State-by-State Guide to Taxes on Retirees
Tool | December 2020

New Hampshire State Tax Guide for Retirees

State tax rates and rules for income, sales, property, estate, and other taxes that impact retirees.

New Hampshire

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The Bottom Line
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Not Tax-Friendly

Residents of the Granite State pay no taxes on Social Security benefits, pensions or distributions from their retirement plans—because there's no general income tax. Though New Hampshire imposes a 5% tax on dividends and interest, the first $2,400 ($4,800 for joint filers) is exempt. There are also $1,200 personal exemptions available for residents 65 or older.

There's no sales tax in New Hampshire, either. So, you can shop to your heart's content without having to pay any tax.

Here's the hitch: The median property tax rate in New Hampshire is the fourth-highest in the U.S. Some property tax relief is available for seniors, but the programs, run by towns and cities, are complex and not overly generous.

Income Tax Range

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

The tax on dividends and interest is being phased out. The rate will be 4% for 2023, 3% for 2024, 2% for 2025, and 1% for 2026. The tax will then be repealed on January 1, 2027.

Taxation of Social Security Benefits

Social Security benefits are not taxed by the state.

Tax Breaks for Other Retirement Income

Income from retirement plans is exempt from New Hampshire's interest and dividends tax.

Railroad Retirement benefits are also exempt.

Sales Tax

No state or local sales tax.

Real Property Taxes

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 $37,000 or less if single or $47,000 or less if married or head of a household.

Annual Car Taxes and Fees

An annual vehicle registration fee and property tax based on the car's value and age are imposed.

Estate and Inheritance Taxes

No estate or inheritance tax.

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