New Hampshire state 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The D&I tax is currently scheduled to be repealed in 2025.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
-
Protect Your Loved Ones With an Estate PlanHere are eight things you can do to help protect your family.
-
Hotels That Give You the Best Value for Your Money, According to GuestsNew research reveals the best hotels in the U.S. for value for money according to hotel guests — and why they’re demanding more from their stay.
-
IRS Ends Inherited IRA Confusion: Annual RMDs Required for ManyIRAs The agency has resolved a major point of uncertainty for inherited IRA beneficiaries.
-
$145 Million in ‘Senior Freeze’ Checks MailedProperty Tax What you need to know about New Jersey's property tax relief program for older adults.
-
TaxAct Class Action Settlement: Details to KnowTax Filing A multimillion-dollar settlement over alleged data privacy violations affects some TaxAct users.
-
An IRA Contribution Option You Might Not KnowIRAs Retirement savings might not have to take a back seat just because your partner doesn't earn income.
-
Project 2025 Tax Overhaul Blueprint: What You Need to KnowTax Proposals Some people wonder what Project 2025 is and what it suggests for taxes.
-
The Taxes That Come out of Your PaycheckPayroll Tax Your take-home pay is often less than expected due to several payroll tax withholdings you need to know.
-
Seven States Where Gas Tax Increased July 1Gas Taxes Since July has arrived, drivers in several states are facing a gas tax hike.
-
401(k) Withdrawal Penalty Rule Changes for 2024Tax Rules More people are taking early emergency withdrawals from retirement savings accounts. New rules might offer some relief.
