New Hampshire State Tax Guide

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%. (The tax is scheduled to be eliminated in 2025.)

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.

Subscribe to Kiplinger’s Personal Finance

Be a smarter, better informed investor.

Save up to 74%

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.

Sign up

[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 The tax is scheduled to be repealed in 2027, according to the New Hampshire Department of Revenue Administration.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.

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) taxes (motor fuel)

Source: Sales Tax Handbook

New Hampshire taxes on tobacco and alcohol

Source: Sales Tax Handbook

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.