Do you pay taxes on inherited property in New Hampshire? No, inheriting property doesn’t automatically trigger a tax bill. New Hampshire has no state inheritance tax, and federal estate taxes only apply to estates exceeding $15 million (2026). However, you will owe federal capital gains taxes if you sell the inherited property for more than its stepped-up basis value.
The stepped-up basis resets your inherited property’s cost basis to fair market value on the date of inheritance. This means selling immediately could result in zero capital gains taxes. The longer you hold the property, the more it may appreciate, and that growth becomes taxable when you sell.
Three taxes can apply to inherited property:
- Inheritance taxes: Only 6 states collect them; New Hampshire is not one
- Estate taxes: Paid by the estate before distribution; exempt under $15 million (2026)
- Capital gains taxes: Only triggered when you sell for a profit above the stepped-up basis
For New Hampshire heirs looking to maximize their tax advantage, selling an inherited property quickly, before additional appreciation occurs, often makes the most financial sense. Cash home buyers can close in as little as 7 days, helping you lock in your stepped-up basis benefit.
Inheriting Property Doesn’t Always Mean a Tax Bill
Here’s the good news: receiving an inheritance doesn’t automatically trigger a hefty tax payment. However, you need to know exactly where you stand financially before assuming you’re in the clear. When property or assets pass into your hands through inheritance, three distinct tax categories could come into play:
Inheritance Taxes: A State-Level Concern
Inheritance taxes require heirs to pay based on the value of what they receive. Here’s what you should know: the federal government doesn’t impose inheritance taxes at all. Only six states currently collect them. Since these rules vary significantly by location, check your specific state’s requirements to determine if this applies to you. The U.S. Department of Housing and Urban Development provides resources on property ownership regulations that may help clarify state-specific rules.
Estate Taxes: What Gets Paid Before You Inherit
Estate taxes work differently, they come out of the estate before any assets reach your hands. The key number to remember is the exemption threshold. For 2026, estates valued under $15 million (or $30 million for married couples) owe nothing. In 2025, that figure sat at $13.99 million ($27.98 million for couples).
Here’s the critical detail: even if an estate exceeds these limits, taxes only apply to the amount over the threshold. So if an estate is worth $15.1 million in 2026, the IRS taxes just the $100,000 above the exemption. Everything else transfers tax-free.
Capital Gains Taxes: Triggered Only When You Sell
Capital gains taxes apply to the increased value of inherited assets, but timing matters. You won’t owe anything simply by receiving an inheritance. These taxes only kick in when you decide to sell an asset for more than its inherited value. Until that sale happens, no capital gains tax is due. According to research from the Library of Congress, real estate remains one of the most commonly inherited asset classes in the United States.
How Inherited Cash Gets Taxed
Cash inheritances fall under either inheritance taxes or estate taxes, never both. Your responsibilities differ depending on which applies. With inheritance taxes, you must file and pay directly. With estate taxes, the IRS collects from the estate before distribution. The practical result? Most heirs never owe taxes, including income tax, on cash they receive from an inheritance.
Property, Stocks, and Other Assets: Generally Tax-Free at Transfer
Inherit a house, stock portfolio, or other valuable asset? The IRS won’t send you a bill just for receiving it. When your grandparents leave you their home, for example, you owe nothing on the property’s value at the time of transfer. The same applies to stocks, vehicles, jewelry, and most other inherited assets. The Consumer Financial Protection Bureau’s housing resources offer guidance on understanding property transfers and ownership rights.
Know the Exceptions That Could Trigger Taxes
Certain inherited assets do carry tax obligations, particularly those generating ongoing income. Watch for these situations:
- Income-producing investments that pay dividends or interest
- Retirement accounts like IRAs and 401(k)s with required distributions
- Active businesses that continue generating revenue
One more tax to plan for: capital gains. The moment you sell an inherited asset for a profit, capital gains taxes apply. Hold the asset, and you defer this obligation. Sell it, and you’ll need to account for the gain on your tax return.
Capital Gains and the Stepped-Up Basis: Your Key Tax Advantage
The stepped-up basis is one of the most valuable tax benefits available to heirs. When you inherit property, whether it’s real estate, stocks, or nearly any other asset, the IRS resets the asset’s base value to its market price on the day you receive it. Sell immediately after inheriting, and you could owe zero capital gains taxes.
This rule applies consistently whether you’re the sole heir or share ownership with others. For jointly inherited property, capital gains taxes split proportionally based on each owner’s stake.
Understanding How Capital Gains Taxes Work
Capital gains taxes only apply when you sell an asset at a profit. The IRS calculates your taxable gain using two figures:
- Sale price: The amount you receive when selling
- Cost basis: The original purchase price
Subtract the cost basis from the sale price, and you get your taxable gain. Buy a stock at $10 and sell it at $50? You owe capital gains taxes on the $40 profit. For comprehensive education on financial decisions related to property, Fannie Mae’s education portal offers valuable insights.
See the Stepped-Up Basis in Action
Consider this real-world scenario: Your grandparents purchased their home decades ago for $50,000. Today, it’s worth $800,000. If they sold it themselves, they’d face potential capital gains taxes on $750,000 in appreciation.
(Note: Homeowners can exclude up to $500,000 in gains for married couples filing jointly, or $250,000 for individuals, if the property served as their primary residence for at least two of the previous five years.)
Without stepped-up basis (if grandparents sold): $800,000 (sale price) − $50,000 (original cost basis) = $750,000 taxable gain
Now, instead, they pass the home to you. The moment you inherit, the IRS steps up the cost basis to the current $800,000 market value. Sell immediately, and here’s what happens:
With stepped-up basis (immediate sale after inheritance): $800,000 (sale price) − $800,000 (stepped-up basis) = $0 taxable gain
What If You Hold the Property?
Decide to keep the house for a year, and it appreciates another $100,000? You’ll only owe capital gains taxes on the growth that occurred after you inherited:
Selling after one year of appreciation: $900,000 (sale price) − $800,000 (stepped-up basis) = $100,000 taxable gain
The stepped-up basis dramatically reduces, and often eliminates, capital gains taxes for heirs. This single provision is why most people who inherit assets end up paying little to no tax on their inheritance. Data from the National Association of Realtors shows that inherited properties make up a significant portion of real estate transactions each year.
The Bottom Line on Inherited Property and Capital Gains
If you’re set to receive assets from an estate or trust, understanding your tax options can save you significant money. Here’s what to remember: the IRS applies a stepped-up cost basis to inherited property, which means you won’t automatically owe taxes when assets transfer to you. Capital gains taxes only enter the picture if you sell, and even then, you’re only taxed on appreciation that occurred after you inherited.
Take time to explore legitimate strategies for minimizing capital gains exposure on inherited property. Consider consulting a tax professional or financial advisor who can help you structure your finances with these tax implications in mind.
Smart Strategies for Managing Capital Gains Taxes
Capital gains represent one of the tax code’s most complex areas, but you don’t have to navigate it alone. Here’s how to take control:
Work with a qualified financial advisor. An experienced advisor can break down your specific situation and identify opportunities to minimize your tax burden. Educational programs like Framework Homeownership can help you understand the fundamentals of property ownership and financial planning.
Calculate your potential tax liability. Use federal income tax calculators to estimate what you’ll owe. Running these numbers helps you plan effectively, not just for this tax year, but for years to come. The Federal Housing Finance Agency tracks housing market trends that can help you anticipate property values.
Inherited a Property in New Hampshire? Here’s How to Sell Fast and Maximize Your Tax Advantage
Inheriting a home in the Granite State often comes with mixed emotions, and pressing financial decisions. The good news: the stepped-up basis rule works in your favor, especially if you act quickly. Sell an inherited property immediately, and you could owe zero capital gains taxes on the transaction.
But here’s the challenge many New Hampshire heirs face: inherited homes often need work. Maybe your family’s lake house in the Lakes Region has deferred maintenance, your parents’ Colonial in Manchester needs updating, or there’s a lifetime of belongings to clear out of a property in Nashua or Concord. Traditional real estate sales require repairs, staging, showings, and months of waiting, time that could cost you money if the property appreciates beyond its stepped-up basis.
Why Selling Fast Makes Financial Sense for Inherited New Hampshire Homes
Every day you hold an inherited property, its value may change. Remember: you only avoid capital gains taxes on the value at the time of inheritance. Any appreciation after that becomes taxable when you sell. If you inherited a home worth $450,000 and it gains $50,000 in value while you’re preparing it for a traditional sale, you’ll owe capital gains taxes on that $50,000. Redfin’s data center provides current market analytics that can help you track property appreciation in your area.
New Hampshire’s real estate market has seen significant appreciation in recent years, making quick action even more important for heirs looking to preserve their tax advantage.
A fast cash sale lets you:
- Lock in your stepped-up basis advantage before additional appreciation occurs
- Avoid costly repairs on a property you never planned to keep
- Skip real estate commissions that cut into your inheritance
- Close on your timeline, sometimes in as little as 7 days
- Eliminate the stress of managing a property from out of state
Sell Your Inherited New Hampshire Home As-Is
At New England Home Buyers, we specialize in helping heirs who need to sell inherited properties quickly throughout New Hampshire, from the Seacoast to the White Mountains and everywhere in between. We buy houses in any condition in Merrimack, Portsmouth, Rochester, Salem, Londonderry, Hudson, and communities across the state.
No repairs. No cleaning. No showings required.
Whether you’re dealing with a house full of belongings, a property with outdated systems, or a home that’s been sitting vacant, we handle everything after closing. You get a fair cash offer within 24 hours and can close in as few as 7 days.
New Hampshire Has No State Income Tax, But Capital Gains Still Matter
While New Hampshire doesn’t tax earned income, the state does tax interest and dividends. More importantly, you’re still subject to federal capital gains taxes on inherited property sales. Acting quickly to sell while your stepped-up basis aligns with market value helps you keep more of your inheritance.
Ready to turn your inherited New Hampshire property into cash while maximizing your tax advantage? Contact us for a no-obligation cash offer. We’ll walk you through every step with honesty, expertise, and compassion, no matter where in New Hampshire your inherited property is located.
Take Control of Your Inherited Property Today
Navigating inherited property taxes doesn’t have to be overwhelming. Armed with the right knowledge, you can make smart decisions that protect your financial interests. The stepped-up basis remains one of the most powerful tax advantages available to heirs, but only if you understand how to use it strategically.
Whether you decide to hold, rent, or sell your inherited New Hampshire property, timing and preparation matter. For many heirs, selling quickly to a trusted cash home buying business offers the clearest path to preserving their tax advantage while avoiding the headaches of repairs, listings, and prolonged uncertainty. Homebuyer education programs like Freddie Mac’s CreditSmart and eHome America can help you understand the broader real estate landscape.
At New England Home Buyers, we’ve built our business around helping families like yours navigate these exact situations. We combine over 20 years of experience with a commitment to transparent, compassionate service. When you’re ready to explore your options, we’re here to provide a fair cash offer and a stress-free closing process tailored to your timeline.
Frequently Asked Questions About Inherited Property Taxes in New Hampshire
Do I have to pay taxes immediately when I inherit a house in New Hampshire?
No. Inheriting property doesn’t trigger an immediate tax bill. New Hampshire doesn’t impose a state inheritance tax, and the federal government only levies estate taxes on estates exceeding $15 million (2026 threshold). You’ll only face capital gains taxes if you sell the property for more than its stepped-up basis value.
What is the stepped-up basis, and how does it benefit me?
The stepped-up basis resets your inherited property’s cost basis to its fair market value on the date of inheritance. This means if you sell immediately, you likely owe zero capital gains taxes. For example, if you inherit a $400,000 home and sell it for $400,000, your taxable gain is $0, regardless of what the original owner paid decades ago.
How long do I have to sell an inherited property to avoid capital gains taxes?
There’s no specific deadline, but timing matters. You avoid capital gains taxes on the inherited value, not future appreciation. The longer you hold the property, the more it may appreciate, and that growth becomes taxable. In New Hampshire’s active real estate market, selling sooner often means keeping more of your inheritance. If you’re in the Keene or Exeter area, we can provide a fast cash offer.
Can I sell an inherited house in New Hampshire if it needs major repairs?
Absolutely. Cash home buying companies like New England Home Buyers purchase properties in any condition. You won’t need to invest in repairs, cleaning, or updates before selling. We buy houses as-is throughout New Hampshire, handling all renovations after closing so you can move forward without additional expenses or delays.
What if multiple family members inherited the property together?
Joint inheritance is common, and you can still sell quickly. All co-heirs must agree to the sale, and capital gains taxes split proportionally based on each person’s ownership stake. A cash sale often simplifies this process by providing a clear, fast timeline that works for everyone involved, no extended negotiations or market uncertainty to manage.
