Key Tax Facts: New Hampshire
- No individual income tax on wages, retirement, or investment income
- Interest and Dividend Tax eliminated starting January 1, 2025
- No statewide sales tax
- No estate or inheritance tax
Estimate Your 2026 Federal Income Tax
New Hampshire State Income Tax Overview
New Hampshire has no state income tax on wages, salaries, retirement income, or investment income. For years it was the exception among no-income-tax states because it taxed interest and dividend income, but that Interest & Dividends Tax was fully repealed effective January 1, 2025 - so New Hampshire now imposes no broad-based individual income tax of any kind. It is also one of the few states with no general sales tax, making it the only state with neither an individual income tax nor a sales tax at the state or local level. New Hampshire funds its government differently from most no-tax states: it relies on some of the highest property taxes in the nation, along with a Meals & Rentals Tax (currently 8.5% on prepared food, restaurant meals, and lodging), a Real Estate Transfer Tax, and business taxes such as the Business Profits Tax and Business Enterprise Tax. So while your paycheck and your shopping are untaxed by the state, homeowners shoulder a comparatively heavy property-tax load. New Hampshire has no state estate or inheritance tax. For a resident earning $100,000, the state income tax bill is $0, and - unlike Tennessee or Washington - there is no sales tax to erode that advantage, though high property taxes are the trade-off. Federal income tax still applies to all taxable income using the same brackets that apply nationwide.
What Is Different About New Hampshire for Taxpayers
Deductions and exemptions
New Hampshire has no tax on wages or salaries and never has. Its 3% tax on interest and dividends was repealed effective January 1, 2025, so for tax year 2025 the state taxes no personal income at all and most residents file no state return.
Credits worth knowing
There are no personal income tax credits. New Hampshire also has no general sales tax; it relies on property taxes, which are among the highest in the country, a rooms and meals tax, and business taxes.
Retirement, capital gains, and other income
Pensions, Social Security, 401(k) and IRA withdrawals, capital gains, and, from 2025, interest and dividends are all untaxed by the state. Residents who work in Massachusetts or Vermont still owe those states' income taxes on wages earned there.
Rules summarized from the New Hampshire Department of Revenue Administration guidance for tax year 2026. Amounts that index annually are described in general terms; confirm the current figure on the official form instructions.
New Hampshire Has No State Income Tax
New Hampshire has no individual income tax. Its former tax on interest and dividends was fully repealed effective January 1, 2025.
As a New Hampshire resident, your state income tax is $0. The calculator above estimates your federal income tax, which applies to all U.S. residents regardless of state.
Where New Hampshire Stands Among the 50 States
New Hampshire is one of 9 states with no tax on wage income (Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming). Of the other 41 states, 14 use a flat rate and 27 use graduated brackets, with a median top rate of 5.2%.
On sales tax the picture is similar: New Hampshire's combined state and average local rate of 0% ranks #49 of 50, against a national median of 7.00%. New Hampshire manages to keep both income and sales taxes low, which usually means heavier reliance on property tax, severance tax, or tourism revenue.
New Hampshire State Tax at Five Income Levels (2026, single filer)
| Taxable income | New Hampshire tax | Effective rate | Marginal rate |
|---|---|---|---|
| $40,000 | $0 | 0.00% | 0% |
| $65,000 | $0 | 0.00% | 0% |
| $100,000 | $0 | 0.00% | 0% |
| $150,000 | $0 | 0.00% | 0% |
| $250,000 | $0 | 0.00% | 0% |
Brackets applied directly to the taxable-income figure shown, before New Hampshire-specific deductions, exemptions, or credits. Federal tax is separate and comes on top of every row.
New Hampshire vs. Its Neighbors on $75,000 of Taxable Income
A New Hampshire resident with $75,000 of taxable income pays about $0 in state income tax. Of New Hampshire's 3 neighboring states, 0 would tax that income less and 3 would tax it more -- New Hampshire is the cheapest state in its region on this measure.
| State | Structure | Tax on $75,000 | Top rate | Sales tax |
|---|---|---|---|---|
| New Hampshire (you) | No income tax | $0 | None | 0% |
| Vermont | Rate to 8.75% | $3,393 | 8.75% | 6.24% |
| Massachusetts | Rate to 9% | $3,750 | 9% | 6.25% |
| Maine | Rate to 7.15% | $4,854 | 7.15% | 5.5% |
Frequently Asked Questions -- New Hampshire Income Tax
Does New Hampshire have a state income tax?
No. New Hampshire does not impose a broad-based state income tax on wages, salaries, or most personal income. New Hampshire has no individual income tax. Its former tax on interest and dividends was fully repealed effective January 1, 2025.
Do I still owe federal income tax as a New Hampshire resident?
Yes. Federal income tax applies to all U.S. residents regardless of state. New Hampshire residents pay the same federal tax brackets as everyone else -- only your state income tax is $0.
What taxes do New Hampshire residents pay instead of income tax?
New Hampshire has no state income tax on wages, salaries, retirement income, or investment income. For years it was the exception among no-income-tax states because it taxed interest and dividend income, but that Interest & Dividends Tax was fully repealed effective January 1, 2025 - so New Hampshire now imposes no broad-based individual income tax...
How much does living in New Hampshire save compared with neighboring states?
On $75,000 of taxable income a New Hampshire resident pays $0 in state income tax, while Vermont would collect $3,393, Massachusetts would collect $3,750, Maine would collect $4,854. Sales tax in New Hampshire is 0%, ranked #49 of 50.
Do I need to file a New Hampshire state tax return?
New Hampshire does not require a personal income tax return for most residents. You must still file a federal return with the IRS. Check the New Hampshire Department of Revenue Administration for any state-specific obligations that may apply.
What is the sales tax rate in New Hampshire?
New Hampshire's combined state and average local sales tax rate is 0%. States without an income tax typically lean more on sales, excise, or property taxes to fund government services -- use our sales tax calculator to see how that adds up.
Understanding Your New Hampshire Tax Estimate
Your results combine two separate bills: federal tax owed to the IRS, and New Hampshire state tax -- which for residents here is $0. New Hampshire has no state filing requirement for personal income; you only file the federal return. For the mechanics of how bracket math actually works -- why your effective rate is almost always lower than your top bracket -- see our marginal vs. effective tax rate guide.
Combined Sales + Income Tax Picture
New Hampshire's combined state-plus-average-local sales tax rate is 0%. States without an income tax typically lean more heavily on sales, excise, or property taxes to fund government services -- worth factoring in alongside the $0 income tax figure above. Use our sales tax calculator to see how that adds up on a purchase.
Disclaimer: Estimates for educational purposes only. State tax results are approximations based on published bracket data and do not account for all deductions, credits, exemptions, local taxes, or individual situations. Not tax, legal, or financial advice. Consult the New Hampshire Department of Revenue Administration or a qualified tax professional for guidance specific to your situation.