Question 1

Does New Hampshire have a state income tax in 2026?

Accepted Answer

No. As of January 1, 2025, New Hampshire has zero state income tax. The Interest and Dividends (I&D) tax, which previously taxed interest and dividend income at 5%, was fully phased out. It dropped from 5% (pre-2023) to 4% (2023), then 3% (2024), and reached 0% in 2025. New Hampshire now joins the group of 9 US states with no state income tax on wages or investment income.

Question 2

What taxes does New Hampshire still have?

Accepted Answer

While NH has no income tax and no sales tax, it has the second-highest property tax rate in the US at approximately 2.09% effective rate on assessed value. The average NH homeowner pays roughly $6,500–$8,000 per year in property taxes depending on the municipality. NH also has various business taxes, a meals and rooms tax (8.5%), a timber tax, and a telecommunications tax. The overall tax burden is moderate to high for homeowners, but low for renters.

Question 3

How much did NH residents save from the Interest and Dividends tax repeal?

Accepted Answer

Investors who previously paid the 5% I&D tax saw significant savings. Someone earning $50,000 in dividends and interest saved $2,500 per year under the old 5% rate. The phase-out saved progressively more each year: $500 saved when rate dropped from 5% to 4%, another $500 at 3%, and the final $1,500 when it went to 0%. For retirees living off investment income, the full repeal can represent thousands of dollars in annual tax savings.

Question 4

How does New Hampshire compare to neighboring states for taxes?

Accepted Answer

NH has no income tax and no sales tax, making it tax-friendly for wage earners and shoppers. However, high property taxes often negate those savings for homeowners. Maine has a top income tax rate of 7.15% but lower property taxes (~1.09%). Vermont taxes income up to 8.75% with lower property rates. Massachusetts charges a flat 5% income tax. For a homeowner earning $100,000 with a $400,000 home, NH's total state+local burden is often similar to Massachusetts due to property taxes.

Question 5

Is New Hampshire a good state to move to for tax purposes?

Accepted Answer

It depends on your situation. NH is excellent for high earners who rent — zero income tax and zero sales tax maximizes take-home pay. It's also ideal for retirees with large investment portfolios (now that the I&D tax is gone). However, homeowners face very high property taxes that can offset the income tax savings. A person earning $150,000 saves roughly $5,000–$8,000 versus Massachusetts in income taxes, but may pay $3,000–$5,000 more in property taxes versus MA, making the net advantage modest.

New Hampshire Tax Calculator 2026 — No Income Tax, High Property Tax

NH Tax Summary 2026

New Hampshire Tax Overview 2026

The Catch: Property Taxes

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NH vs Neighboring States Total Burden

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