New Hampshire State Tax: Overview
New Hampshire has no income tax and no sales tax. New Hampshire also has fairly high property taxes when compared to other states.
Earned income is untaxed in New Hampshire, but the state taxes dividends and interest at 5%.
Social Security benefits are not taxed by the state. Income from retirement plans is exempt from New Hampshire's interest and dividends tax. Railroad Retirement benefits are also exempt.
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[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.]
New Hampshire Income Taxes
New Hampshire Income Tax Range
New Hampshire is a state that doesn't have a personal income tax. However, currently, the state has a 5% tax on dividends and interest.
However, due to legislation, 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 The tax is scheduled to be repealed in 2027, according to the New Hampshire Department of Revenue Administration.
New Hampshire Sales Tax
Income from retirement plans is exempt from New Hampshire's interest and dividends tax. Railroad Retirement benefits are also exempt.
New Hampshire Real Property Taxes
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 Motor Fuel (Gas) Taxes
| Product | Tax |
|---|---|
| Gasoline | $0.24 per gallon |
| Diesel | $0.24 per gallon |
Source: Sales Tax Handbook
New Hampshire Tobacco and Alcohol Taxes
| Product | Tax |
|---|---|
| Cigarettes | $1.78 per pack |
| Other Tobacco Products | 48% of the wholesale price |
| Medical Marijuana | 0.00% |
Source: Sales Tax Handbook
| Product | Tax |
|---|---|
| Beer | $0.00 per gallon |
| Wine | $0.30 per gallon |
| Liquor | state-controlled |
New Hampshire's general sales tax does not apply to the purchase of beer, wine, and liquor.
Source: Sales Tax Handbook
New Hampshire Estate and Inheritance Taxes
New Hampshire doesn't have estate or inheritance tax.
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