New Hampshire Income Tax Calculator
A tax that was born in 1923 died on January 1, 2025. The Interest and Dividends Tax — New Hampshire’s last remaining levy on individual income — was phased to zero and formally repealed under House Bill 2. New Hampshire now stands alone as the only state in the country with neither a broad income tax nor a general sales tax. Your wages, dividends, interest, retirement income, and Social Security are all completely untaxed at the state level. The federal government still expects its share — and property taxes in the Granite State are among the highest in the nation — but on income alone, no state comes closer to zero.
Calculate your federal + FICA taxes
With $0 in state income tax, your total tax burden in New Hampshire is federal income tax plus payroll taxes. Enter your income below to see your exact take-home pay.
The 102-Year Tax That New Hampshire Finally Buried
The Interest and Dividends Tax outlasted the invention of television, the moon landing, and the entire history of the internet before being phased to zero in 2025.
The Tradeoff: Zero Income Tax, High Property Tax
New Hampshire’s revenue model is not magic — it is a deliberate structural choice that shifts the tax burden from income to property. With no income tax and no sales tax, municipalities fund public schools, roads, fire departments, and local services almost entirely through property taxes. The result is among the highest effective property tax rates in the country, averaging approximately 2.1% of assessed value. On a $400,000 home in Manchester or Nashua, that is roughly $8,400 per year. In higher-value markets near the Massachusetts border — Bedford, Windham, Londonderry — the same rate on a $550,000 home exceeds $11,500 annually.
Property tax rates vary significantly by town — from roughly 1.4% in some Rockingham County towns to over 3.0% in some rural northern municipalities. Contact your town assessor’s office for the exact rate.
New Hampshire’s Tax Model — What It Means for Every Type of Earner
The Granite State’s “Live Free or Die” motto — adopted officially from a John Stark toast in 1945 — is not just a slogan painted on license plates. It describes a tax philosophy that has resisted every attempt to introduce a broad income or sales tax for more than a century, even as virtually every neighboring state built and expanded such taxes. New Hampshire’s 2025 position is unique not just in degree but in kind: it is the only state in the continental United States that taxes neither earned income nor consumer purchases. Alaska comes close (no income tax, no sales tax at the state level), but Alaskan municipalities can and do levy local sales taxes. New Hampshire prohibits them. The source of revenue that makes this possible is property. New Hampshire municipalities set property tax rates locally, and those rates reflect the full cost of everything the state’s income and sales taxes don’t collect. For a young renter in Manchester or Concord earning $65,000 and paying market rent, this tradeoff is genuinely favorable — they benefit from zero income tax while their landlord absorbs the property tax burden. For a homeowner, the math is more nuanced and income-dependent.
The Massachusetts border creates the most important planning consideration for many New Hampshire residents. The southern tier of New Hampshire — Hillsborough County, Rockingham County, and the communities along I-93 and Route 3 — is deeply economically integrated with Greater Boston. Hundreds of thousands of New Hampshire residents work in Massachusetts, and prior to widespread remote work, the calculation was straightforward: they owed Massachusetts income tax at 5% on wages earned there. Remote work changed the geography but not necessarily the tax obligation. Massachusetts adopted what it calls the “convenience of the employer” rule — under which a New Hampshire resident working remotely for a Massachusetts-based employer may still owe Massachusetts income tax if the remote arrangement serves the employee’s convenience rather than the employer’s necessity. This rule survived challenges and remains in effect. A software engineer in Nashua working fully remotely for a Boston company under an arrangement their manager agreed to “for convenience” may still owe Massachusetts 5% income tax on their full salary — despite never setting foot in Massachusetts. New Hampshire residents with Massachusetts employers should get clarity on their specific situation before assuming the NH advantage applies to their entire income.
For retirees, investors, and high-income remote workers, the 2025 NH landscape is the most favorable in the state’s history. With the I&D Tax gone, a retiree drawing $100,000 from a combination of Social Security, IRA distributions, dividend income, and interest owes exactly $0 in New Hampshire state tax on all of it. An investor with $300,000 in capital gains owes New Hampshire $0. A remote worker earning $250,000 from a New Hampshire-based employer owes New Hampshire $0. Only the federal government taxes these income streams — and only under standard federal rules. The Tax Foundation ranked New Hampshire #3 in its 2026 State Tax Competitiveness Index following the I&D Tax repeal, vaulting it above much larger states. For those whose income is primarily from investments, remote work for NH employers, or business ownership structured to avoid the Business Profits Tax threshold ($92,000 in gross receipts), New Hampshire’s 2025 position is simply unmatched in the eastern United States.
Frequently Asked Questions
No. New Hampshire has no state income tax of any kind as of January 1, 2025. The state never taxed wages, salaries, or self-employment income. The last remaining individual income-related levy — the Interest and Dividends Tax under RSA Chapter 77, which was enacted in 1923 and taxed interest and dividend income at rates up to 5% — was fully repealed effective January 1, 2025, under House Bill 2 (signed by Governor Chris Sununu in 2023). No New Hampshire income tax return is required for 2025.
New Hampshire residents pay federal income tax (10%–37% depending on income) and FICA payroll taxes (6.2% Social Security on wages up to $176,100, plus 1.45% Medicare). At the state level, New Hampshire does not tax wages, interest, dividends, capital gains, retirement income, Social Security, or any other form of individual income. The state generates revenue primarily through property taxes (averaging roughly 2.1% effective rate), a Meals and Rentals Tax of 8.5% on restaurant meals and hotel stays, and business taxes (Business Profits Tax at 7.5% and Business Enterprise Tax at 0.55%).
The Interest and Dividends Tax (I&D Tax) was a New Hampshire state tax on passive investment income — specifically interest earned from savings accounts and bonds, and dividends received from stocks and mutual funds. It was enacted in 1923 and existed for 102 years before being phased out and repealed. The rate was 5% through tax year 2022, reduced to 4% for tax year 2023, then 3% for tax year 2024, and fully repealed for all periods beginning January 1, 2025 under House Bill 2 (Laws of 2023) and RSA Chapter 77.
Potentially yes. Massachusetts taxes income earned from work performed in Massachusetts. New Hampshire residents who physically commute to a Massachusetts workplace owe Massachusetts income tax on those wages at the Massachusetts flat rate of 5%. Remote workers are more complex: Massachusetts has applied a “convenience of the employer” rule under which a New Hampshire resident working remotely for a Massachusetts-based employer may still owe Massachusetts income tax if the remote arrangement is for the employee’s convenience rather than employer necessity. NH residents with Massachusetts employers should consult a tax professional to determine their Massachusetts filing obligations.
Yes, particularly for retirees with investment income. As of 2025, New Hampshire imposes zero state income tax on Social Security benefits, pension income, 401(k) and IRA distributions, capital gains, dividends, and interest — all completely untaxed at the state level. The primary tax consideration for NH retirees is property tax, which averages roughly 2.1% effective rate on market value. A retiree in a paid-off $350,000 New Hampshire home might pay $7,000–$8,000 per year in property tax while owing $0 in state income tax on any amount of retirement or investment income.
New Hampshire’s “Live Free or Die” philosophy reflects a longstanding political culture that prioritizes minimal government intervention. The state relies primarily on property taxes, business taxes, and targeted consumption taxes rather than broad-based income or sales taxes. The repeal of the I&D Tax in 2025 completed the elimination of New Hampshire’s last individual income-related tax, making it the only state in the continental US with neither a broad income tax nor a general sales tax.
Methodology: New Hampshire imposes no individual state income tax as of January 1, 2025, per HB 2 (Laws of 2023, Chapter 79) and the repeal of RSA Chapter 77, per NH Department of Revenue Administration TIR 2025-001. Federal calculations use 2025 IRS tax brackets, standard deduction ($15,750 single / $31,500 MFJ / $23,625 HOH), and Child Tax Credit rules. FICA uses 2025 Social Security (6.2% to $176,100) and Medicare (1.45% + 0.9% additional) rates per IRS.gov. The Massachusetts income tax estimate uses MA’s flat 5% rate applied to gross wages as a simplified illustration — actual MA liability depends on residency status, source of income, deductions, and the applicability of MA’s “convenience of the employer” rule; consult a tax professional for your specific MA obligations. Property tax estimate uses a 2.1% average effective rate — actual rates vary significantly by municipality. Business taxes (BPT/BET) are not included as they apply to businesses, not individual wage income. This tool is for planning purposes only and is not tax, legal, or financial advice. Last reviewed: June 2026.