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I am sending a transaction that occasionally gets dropped. Currently if there is no data returned from getTransaction after 60 seconds I just assume it's been dropped. In some rare cases this doesn't work and the transaction is successful but only returns data after 60-90 seconds.

Is there a better way to determine when a transaction has been dropped?

Will checking if the blockhash has expired help or is that just used for sending the transaction?

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You answered your own question - a transaction can still potentially be included all the way until it's blockhash expires. If you check if your transaction was included until then (and an optional few extra seconds of buffer time depending on how quickly your RPC indexes new transactions) you should be fine.

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