New Hampshire Transfer Tax Explained For Dover Buyers

Buying in Dover comes with new terms and line items, and the New Hampshire real estate transfer tax is one of the most misunderstood. You want a clear picture of who pays it, how it’s calculated, and how it affects your offer and closing funds. In a few minutes, you’ll understand the essentials so you can write a confident, clean offer and avoid last‑minute surprises at the closing table. Let’s dive in.

What the transfer tax is

The New Hampshire real estate transfer tax is a state tax due on most transfers of real property. It is assessed when the deed is recorded and is remitted to the State of New Hampshire through the county registry of deeds.

The tax is typically calculated on the “consideration” paid for the property. In most residential sales, that is the purchase price. In some cases, consideration can include items like assumed mortgages or other value exchanged. A title company or the New Hampshire Department of Revenue Administration can confirm what counts as consideration for your specific deal.

The tax is collected at closing. Your title company or closing attorney usually gathers the funds, completes the required transfer tax return, and submits everything with the deed for recording.

Keep in mind that transfer tax is separate from other closing costs like registry recording fees, title insurance, property taxes, and any lender or title company fees.

Who pays it in Dover

State law requires the tax to be paid when the deed is recorded. Who actually pays it is negotiable and is set in your Purchase and Sale agreement.

In Strafford County and the Dover market, the seller most often pays the transfer tax, but practices can vary by listing, market conditions, and the type of sale. New construction, lender‑owned, or short sale transactions may follow different expectations. Your agent should confirm the seller’s position before you write.

There are exemptions for certain kinds of transfers, such as some transfers between spouses or to qualifying government bodies or nonprofits. Exemptions and paperwork vary, so verify any exemption with the New Hampshire Department of Revenue Administration and the Strafford County Registry of Deeds.

The deed recording package includes a transfer tax return or certificate. The title company or closing attorney typically prepares and files it on behalf of the buyer or seller, per the contract.

How it affects your offer and budget

If the seller pays, you usually do not need to set aside buyer funds for the transfer tax. Still, confirm the allocation in your contract and make sure it appears correctly on your Closing Disclosure.

If the seller asks you to pay it, treat the tax as a known dollar amount. You can keep your net the same by adjusting your offer price, requesting a seller credit elsewhere, or planning to bring that amount to closing in cash.

Even in markets where the seller usually pays, it is smart to include a small contingency in your closing budget or ask your lender and title company for a written estimate early.

Hypothetical examples for clarity

To see how this can influence your decision, here are simple illustrations using a hypothetical transfer tax rate of 0.30 percent. These are for example only. Always verify the current rate and calculation with your title company and the state.

• Example A: $350,000 purchase price at a hypothetical 0.30 percent rate would equal $1,050 in transfer tax.
• Example B: $450,000 purchase price at a hypothetical 0.30 percent rate would equal $1,350 in transfer tax.

Use numbers like these to decide whether to adjust your offer price, ask for a credit, or plan to bring additional cash if you agree to pay.

Offer strategy in Dover

• If sellers typically pay: Write a standard offer but include clear language naming who pays the transfer tax so there is no confusion at closing.
• If a seller wants you to pay: Convert the tax to a dollar amount and decide whether to lower your offer by that amount, request a credit, or bring the funds to closing.
• Competitive market trade‑offs: In a hot seller’s market, agreeing to pay or split the transfer tax can make your offer more attractive. In a buyer’s market, it can be reasonable to ask the seller to cover it or price your offer accordingly.

Lender and appraisal considerations

Transfer tax is typically treated as a closing cost. It is usually not included in the loan amount. If you plan to roll closing costs into financing, confirm with your lender whether transfer tax is allowed and how it affects loan‑to‑value calculations.

A clear clause for your contract

The simplest way to avoid confusion is to spell it out in your Purchase and Sale agreement. Many buyers use language like: “The parties agree that the real estate transfer tax due on recording of the deed shall be paid by [Seller or Buyer].”

Your agent and closing attorney can tailor this to your situation and confirm any related items like recording fees.

Practical checklist for Dover buyers

Pre‑offer

• Ask the listing agent, “Who does the seller expect to pay the transfer tax?”
• Request an estimated transfer tax amount from your agent or a local title company based on your planned offer price.
• Confirm with your lender which closing costs are allowed and whether any can be financed.

Offer drafting

• Include an explicit clause specifying who pays the real estate transfer tax.
• Be clear about any related recording fees and how they will be handled.

Under contract

• Order title and request a closing cost estimate listing transfer tax, recording fees, title insurance, and other costs separately.
• Confirm the title company or closing attorney will collect and remit the tax and file the transfer tax return.

Day of closing and recording

• Verify the transfer tax appears as a line item on your Closing Disclosure.
• Confirm the deed recorded and the transfer tax filing was accepted by the registry.

Smart questions to ask

• What is the exact transfer tax rate and how is it calculated for this transaction?
• Are there any exemptions and what documentation is required?
• What are the Strafford County recording fees and typical timing for recording?
• Will the title or closing agent collect and remit the tax and file the required return?

How Lombardi & Co helps you plan

You should not have to guess about closing costs. A local team will confirm who is paying the transfer tax on a specific listing, build the right clause into your offer, and coordinate with your lender and title company so the numbers match on your Closing Disclosure.

At Lombardi & Co, we help Dover buyers compare offer structures, model the impact on cash to close, and negotiate cleanly so your transaction stays on track through recording. If you are preparing to buy in Dover or the greater Seacoast, let’s map out your strategy and budget together.

Ready to get started? Connect with Lombardi & Co for a clear plan from offer through closing.

FAQs

What is New Hampshire’s real estate transfer tax and when is it paid?

• It is a state tax on most property transfers that is collected at closing and paid when the deed is recorded with the county registry of deeds.

In Dover and Strafford County, who typically pays the transfer tax?

• Local practice often has the seller paying, but it is negotiable and should be spelled out in your Purchase and Sale agreement for each transaction.

How can I estimate the transfer tax for my Dover offer?

• Ask your agent or title company for a quote using your planned price, and verify the current state rate and what counts as consideration for your deal.

Can I finance the transfer tax or roll it into my mortgage?

• It is usually treated as a closing cost and not part of the loan amount; check with your lender on what is allowed for your loan program.

Are any property transfers exempt from the New Hampshire transfer tax?

• Some transfers, like certain transfers between spouses or to qualifying government entities or nonprofits, may be exempt; verify with the state and the registry.

Who prepares and files the transfer tax paperwork at closing?

• The title company or closing attorney typically completes the transfer tax return and remits payment when submitting the deed for recording.

What should I look for on my Closing Disclosure regarding transfer tax?

• Confirm the correct payor is shown, the amount is accurate, and it is listed separately from other items like recording fees and title insurance.