If you've been browsing land listings in New Hampshire or chatting with a local real estate agent, chances are you've heard the term "Current Use." And if your reaction was something like, "Wait… what does that mean?"—you're not alone!

It's a common source of confusion, but don't worry—We've got you covered. Understanding Current Use can save you money (or help you avoid unexpected costs), whether you're buying, selling, or already own land in New Hampshire.

So… What Is Current Use, Anyway?

At its core, Current Use is a tax program that gives landowners a break on property taxes—as long as they keep their land in its natural state. Instead of taxing undeveloped land at full market value, the program allows qualifying land to be taxed at a much lower rate.

To qualify, land must be at least 10 acres (unless it's farmland producing at least $2,500 per year).

Eligible properties include:

• Open space
• Farmland
• Managed forests
• Wetlands

The goal? To keep New Hampshire's rural charm intact and encourage landowners to hold onto those beautiful wide-open spaces. Helpful Current Use Criteria Booklet from the State of NH >>> Link

What This Means for Landowners

If you own land in New Hampshire, Current Use can help lower your property taxes—which is a win! But there's more to it:

Bonus Perk: If you allow public access for recreational activities like hiking, fishing, or skiing, you may get an additional 20% tax reduction.

Important Deadline: If you're thinking about enrolling your land, you need to apply by April 15th for it to take effect that tax year.

But What If You Want to Build?

This is where things get a little tricky. If you buy land that's in Current Use and decide to develop even a small portion of it, you could owe what's called a Land Use Change Tax (LUCT).

What's the damage? The tax is 10% of the market value of the portion you take out of the program. That can add up fast!

Example: Let's say you buy a 20-acre parcel under Current Use and decide to build on 2 acres. Those 2 acres will trigger the LUCT, and you'll owe 10% of their market value in taxes.

This is why it's so important to know a property's status before you buy—so there are no costly surprises down the road.

What Sellers Need to Keep in Mind

If you're selling land that's in Current Use, full transparency is key. Some buyers will love the lower tax rate, while others—especially those who want to build—need to know about potential tax penalties before making an offer.

Tip: If you're a buyer planning to develop, make sure you make your agent aware of your intentions so they can help explain what upfront cost you might have. That way, there are no last-minute headaches at closing.

Why This Matters for New Hampshire Communities

Beyond individual buyers and sellers, Current Use is a big deal for the entire state. It helps:

• Keep forests and open spaces intact
• Protect wildlife habitats
• Maintain New Hampshire's reputation for outdoor recreation

And let's be honest—those scenic landscapes are a huge part of what makes New Hampshire such a special place.

Final Thoughts: Stay Informed & Ask Questions

If you're buying or selling land, knowing how Current Use works can save you time, money, and stress.

As Rachael Brown says:

"Many people don't realize that Current Use is actually a tax benefit for landowners who want to preserve open space. It's a great program, but it's important to understand the details—especially if you're thinking of buying land that's enrolled in it."

So before making any decisions, chat with a local real estate expert who can walk you through the details. That way, you'll know exactly what to expect.

Want a Quick Explainer? Watch Rachael Brown's Video:

Watch on YouTube

Helpful Current Use Criteria Booklet from the State of NH >>> Link

Have questions? Give us a call. We are here to assist.