Navigating the complexities of state taxes can be daunting, but understanding New Hampshire's tax landscape is essential for residents and newcomers alike.
In this guide, we'll explore key components of The Granite State's tax system, from income and sales taxes to property taxes and retirement benefits.
New Hampshire tax: Overview
New Hampshire stands out with no tax on wages or sales, making it a tax-friendly choice for many. However, property taxes can be on the higher side. The state previously taxed dividends and interest, but it was repealed in early 2025.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free 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.
In the news: Residents in Rochester experienced a dramatic spike in their tax property tax bills — with some seeing bills nearly triple following city-wide property value reassessments.
For more information, see New Hampshire Mobile Home and Condo Property Taxes Inexplicably Triple.
[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 tax
New Hampshire is a state that doesn't have a personal income tax.
The dividend and interest tax was repealed in 2025.
New Hampshire retirement taxes
There is no state income tax in New Hampshire, so your Social Security, benefits, pension, and retirement distributions are exempt.
- Social Security: Not taxable
- Pensions: Not taxable
- 401(k) and IRA Distributions: Not taxable
New Hampshire sales tax
New Hampshire doesn't have a sales tax.
How much are property taxes in New Hampshire?
In New Hampshire, the median property tax rate is 1.61% 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
-
3 Ways High-Income Earners Can Maximize Their Charitable Donations in 2025Tax Deductions New charitable giving tax rules will soon lower your deduction for donations to charity — here’s what you should do now.
-
Another State Quietly Bans Capital Gains Taxes: Will Others Follow?Capital Gains A constitutional amendment blocking future taxes on realized and unrealized capital could raise interesting questions for other states.
-
3 Ways High-Income Earners Can Maximize Their Charitable Donations in 2025
Tax Deductions New charitable giving tax rules will soon lower your deduction for donations to charity — here’s what you should do now.
-
Another State Quietly Bans Capital Gains Taxes: Will Others Follow?
Capital Gains A constitutional amendment blocking future taxes on realized and unrealized capital could raise interesting questions for other states.
-
An HSA Sounds Great for Taxes: Here’s Why It Might Not Be Right for YouHealth Savings Even with the promise of ‘triple tax benefits,’ a health savings account might not be the best health plan option for everyone.
-
Emergency Tax Bill Ends $6,000 Senior Deduction and Tip, Overtime Tax Breaks in D.C.Tax Law Here’s how state tax conformity rules could immediately raise your income tax liability.
-
New RMD Rules: Can You Pass This Retirement Distributions Tax Quiz?Quiz Take our RMD quiz to test your retirement tax knowledge. Learn about RMD rules, IRS deadlines, and tax penalties that could shrink your savings.
-
Ten Retirement Tax Plan Moves to Make Before December 31Retirement Taxes Proactively reviewing your health coverage, RMDs, and IRAs can lower retirement taxes in 2025 and 2026. Here’s how.
-
IRS Updates Capital Gains Tax Thresholds for 2026: Here’s What’s NewCapital Gains The IRS has increased the capital gains tax income thresholds for 2026. You'll need this information to help minimize your tax burden.
-
When to Hire a Tax Pro: The Age Most Americans Switch to a CPATax Tips Taxpayers may outsource their financial stress by a specific age. Find out when you should hire a tax preparer.
