Tool | October 2016

State-by-State Guide to Taxes on Retirees

Our comprehensive guide to taxes on retirement income, property and purchases, as well as special tax breaks for seniors, in every state.

New Hampshire

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The Bottom Line
Map of New Hampshire

Mixed Tax Picture

The Granite State depends more on property taxes for revenue than most states because there are no general income taxes or sales taxes. It also receives substantial revenue from taxes on motor fuels, tobacco products and alcoholic beverages sold through state liquor stores. The state income tax is limited to a 5% tax on dividends and interest; a $1,200 exemption is available for residents 65 or older. Seniors can also defer some property taxes, subject to income and asset limitations.

State Sales Tax

No sales tax

Income Tax Range

New Hampshire doesn't have an income tax. But there's a 5% tax on dividends and interest in excess of $2,400 for individuals ($4,800 for joint filers).

Social Security

Benefits are not taxed.

Exemptions for Other Retirement Income

Retirement income is not taxed. A $1,200 exemption is available for residents 65 or older for taxable dividends and interest.

IRAs

Retirement income is not taxed.

401(k)s and Other Defined-Contribution Employer Retirement Plans

Retirement income is not taxed.

Private Pensions

Retirement income is not taxed.

Public Pensions

Retirement income is not taxed.

Property Taxes

The median property tax on New Hampshire's median home value of $236,400 is $5,131.

Tax breaks for seniors: An elderly exemption for property taxes is available to those age 65 and older who have lived in New Hampshire for at least five years. Towns and cities set additional eligibility rules, but the minimum exemption is $5,000 off the assessed home value. Property taxes can be deferred but accrue interest at the rate of 5% per year. The deferred property tax may not exceed 85% of the equity value of the residence. The deferral is available (if granted by the assessing officials) to any resident property owner who is at least 65 years old.

To be eligible for the Low and Moderate Income Homeowner's Property Tax Relief program in New Hampshire, you must own a home subject to the state education property tax, reside in the home as of April 1 of the year for which the claim for relief is made, and have a total household income of $20,000 or less if single or $40,000 or less if married or head of a household.

Inheritance and Estate Taxes

There is no inheritance tax or estate tax.