City Council Holds Public Hearings and City Staff Host a Lunch-and-Learn on Tax Relief for Veterans, the Elderly, and Disabled

On Monday, March 16, 2026 the Portsmouth, New Hampshire City Council will hold a public hearing to consider several options on whether to maintain or increase the current income limits for elderly and disabled tax exemptions.

The first two options under consideration by the City Council would keep the asset limits at $500,000 and align income limit increases with either the 2026 Social Security Cost of Living Increase (COLA) of 2.8%, or the ten-year rolling average of the November-to-November Boston-Cambridge-Newton, MA-NH Consumer Price Index (CPI-U) of 2.77%.

A third option proposed by the City Assessor would be to increase the elderly and disabled income limits to $65,000 if single, $85,000 if married, and increase the asset limit to $750,000. The City Council could also choose to maintain the current income limits.

Elderly and Disabled Tax Exemptions

The City currently exempts $375,000 from the assessed valuation of the primary home of residents ages 65 through 74, $450,000 for residents ages 75 to 79, and $525,000 for those 80 and older. Applicants must have resided in New Hampshire for at least three years to qualify for the elderly exemption.

The City also exempts $375,000 from the assessed value of the principal place of residence for any person eligible under Title II or Title XVI of the federal Social Security Act for benefits to people with disabilities. Applicants must have resided in New Hampshire for at least five years to qualify for the disabled exemption.

Veterans Tax Credit Changes

During the 2025 legislative session, the New Hampshire General Court approved House Bill 99, and Governor Ayotte signed it into law. The bill amends RSA 72:35, which governs the optional tax credits available to veterans with a service-connected total disability. The updated law prohibits combining the Tax Credit for Service-Connected Total Disability with any other veterans’ tax credits. This change means qualifying Portsmouth residents may no longer receive both the optional $750 Veterans Tax Credit and the optional $4,000 Tax Credit for Service‑Connected Total Disability.

The legislation also authorizes municipalities to vote on an increase to the maximum Tax Credit for Service-Connected Total Disability up to $5,000. This provision allows communities to ensure that qualifying veterans do not experience a reduction in their total tax relief under the updated law.

In response to these changes, the City Council held a public hearing on Tuesday, February 17, 2026, to consider updates to the Tax Credit for Service-Connected Total Disability. The City Council voted to increase the tax credit to the maximum amount of $5,000.

The tax credit applies only to the primary residence of the permanently disabled veteran or their surviving spouse. Certification of disability status from the United States Department of Veterans' Affairs is required to receive the tax credit.

Once approved by the City Council, any changes to the exemption or credits go into effect as of April 1, 2026. Applications for the Veterans Tax Credit, the Elderly and Disabled Exemptions are due to the Assessor’s Office no later than April 15, 2026, to receive the exemptions for the December 2026 tax bill.

Lunch-and-Learn Session on Tax Relief

The City Assessor will hold a lunch-and-learn session on March 19, 2026 from noon to 2 pm in Conference Room A at City Hall, located at 1 Junkins Avenue, to help residents understand the exemption and tax credit rules and application process.

For more information, applications, and a full list of requirements for tax exemptions and credits, visit: portsnh.co/assessors or call the City Assessor’s Office at 603-610-7249.