauer Headquarters
Manufacturing
$304K

Concentration at the Top

The top 100 commercial properties represent just 7% of commercial parcels but account for a disproportionate share of non-residential tax revenue. Utilities, hospitals, and large apartment complexes dominate the list.

The Challenge

We can't control how fast home values appreciate. Market forces drive that. But when residential values rise faster than commercial values, the tax burden shifts onto homeowners—regardless of whether their income has kept pace.

The question isn't whether this shift happened. It did. The question is what, if anything, to do about it.

One Lever: More Housing

If the burden is going to sit primarily on residential properties, the most effective lever is adding more residential units.

More homes = more taxpayers. The same city services get supported by more people, reducing pressure on individual bills and helping prevent longtime residents from being priced out by appreciation they didn't create.

This isn't about increasing total tax revenue—it's about distributing the existing burden more broadly.

New Development Is Already Helping

Large projects completed in 2024–2025 have added to the tax base and helped offset rate increases.

New property development (2024–25) ~$200 million
Rate impact offset −23¢ per $1,000
Projected increase reduced by 41%

The FY2026 tax rate is $11.51 per $1,000—only 33 cents higher than FY2025. Without new development, it would have been higher.

If We Can't Change Appreciation...

We have to change distribution. That means:

  • Supporting housing development that adds to the tax base
  • Welcoming commercial projects that shift burden back from residential
  • Ensuring tax relief programs reach those most affected by appreciation

The Property Tax Formula

Your property tax is straightforward:

(Assessed Value ÷ 1,000) × Tax Rate = Annual Tax

For FY2025, with a $11.18 rate, a home assessed at $500,000 pays $5,590 annually.

What Gets Taxed

In New Hampshire, property tax is based solely on the assessed value of land and buildings—not on business revenue, profits, or income generated at a location.

Assessors use three methods to determine value:

  • Sales comparison: What similar properties sold for
  • Cost approach: What it would cost to rebuild
  • Income approach: For commercial properties, potential rental income helps estimate property value (not business profits)

One Rate for Everyone

Unlike some states, New Hampshire uses a single tax rate for all property types. Residential and commercial properties pay the same rate per $1,000 of assessed value.

Policy note: Some states allow "split rates" where commercial properties pay a higher rate than residential. Some tax business equipment and inventory separately. New Hampshire does neither—property value alone determines the tax.

Why Revaluations Matter

New Hampshire requires cities to revalue all properties at least every five years. Between revaluations, properties are taxed on potentially outdated values—which can create inequities when different property types appreciate at different rates.

Portsmouth's 2024 revaluation was the first since 2019, capturing five years of market changes all at once.

Look Up Any Property

Search assessed values, property details, and tax information for any parcel in Portsmouth.

Tax Relief Programs

Portsmouth offers exemptions for eligible residents including seniors, veterans, and those with disabilities.

Get Involved

Public meetings where tax policy and budget decisions are discussed.