state tax

New Hampshire State Tax Guide

State tax rates and rules for income, sales, property, fuel, cigarette, and other taxes that impact New Hampshire residents.

Bottom Line

Middle-Class Families: Mixed Tax Picture (Go to the Kiplinger Tax Map for Middle-Class Families)
Retirees: Not Tax-Friendly (Go to the Kiplinger Tax Map for Retirees)

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).

New Hampshire Income Taxes

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 The tax will then be repealed on January 1, 2027.

New Hampshire Taxation of Social Security Benefits

Social Security benefits are not taxed by the state.

New Hampshire 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.

New Hampshire Sales Tax

No state or local sales tax.

New Hampshire Real Property Taxes

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

New Hampshire Property Tax Breaks for Retirees

An elderly exemption for property taxes is available to those age 65 and older who have lived in New Hampshire for at least three 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 and has owned his or her home for at least five consecutive years.

New Hampshire Motor Fuel Taxes

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

New Hampshire 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 Estate and Inheritance Taxes

No estate or inheritance tax.

Most Popular

The 11 Most Expensive Cities in the U.S.
real estate

The 11 Most Expensive Cities in the U.S.

From metro areas on both coasts to the middle of the Pacific Ocean, these are the priciest cities in the U.S. to call home.
August 9, 2022
Your Guide to Roth Conversions
Special Report
Tax Breaks

Your Guide to Roth Conversions

A Kiplinger Special Report
February 25, 2021
You'll Save More on Green Home Improvements Under the Inflation Reduction Act
Tax Breaks

You'll Save More on Green Home Improvements Under the Inflation Reduction Act

Tax credits for energy-efficient home improvements will be extended and expanded by the Inflation Reduction Act.
August 12, 2022

Recommended

New York State Tax Guide
state tax

New York State Tax Guide

State tax rates and rules for income, sales, property, fuel, cigarette, and other taxes that impact New York residents.
August 14, 2022
New Abortion Law Changes Tax Deductions
Tax Breaks

New Abortion Law Changes Tax Deductions

Georgia's abortion law could change the way that some states and people think about dependent tax deductions.
August 11, 2022
Will a Gas Tax Holiday or Suspension Lower Gas Prices Near You?
Tax Breaks

Will a Gas Tax Holiday or Suspension Lower Gas Prices Near You?

One way to bring down the price of gasoline is to establish a gas tax holiday. But will Uncle Sam, or your state government, suspend the gas taxes tha…
August 9, 2022
Tax-Free Weekend for Back-to-School Shopping
Tax Breaks

Tax-Free Weekend for Back-to-School Shopping

Fight inflation with a tax-free weekend. Twelve states are holding (or starting) sales tax holidays this weekend!
August 5, 2022