Thinking about buying near Dartmouth and wondering which side of the Connecticut River fits you best? Choosing between Hanover in New Hampshire and nearby Vermont towns like Norwich can change your taxes, daily routine, and closing process in meaningful ways. You want clarity so you can make a confident decision. This guide breaks down what truly matters, shows you what to verify for each property, and gives you a checklist you can use right away. Let’s dive in.
NH vs VT at a glance
- Taxes: New Hampshire does not have a broad-based state income tax or a statewide sales tax. Vermont has a state income tax and a statewide sales tax. Property taxes vary by town in both states, so compare actual tax bills for the homes you are considering.
- Schools: District boundaries matter. Some Vermont towns have agreements that affect access to Hanover schools, but eligibility and terms vary by grade and district. Always verify with the districts directly.
- Municipal services: Water, sewer, road maintenance, and trash services differ town by town. Know whether a home is on public utilities or private well and septic.
- Market and lifestyle: Hanover offers a compact, walkable center close to Dartmouth. Vermont towns nearby often offer larger lots and a more rural feel, with a commute across a river crossing.
- Regulation and closing: Closing customs, recording fees, and permitting rules vary by state. Vermont’s Act 250 applies to certain large developments; normal single-family projects are usually municipal-level, but confirm your plans in advance.
Taxes and recurring costs
Income and sales taxes
If you live in New Hampshire, you will not pay a broad-based state income tax on wages and there is no statewide sales tax. If you live in Vermont, you will pay a state income tax and a statewide sales tax may apply to purchases, with possible local options in some towns. If you live in one state and work in the other, your situation can be more complex. Consult the state tax agencies or a cross-border CPA for questions about withholding and residency.
Property taxes vary by town
Property tax outcomes depend on municipal budgets, school district funding, and assessment practices. Do not assume one side of the river is always lower. Ask for the recent property tax bill and the assessment history for any home you are serious about. Confirm assessment timing, homestead or exemption rules, and any credits with the town assessor or lister. Many towns offer exemptions or credits for eligible residents, but rules and applications vary.
Closing and transfer costs
Recording fees, transfer taxes, and documentary stamps differ by state, county, and sale price. Get a closing cost estimate from your lender and a local title or closing attorney early. This helps you compare apples to apples if you are looking at homes on both sides of the river.
Schools and municipal services
School districts and cross-state agreements
School quality and access shape many family decisions. In the Dartmouth area, some Vermont towns have long-standing interlocal or tuition agreements that affect access to Hanover schools. The details can change by district, grade level, and governance. If school access is a priority, confirm the exact district assignment for the property and speak directly with the relevant district offices about sending or receiving arrangements, tuition responsibilities, and any planned changes.
Water, sewer, roads, and town services
Some properties near town centers connect to public water and sewer. Many others rely on private wells and septic systems. Ask whether a specific home is on town utilities or private systems, and request recent septic pump and inspection records and any well logs. Also confirm town services like road plowing, winter access, snow storage, and trash or recycling. These basics affect both convenience and ongoing costs.
Market, commute, and lifestyle
Inventory and pricing patterns
Dartmouth College and DHMC create steady housing demand. Hanover often has limited inventory near the town center, while nearby Vermont towns may offer larger lots, a quieter setting, and different price points. Market conditions change quickly, so rely on current local market reports for pricing, days on market, and inventory trends when you are ready to act.
Commute and access to campus and DHMC
Your daily routine may hinge on river crossings, parking availability, and seasonal road conditions. If you are tied to campus or the medical center, test the commute during peak times and winter conditions. Check parking rules and transit options that matter for your schedule. A slightly longer commute might be an easy trade for more land or different neighborhood character.
Neighborhood character and short-term rental rules
Hanover offers a compact, village-like core with shops and walkable amenities. Many nearby Vermont towns lean rural with larger parcels, agricultural land, and different zoning. If you plan to operate a short-term rental or add an accessory dwelling unit, ask the town clerk or planning office for current ordinances and permitting requirements before you buy.
Transaction, legal, and permitting differences
Closing customs, title, and recording
In this region, attorneys and title companies commonly handle closings. You should expect standard title insurance, and survey needs will vary by lender and property type. Recording fees and deed requirements are set by each county or registry, so confirm line items with your closing provider. If you are comparing NH and VT homes, review both sample closing disclosures to understand fee differences.
Permitting and large development rules
Vermont’s Act 250 is a state-level land use law that applies to certain large developments and subdivisions. Most routine single-family renovations are handled at the municipal level in both states, but you should always verify the rules that apply to your specific project. If you anticipate significant additions, a subdivision, or development, consult the relevant state and municipal offices early.
Insurance and environmental risk
Floodplain exposure and flood insurance
Homes near the Connecticut River or its tributaries may sit within FEMA-designated flood zones. If a mortgaged property is in a Special Flood Hazard Area, your lender will typically require flood insurance. Even if it is not required, consider the risk and ask the seller or agent about flood history for the parcel. Review FEMA maps and talk with your insurer about coverage and cost.
Septic systems, wells, and utilities
If a property has a septic system and well, request inspection reports, pump records, and well data. Some towns have septic inspection or transfer requirements. Heating fuel can also vary by location, from fuel oil and propane to natural gas or electric heat pumps. Ask for recent utility bills to estimate operating costs.
Easements, private roads, and conserved land
Easements for access, driveways, or conservation frequently appear on Upper Valley properties. Confirm any right-of-way agreements and who is responsible for private road maintenance and snow plowing. If conserved land is involved, understand the restrictions and any trail access provisions that could affect use and resale.
Property-level comparison checklist
Use this checklist to compare homes on both sides of the river:
- Confirm the exact municipal jurisdiction and school district for the parcel.
- Request the most recent property tax bill and the assessment history.
- Verify water and sewer status: municipal connections or well and septic. Get recent inspection logs.
- Check FEMA flood zone status and ask about any flood history or insurance claims.
- Identify easements, conservation restrictions, and any shared road agreements in writing.
- Ask for a comparative market analysis and current inventory insights from a local agent.
- Confirm driveway access, winter plowing, and typical commute time to Dartmouth and DHMC.
- Obtain closing cost estimates for both NH and VT from your lender and a local closing attorney.
- Ask about short-term rental rules if you may rent the property.
- Request relevant zoning bylaws, ADU rules, and planning maps if you plan renovations or additions.
- If you have cross-border income or remote-work questions, consult a CPA experienced with NH/VT residency.
How to choose the right side of the river
Start with your non-negotiables. If income and sales tax exposure matter most, note the clear difference between NH and VT and then verify property taxes for the specific homes on your shortlist. If school access is a priority, confirm district assignments and any cross-district agreements in writing. If you value land, privacy, and a quiet setting, expand your search to the Vermont side while testing the commute and winter access. If a walkable, village-like lifestyle is essential, focus on Hanover and nearby neighborhoods.
The best choice is the one that aligns with how you live and what you plan to invest in your home. Use the checklist above to compare properties side by side. Then ask for local, property-level documents to confirm what matters most to you before you write an offer.
Ready to compare specific NH and VT homes with clarity and confidence? Connect with a local strategist who understands Hanover, Norwich, and the Upper Valley at a detailed, property-by-property level. Andy Clouse provides data-driven guidance, coordinated inspections, and cross-state closing support so you can choose with confidence.
FAQs
Will living in Vermont versus New Hampshire change my income tax?
- Yes. Vermont imposes a state income tax, while New Hampshire does not tax wage income. For cross-border work or remote scenarios, consult the state tax agencies or a CPA.
Do Norwich, VT students attend Hanover, NH schools?
- Some Vermont towns have interlocal or tuition arrangements that affect access to Hanover schools. Terms vary by district and grade, so verify details with the districts directly.
Are property taxes lower on one side of the river?
- Not necessarily. Compare recent tax bills for specific properties and review assessments and school budgets in each town to understand the true annual cost.
Are there special permitting hurdles if I buy in Vermont?
- Vermont’s Act 250 applies to certain large developments and subdivisions. Most single-family projects are municipal, but always confirm requirements for your plans in advance.
Will I need flood insurance near the Connecticut River?
- If a mortgaged home is in a FEMA Special Flood Hazard Area, lenders typically require flood insurance. Even outside mapped zones, review flood history and consult your insurer.
