Salem's Preliminary Values Put Homes Well Ahead of Commercial Property. Who Picks Up the Difference?

This fall, the annual tax figure on a Salem, New Hampshire listing comes from two inputs that are both about to change. The first is an assessment that reflects the market as of April 1, 2021. The second is the 2025 rate of $18.16 per $1,000. Salem's December 2026 bills will use new values set as of April 1, 2026, and a new rate that the New Hampshire Department of Revenue Administration sets late in the fall.

On the preliminary numbers, homes and condos rose roughly twice as fast as commercial buildings, and one tax rate applies to all of them. Salem will collect the total its budgets require either way. What the revaluation changes is how that total is divided, and the preliminary averages point toward residential property carrying more of it.

Five Years of Market Movement, Measured All at Once

Salem last revalued townwide in 2021. Its contracted firm, Vision Government Solutions, built the 2026 values from a study of local sales between April 2024 and April 2026. The firm also used income and expense data from commercial owners and current construction costs. Vision presented its preliminary average changes to the Town Council on August 17, 2026.

The Town has stressed that these figures are averages within each category. They are not flat increases applied to every parcel. An individual change depends on size, age, condition, location, use, and any permitted work done since 2021.

Why the Rate Falls and the Burden Still Shifts

Vision's slide on taxes gave the formula plainly. The tax rate equals budgets, minus income from other sources, divided by the total assessed value of the town. The revaluation leaves the numerator alone and makes the denominator much larger, so the rate goes down. The same slide warned owners in capital letters not to apply the existing rate to their new values.

How much of the total each parcel carries is addressed directly in Salem's revaluation explainer.

"Properties that increase at a greater rate than the overall tax base may experience a greater share of the tax burden, while properties that increase at a lower rate may experience a smaller share."

In the preliminary figures, commercial, industrial, and large apartment properties all came in well under the residential averages. As a matter of arithmetic, that pulls the townwide average increase below the 49 to 53 percent range for homes and condos, though by how much depends on how much of Salem's base those categories make up. If final values follow the same pattern, a home that rose by about the single-family average would be rising faster than the base as a whole, and by the Town's own description it would carry a larger share of the levy. The Town says the effect on any individual bill can't be determined until final values, total valuation, and the new rate are known.

The Gap Got a Full Hearing on August 17

According to the Town Council minutes, Councilor Jeffrey Hatch said residents would find the lower commercial figure harder to understand than the residential one. Steve Whalen of Vision answered that home prices move on buyer preferences, while commercial rents change more slowly. He gave the example of a rent rising from $10 to $12 a square foot, which is a smaller percentage gain. Councilor Stacey asked whether an apartment building that sold for $134 million, well above its assessment, had been factored in. Whalen said all commercial sales had been reviewed.

During public comment, a resident argued that the revaluation shifted taxes toward residential property more than was fair. He cited county-level trends and recent commercial sales that exceeded their assessed values. Councilor Lisa Withrow noted that the commercial figure was an average and said specific properties raised by Councilor Stacey would be looked into. Whalen added that hotel sale prices include personal property that is not part of the assessed value.

Withrow also pointed out that many luxury apartments were unfinished during the 2021 revaluation and were valued lower at the time. Whalen said units that were still incomplete on April 1, 2026, are valued by their percentage of completion as of that date. That detail matters because a large part of Salem's commercial base was still under construction the last time anyone measured it.

Tuscan Village Sits in the Denominator

Most of that growth is at Tuscan Village. The Eagle-Tribune reported that the 173-acre development off Route 28 generated nearly $9.9 million in property taxes in 2025, which was 7.3 percent of Salem's total levy. Town officials put the savings at $675 a year for the average homeowner. The paper reported that the assessed value of the Tuscan Village properties grew from about $31 million in 2021 to more than $463 million in 2025. Its largest single contributor is the 281-unit Hanover apartment building at 3 Artisan Drive, which pays around $1.18 million a year.

The same report helps explain why homeowners' expectations and their bills have drifted apart. Salem's rate dropped sharply after the 2021 revaluation and then rose $2.18 to reach $18.16 in 2025. Councilor D.J. Bettencourt told the paper that Tuscan's revenue "has lagged far behind the spending" in areas the council does not control. Town Manager Joe Devine said the project is about two-thirds complete and added, "Tuscan is not finished, I think we are going to see good growth there."

New commercial and mixed-use construction can slow the growth of homeowners' taxes. A revaluation in which homes outpace commercial property pulls in the other direction. In Salem's 2026 cycle, both act on the same December bill.

Where This Shows Up in a Winter Transaction

For a buyer comparing Salem with nearby towns, any tax figure on a current listing reflects the old system. Multiplying a new assessment by $18.16 overstates the bill, because the rate will drop. Leaving the old figure in place may understate it for homes whose values rose faster than the townwide base. The honest answer is that the 2026 carrying cost of a Salem home will not be known until the DRA sets the rate. As of the Town's October 6 update, values were still being finalized after the informal hearings and no mailing date had been set for the December bills.

Here is the calendar that matters for anyone under agreement this season:

1. September 16, 2026. Preliminary value letters were mailed.
2. September 30, 2026. This was the deadline to book an informal hearing with Vision, and it has passed.
3. Late fall 2026. The DRA sets the new rate. Salem's 2025 rate was set on October 24, 2025.
4. December 2026. The final bill using new values goes out. Vision's presentation says formal appeals and applications for any exemptions or credits come after that bill.
5. March 1, 2027. The Town's FAQ sets the abatement deadline at March 1 of the year after the fall tax bill, which makes this the date for a bill issued in 2026.

One detail can affect buyers and sellers differently. Salem's assessing FAQ says an abatement applicant must have been the owner of record on April 1 of the year being abated. For a home that changes hands after April 1, 2026, the person who owned it on that date is not necessarily the person who will pay part of the December bill, and how that plays out in a given sale is a question for the parties' attorneys. The Town's abatement application also says taxes should be paid as assessed while an application is pending. This is general information, not legal or tax advice. Anyone weighing an abatement or a closing adjustment should confirm the details with an attorney or tax professional.

Questions Salem Owners Are Asking

My assessment went up about 50 percent. Will my bill go up about 50 percent? No. The Town says plainly that an increase in assessed value does not mean the bill rises by the same percentage. Your bill depends on how your change compares with the townwide base.

Does the revaluation raise the total amount Salem collects? No. Vision told the Council that the total to be collected comes from budgets approved by voters, and the revaluation does not change it.

Is an informal hearing still possible? The booking deadline was September 30, 2026. After the December bill, the formal route is the abatement process under RSA 76:16, through the Town's application.

If you're pricing a Salem home or comparing one against a listing in another town before the new rate is set, Kimberly Zecher can help you account for the revaluation in your numbers, so your list price or offer reflects what the house will actually cost to carry. Let's Connect.