State-by-State Guide to Taxes on Middle-Class Families
Tool | November 2021

New Hampshire State Tax Guide for Middle-Class Families

State tax rates and rules for income, sales, gas, property, cigarette, and other taxes that impact middle-class families.

New Hampshire

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The Bottom Line
Flag of New Hampshire

Mixed Tax Picture

New Hampshire differs from its New England neighbors by having not only no income tax, but no sales tax. But since there's still a government to run and roads to pave in the Granite State, the money has to come from somewhere. The result is some of the highest property taxes in the country. Also, a caveat on the zero income tax: Earned income is untaxed, but dividends and interest currently face a 5% levy (although the tax will be phased out by 2027).

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 The tax will then be repealed on January 1, 2027.

Sales Tax

No state or local sales tax.

Real Property Taxes

In New Hampshire, the median property tax rate is $2,129 per $100,000 of assessed home value.

Motor Fuel Taxes

Gasoline: 23.83¢ per gallon.
Diesel: 23.83¢ per gallon.

Sin Taxes

Cigarettes: $1.78 per pack
Other tobacco products: 65% of the wholesale price; premium cigars are exempt
Vapor products: $0.30 per ml on closed systems; 8% of wholesale price of nicotine liquid for open systems

Beer: $0.30 per gallon
New Hampshire directly controls wine and liquor sales through state-owned stores.

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.