New Hampshire tax: Overview
New Hampshire has no income tax on wages and salaries, and no sales tax. New Hampshire also has fairly high property tax compared to other states. The state taxes dividends and interest at 4%. (The tax is scheduled to be eliminated in 2025.)
The Granite State doesn't tax Social Security benefits. Income from retirement plans is exempt from New Hampshire's interest and dividends tax. Railroad Retirement benefits are also exempt.
[Data for this state tax guide was gathered from a number of sources including the Census Bureau, the state’s government website, the Sales Tax Handbook, and the Tax Foundation. Property taxes are cited as a rate percentage rather than the assessed value.]
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Is there an income tax in New Hampshire?
New Hampshire is a state that doesn't have a personal income tax. However, currently, the state has a 4% tax on dividends and interest.
However, the tax on dividends and interest is being phased out due to legislation. According to the New Hampshire Department of Revenue Administration:
- For years ending before December 31, 2023, the tax rate is 5%.
- For years ending on or after December 31, 2023, the tax rate is 4%.
- For years ending on or after December 31, 2024, the tax rate is 3%
The D&I tax is currently scheduled to be repealed in 2025.
Is shopping tax-free in NH?
New Hampshire doesn't have sales tax.
How much are property taxes in New Hampshire?
In New Hampshire, the median property tax rate is 1.93% of assessed home value, according to the Tax Foundation.
New Hampshire Property Tax Breaks for Retirees
An exemption for property taxes is available to those age 65 and older who have lived in New Hampshire for at least three years.
New Hampshire gas tax
| Product | Tax |
|---|---|
| Gasoline | $0.22 per gallon |
| Diesel | $0.22 per gallon |
Source: Sales Tax Handbook
New Hampshire taxes on tobacco and alcohol
New Hampshire tobacco taxes
| Product | Tax Amount |
|---|---|
| Cigarettes | $1.78 per pack |
| Other Tobacco Products | 48% of the wholesale price |
| Medical Marijuana | 0.00% |
Source: Sales Tax Handbook
New Hampshire alcohol taxes
| Product | Tax Amount |
|---|---|
| Beer | $0.30 per gallon |
| Wine | $0.00 per gallon |
| Liquor | state-controlled |
Source: Sales Tax Handbook
New Hampshire estate and inheritance taxes
New Hampshire doesn't have estate or inheritance tax.
Related Content
-
'Pickleball Tax' Battle Heads to CourtState Tax The pickleball controversy continues as a nonprofit organization takes legal action against “illegal” taxes.
-
How to Organize Your Financial Life (and Paperwork)To simplify the future for yourself and your heirs, put a financial contingency plan in place. The peace of mind you'll get is well worth the effort.
-
IRS Free File Is Now Open for 2025: Are Your Taxes Eligible?Tax Filing Official tax season doesn't begin until late January, but taxpayers can start filing free online returns now.
-
California Fires: How to Recover Tax Records and Other Important DocumentsDisaster Recovery Having your tax records and other vital documents is important for claiming casualty loss deductions that can help with recovery.
-
Child and Dependent Care Credit: How Much Is It?CDCTC The non-refundable tax break can help working families afford quality care for their child or qualifying dependent.
-
Gov. Hochul Wants to Triple the New York Child Tax CreditState Tax Millions of New York families could get a larger state child tax credit check over the next two years under a new proposal.
-
U.S. Consumers May Feel Pinch From Panama Canal Tariff HikeTax Policy The Panama Canal tariffs on crossing ships will add to looming price hikes for U.S. consumers as Trump threatens to take control of the historic waterway.
-
The American Opportunity Tax Credit (AOTC): How Much Is It Worth?Tax Credits This tax break can help you offset $2,500 in qualifying expenses tied to your higher education. Here's what you need to know.
-
Does Your State Have a Child and Dependent Care Tax Credit?
Child and Dependent Care Tax Credit Over two dozen states, plus the District of Columbia offer tax credits or deductions for working families.
-
Should Rent Be Part of Your Retirement Plans?Retirement Taxes Retiree renters may qualify for potential tax savings. Are you considering a move?
