NH current use tax rates: what woodland owners pay

Last updated 2026-08-14

What is New Hampshire's current use program, exactly?

Current use is New Hampshire's version of a use-value assessment law. Instead of taxing your woodland at what it would sell for on the open market, the town assesses it based on what it's worth for its current use, growing trees, growing hay, sitting as wetland. That's usually a fraction of market value, sometimes a small fraction if you're near a lake or a ski town where land prices have gone insane. The program comes from RSA 79-A, New Hampshire's Current Use statute ^[1]. The law states its purpose plainly: to encourage "the preservation of open space" by taxing land "on the basis of its current use rather than at its highest and best use" ^[1]. That's the whole idea. You give up the right to be taxed like a subdivision waiting to happen, and in exchange your assessment drops, often by 80% or more depending on your town's market values. The state's Current Use Board, part of the Department of Revenue Administration, sets statewide range values every year. Towns pick a number within that range for each land category. That's why your neighbor's rate 20 miles away can look different from yours even though you're both enrolled in the same statewide program.

What are the current use tax rates in NH for 2025?

Unproductive/wetland	$25 (statutory floor)
Forest land, lower grade	roughly $25 to $100
Forest land, better grade	roughly $100 to $250
Forest land, top grade	up to about $443
Farm/agricultural land	separate range, often higher than forest	Those numbers are the Board's statewide range, not what your town will actually use. Each town's selectmen or assessors pick a specific figure inside that band, and it can change year to year as the Board revises ranges. You need to confirm your town's actual current use rate with your local assessor, since two abutting towns can legally land in different spots on the range [1] [2]. Compare that to full market value assessment. If your town's equalized market rate for rural land runs $3,000 to $8,000 an acre (common in a lot of NH's Lakes Region and southern tier), the gap between current use and full assessment is enormous. That's the entire reason the program exists.

For tax year 2025, the Current Use Board's assessment range for unimproved forest land runs from about $25 per acre (lowest grade, farthest from any market pressure) up to roughly $443 per acre for the best-grade forest land in the highest-value range set by the Board ^[2]. Wetlands and unproductive land sit at the bottom of the range, often assessed at $25 an acre statewide minimum set by statute ^[1]. Actual per-acre value in your town depends on soil class (the state uses site-class categories tied to timber productivity) and which end of the range your town's assessors select. Here's a rough sense of the spread, based on the Board's published minimum and maximum current use ranges for 2025 ^[2]: | Land category | Approx. 2025 range (per acre) |

How much can current use actually save a woodland owner in NH?

There's no single savings number, because it depends on your town's tax rate and your land's market value, both of which vary a lot across NH's 234 towns and cities. A woodlot assessed at $150 an acre under current use instead of $4,000 an acre at market value is having roughly 96% of its assessed value removed, before the tax rate is even applied. The honest way to estimate your savings: take your town's current tax rate (expressed per $1,000 of assessed value), multiply by the market-value assessment your land currently carries, then do the same math using the current use per-acre value for your land type. The difference is your rough annual savings. Don't guess at the town rate. It changes yearly and your town clerk or assessor publishes it. The New Hampshire Department of Revenue Administration keeps municipal tax rate data publicly available ^[3], and your county registry of deeds or town assessing office can tell you the current use category your specific parcel would fall into. Nobody but your assessor can give you a number you should actually plan around.

Who qualifies for current use in NH? What's the minimum acreage?

You need at least 10 contiguous acres of qualifying open space land to enroll under RSA 79-A ^[1]. That's the standard threshold, though there are carve-outs. Land under an easement, or unproductive wetland, and certain other categories can qualify with different rules, and some parcels under 10 acres can still qualify if part of a larger contiguous holding under common ownership. The land can't be actively used for anything that conflicts with open space status, meaning no house lots carved out, no commercial development footprint sitting on the enrolled acreage. A house and its curtilage (typically assessed separately, often around 2 acres depending on town practice) stays out of current use and gets taxed at full value, which is normal and expected. The rest of your acreage, the actual working woods, is what enrolls. Forest land enrolled in current use with 25 acres or more also has to have (or get) a forest management plan meeting state requirements, and often needs periodic recertification. This is where a licensed forester's documentation matters. NH doesn't require you to personally write the plan, but the plan itself generally needs professional forestry input to satisfy the statute's stewardship intent.

What is the Forest Management Bureau and what does it do?

New Hampshire doesn't run a single agency called the "Forest Management Bureau" as such, but the phrase points to the state's Division of Forests and Lands, part of the NH Department of Natural and Cultural Resources. This division administers state forestry programs, oversees the state's licensed forester program, and coordinates with the Current Use Board on stewardship standards tied to enrollment ^[4]. If you're searching for "forest management bureau" because you got a letter referencing forestry oversight on your current use application, it's almost certainly this division, or your county's UNH Cooperative Extension forester, who often help landowners connect with a licensed professional ^[5]. The division doesn't write your management plan for you, but it maintains the list of licensed foresters and can point you toward one serving your county. For general reference on what a forest management plan needs to include and why states require one for tax programs, the US Forest Service's private land resources give a solid national overview of what these plans typically cover: growth objectives, harvest scheduling, wildlife and water considerations, and revisit intervals.

What is forest management, in the context of current use?

Forest management, for current use purposes, means an active, documented plan for how your woods gets tended over time. This is not the same as "let it grow and don't touch it." A qualifying plan typically identifies stand types across your acreage, sets objectives (timber, wildlife habitat, water quality, recreation), and lays out a rough schedule for any harvesting, thinning, or regeneration work over a 10-year horizon or so. States that require a management plan for use-value tax programs generally want to see the land is being stewarded, more than sitting idle while you collect a tax break. NH's statute frames the whole current use system around that idea, tying lower assessment to genuine open space and forestry stewardship rather than passive land banking ^[1]. If you're enrolling 25+ forested acres, expect the plan to require a licensed forester's signature. That's a real cost, often several hundred to over a thousand dollars depending on acreage and complexity, and it's worth budgeting for before you file anything. If you want a clear map of what documentation the town assessor and forester will expect before you sign an engagement letter, our forest management guide breaks down the typical plan components county assessors look for.

What triggers the Land Use Change Tax, and how much is it?

New Hampshire's Land Use Change Tax (LUCT) is the penalty for taking enrolled land out of qualifying use, most commonly by developing it or subdividing it for non-open-space purposes. Under RSA 79-A:7, the tax equals 10% of the full and true (market) value of the land at the time of the change, not 10% of the current use value ^[1]. That distinction matters. If your current use value is $150 an acre but the land's market value at the time you pull it out is $5,000 an acre, the LUCT bill is based on the $5,000 figure, and it's owed on the acreage that changed use, not your whole parcel necessarily. Selling the land to someone who continues qualifying use, like another landowner who keeps it enrolled, doesn't automatically trigger the tax. It's the change in use that triggers it, not the sale itself. This is genuinely the part people get burned on. Owners forget the LUCT exists, sell a corner lot to a builder, and get a tax bill years later they didn't budget for. If you're weighing whether to enroll acreage you might want to develop or sell for development within the next decade, run the LUCT math against your expected timeline before you sign the application. Our rollback-and-penalties coverage (linked here as forest mgt) walks through how other states structure similar recapture penalties, which helps frame what NH is doing relative to its neighbors.

How do I enroll? What forms and steps are involved?

You file Form CU-12 (the Current Use application) with your town's board of selectmen or assessors, generally by April 15 for that tax year, though check your town's specific deadline since municipal administrative timing can shift slightly ^[1]. You'll need a tax map reference, acreage breakdown by land category (forest, farm, wetland, unproductive), and for larger forested parcels, forester documentation supporting your management plan. The application gets recorded at the county registry of deeds, since current use status runs with the land and binds future owners until they file to remove it (triggering LUCT if applicable). That recording step is often the part people skip or delay, and an unrecorded application can create problems down the line if the land changes hands. Expect the town assessor to physically or aerially verify your land use classification, sometimes years after your initial filing. Keeping your own documentation (forester's plan, any harvest records, photos of stand conditions) makes recertification and any future disputes far less painful. If you're assembling that packet yourself and want a structured starting point before you approach a licensed forester, our $149 one-time Current-Use Enrollment & Compliance Kit organizes the paperwork sequence so your forester engagement starts with the right property data already in hand, not from scratch.

Do you have to pay taxes on timber sales in New Hampshire?

Yes, but not the way most people expect. New Hampshire has no state income tax on wages or typical capital gains for individuals, but timber income is still subject to federal income tax, and NH imposes its own separate timber yield tax at the local level. Under RSA 79:2 and related provisions, NH towns assess a yield tax of 10% of the stumpage value of timber cut and sold, collected at the town level, not the state income tax level . This applies whether or not your land is enrolled in current use. You'll need to file an Intent to Cut form with the town before harvesting, and a Report of Cut after the harvest closes out, both are standard NH forestry paperwork independent of the current use program itself. So the answer to "do you pay taxes on timber sales" in NH is: yes, a local 10% yield tax on stumpage value, plus whatever federal tax treatment applies to your specific sale. Current use enrollment doesn't exempt you from the yield tax. It's a separate mechanism entirely.

How are timber sales taxed federally, and how do I report them?

Federally, how timber income gets taxed depends on how you held and sold the timber. If you sold standing timber under a contract (lump-sum or pay-as-cut) and you held it as an investment or incidental to your personal use of the land (not as a timber business), the sale is generally treated as a capital gain, reported on Schedule D and Form 8949, using your adjusted basis in the timber to figure gain or loss . The IRS and US Forest Service jointly publish guidance on tax reporting for individual timber sellers, walking through the mechanics of basis, gain calculation, and which forms apply . That kind of annually updated guidance is the most reliable source, since tax code details (like Section 631(a) or 631(b) treatment for cutting timber) shift with IRS updates. If you're running timber sales as an actual trade or business, income instead flows through Schedule C or as ordinary business income, and different basis and depreciation rules apply. Most woodland owners with 10 to 100 acres selling timber occasionally fall into the investment/capital-gain category, not the active-business category, but this distinction genuinely changes your tax bill and it's worth getting an actual CPA or forestry tax specialist to confirm your situation rather than assuming.

How do I avoid or reduce capital gains tax on a timber sale?

The core lever is your basis. Your basis in the timber is generally a share of what you paid for the land and timber together (or its value when inherited or gifted), allocated specifically to the merchantable timber component using an allocation method the IRS accepts, often based on a timber cruise or appraisal at time of purchase . If you never established a basis when you bought or inherited the land, you may be leaving real deductions on the table, because gain is calculated as sale proceeds minus basis, and a properly documented basis lowers your taxable gain. Section 631(b) treatment, for timber cut and sold under contract where you retain an economic interest, often qualifies for long-term capital gains rates rather than ordinary income rates, which matters a lot given the gap between capital gains brackets and ordinary income brackets. This is a legitimate, IRS-sanctioned distinction, not a loophole, but the paperwork needs to be right at the time of sale, not reconstructed after the fact. There's no universal trick that erases the tax. What real forest tax specialists actually recommend: get a documented timber basis established now (before your next sale) via a qualified appraisal, keep records of any reforestation costs (which can sometimes be deducted or amortized under separate provisions), and talk to a CPA who's actually handled timber sales before filing. If you've never set up a basis for your land, our basis of land explainer walks through how that allocation process typically works and what documentation an appraiser or forester needs to support it.

How does NH current use compare with neighboring states?

Maine, Vermont, and Massachusetts all run similar use-value assessment programs for forestland, but the specifics (minimum acreage, plan requirements, penalty structure) differ enough that comparing rates directly across state lines is misleading. Vermont's Use Value Appraisal program, for instance, requires a state-approved forest management plan for all enrolled forestland regardless of acreage, a stricter standard than NH's approach for smaller parcels. Maine's Tree Growth Tax Law sets per-acre values by forest type and region through its own state board, updated periodically, with its own penalty structure for withdrawal. If you own land near a state border or are comparing where to buy woodland, it's worth checking both states' current per-acre schedules rather than assuming NH's numbers or rules transfer. Our comparisons coverage (linked here under timber management) lays out how several New England current-use style programs stack up on acreage minimums and penalty rates, which is useful if you're deciding between adjoining parcels in different states or trying to understand why your cousin's Vermont woodlot pays a different rate than yours in NH.

What should I actually do next if I'm not enrolled yet?

Start by calling your town assessor's office and asking two things: what current use category your land would fall into, and what the town's current per-acre value is for that category this tax year. That single phone call gets you 80% of the information you need to decide if enrollment is worth pursuing. Then, if you have 25+ forested acres, contact a licensed NH forester (your county UNH Extension office keeps referral lists) to scope out what a management plan costs and covers for your specific acreage. Get that cost estimate before you file anything, since it's a real expense you should weigh against your expected annual tax savings. Finally, if you're assembling the application packet, tax maps, forester documentation, and deed recording steps yourself, doing it once and doing it right avoids the town kicking your application back for missing pieces (which happens often enough that assessors mention it as a common filing problem). This isn't tax or legal advice, and it doesn't replace a licensed forester's engagement where the state requires one. It's a paperwork sequencing problem, and that's specifically what the $149 Current-Use Enrollment & Compliance Kit is built to solve, organizing your parcel data, deadlines, and forester handoff points so nothing gets missed the first time through.

Frequently asked questions

What is the Forest Management Bureau in New Hampshire?

There's no separate agency by that exact name. It refers to New Hampshire's Division of Forests and Lands, under the Department of Natural and Cultural Resources, which oversees state forestry programs and licensed foresters and coordinates with the Current Use Board on stewardship standards tied to enrollment.

What is forest management for current use purposes?

It means an active, documented plan for tending your woods over roughly a 10-year horizon, covering stand conditions, harvest scheduling, and objectives like timber, wildlife, or water quality. For NH parcels of 25+ forested acres, this plan generally needs a licensed forester's involvement to satisfy current use requirements.

How do I report the sale of timber on my tax return?

If you sold standing timber held as an investment, report the sale as a capital gain on Schedule D and Form 8949 using your adjusted basis in the timber. If timber sales are an active business, income instead runs through Schedule C. IRS Publication 544 covers the basic reporting mechanics for sales of this kind.

How do I avoid capital gains tax on a timber sale?

You can't avoid it entirely, but establishing a documented timber basis (through a qualified appraisal or cruise at time of purchase or inheritance) reduces your taxable gain, since gain equals proceeds minus basis. Contract sales retaining an economic interest may also qualify for capital gains rates under Section 631(b) rather than ordinary income treatment.

Do I have to pay taxes on timber sold from my land?

Yes. In New Hampshire, towns collect a 10% yield tax on the stumpage value of harvested timber under RSA 79:2, regardless of current use enrollment. You'll also owe federal tax on the income, typically as a capital gain if the timber was held as an investment rather than an active business.

Do you have to pay taxes on timber sales if the land is in current use?

Yes. Current use lowers your annual property assessment, but it doesn't exempt timber harvests from New Hampshire's local yield tax (10% of stumpage value) or from federal income tax on the sale proceeds. These are separate tax mechanisms that both apply independent of enrollment status.

How are timber sales taxed at the federal level?

It depends on how you held the timber. Sales of timber held as an investment are generally capital gains, reported on Schedule D using your basis in the timber. Sales tied to an active timber business are ordinary income reported on Schedule C, with different depreciation and expense rules applying.

What is the minimum acreage for NH current use enrollment?

Ten contiguous acres of qualifying open space land, under RSA 79-A. Some smaller parcels, like unproductive wetland or land under conservation easement, can qualify under exceptions, and parcels under 10 acres held as part of a larger contiguous holding under common ownership may also qualify.

What is the Land Use Change Tax in New Hampshire?

It's a 10% tax on the full market value (not current use value) of land removed from current use for a disqualifying use, typically development or subdivision. It's assessed under RSA 79-A:7 at the time of the change, and it's the main financial risk of enrolling land you might later develop.

What are New Hampshire's current use tax rates for 2025?

The state's Current Use Board sets a statewide range, roughly $25 per acre for unproductive or low-grade land up to about $443 per acre for top-grade forest land in 2025, with your town choosing a specific value within that range for each land category. Confirm your town's actual figure with the local assessor.

Does current use enrollment exempt me from local timber yield tax?

No. New Hampshire's 10% timber yield tax under RSA 79:2 applies to harvested timber's stumpage value regardless of whether the land is enrolled in current use. Current use only affects your annual land assessment, not the separate tax owed when you actually cut and sell timber.

Can I enroll part of my land in current use and keep the rest at full value?

Yes. Your house and its curtilage (often around 2 acres, depending on town practice) stays assessed at full market value, while the remaining qualifying open space or forest acreage enrolls separately in current use at the lower per-acre rate.

What happens if I sell current use land to someone who keeps it enrolled?

No Land Use Change Tax applies if the new owner continues the qualifying use and the enrollment carries forward. The 10% LUCT only triggers when the land's use actually changes to something disqualifying, like residential development, not simply because ownership transferred.

Sources

1. New Hampshire Dept. of Revenue Administration, Current Use Board range values: Annual statewide current use assessment ranges per acre by land category
2. New Hampshire Dept. of Revenue Administration, Municipal Tax Rates: Published municipal tax rates used to calculate current use savings
3. New Hampshire Division of Forests and Lands: State forestry division administers forestry programs and licensed forester oversight tied to current use
4. USDA Forest Service, Managing Land: Private Land: National overview of what forest management plans typically include
5. IRS, Publication 544 (Sales and Other Dispositions of Assets): Reporting timber sale gains on Schedule D/Form 8949 using adjusted basis
6. NH Department of Revenue Administration: Current use tax rates in NH for various land classifications for 2025
7. NH Department of Revenue Administration: Forms required to enroll in current use, including the Application for Current Use Assessment (Form A-10)
8. NH Division of Forests and Lands: Role and responsibilities of the Forest Management Bureau in overseeing forestry practices related to current use
9. IRS Publication 225, Farmer's Tax Guide: Federal tax treatment of timber sales, including reporting requirements
10. Massachusetts Executive Office of Energy and Environmental Affairs: Comparison of Massachusetts' current use-style forestland tax programs (Chapter 61) with New Hampshire's current use