The Upper Valley straddles both states. Here’s how to decide which side of the river is right for your wallet and lifestyle.
One of the most common questions I get is: "Should I buy in VT or NH?"In the Upper Valley, you can drive between the two in 5 minutes, but the ownership experience can be quite different. Let's break down the key differences for second-home buyers.
| Factor | Vermont | New Hampshire |
|---|---|---|
| Income Tax | Progressive State Income Tax | No Earned Income Tax (Dividends/Interest taxed) |
| Sales Tax | 6% State Sales Tax | 0% Sales Tax |
| Property Tax | Generally Higher (Education Funding) | High (Primary revenue source for towns) |
| Vibe / Aesthetics | Pastoral, open fields, billboards banned, "Cozy" | Wooded, rugged, "Live Free or Die", more commercial strips |
| Rentals | Strict environmental regs (Act 250), town-by-town STR rules | Generally more lenient, libertarian approach to property rights |
Vermont (Norwich, Hartford, Woodstock): Tends to feel more "curated" and pastoral. You'll see open farmland, historic village centers, and strict preservation of views. It attracts buyers looking for that quintessential New England charm and a slightly slower pace.
New Hampshire (Hanover, Lebanon, Lyme): Tends to feel more functional and wooded. Hanover is bustling and cosmopolitan thanks to Dartmouth. Lebanon is the commercial hub with big-box stores. NH buyers often prioritize convenience, tax benefits, and privacy in the woods.
It’s often said: "You live in New Hampshire to save money, and vacation in Vermont to spend it."
If this is a primary residence, NH's lack of income tax is a massive draw. For a second home, that benefit is less relevant unless you plan to change your domicile. Actually, property taxes in NH can sometimes be higher than VT because NH towns rely almost exclusively on property tax for revenue, whereas VT has a broader tax base.