Our comprehensive guide to taxes on retirement income, property and purchases, as well as special tax breaks for seniors, in every state. Go to Retiree Tax Map New Hampshire View State Compare List (0) selected | Compare up to 5 The Bottom Line 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 There's no general state sales tax. There are, however, some specific sales taxes: 9% on restaurants, prepared foods, hotel rooms and car rentals; 55 cents per megawatt hour on electricity; 7% on telecommunication services; and additional taxes on real estate transfers and alcohol. 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.IRAsRetirement income is not taxed. 401(k)s and Other Defined-Contribution Employer Retirement PlansRetirement income is not taxed.Private PensionsRetirement income is not taxed. Public PensionsRetirement income is not taxed. Property Taxes Median property tax on New Hampshire's median home value of $233,300 is $5,017, according to the Tax Foundation.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 andEstate Taxes There is no inheritance tax or estate tax.