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Tax Brackets
New Hampshire Income Tax Brackets 2026
New Hampshire has no state income tax
Your entire salary is exempt from state income tax withholding. Only federal income tax and FICA (Social Security and Medicare) are deducted from your paycheck.
Overview
Understanding New Hampshire Taxes
New Hampshire is now a true no-income-tax state for all types of income. The state historically taxed interest and dividend income at 5% through the Interest and Dividends Tax (commonly called the Hall Tax). This tax was phased out over several years and fully eliminated as of January 1, 2025. As of 2026, New Hampshire does not tax wages, salaries, interest, dividends, capital gains, or any other form of personal income.
New Hampshire is also one of only five states with no statewide sales tax. Combined with the zero income tax, this gives New Hampshire one of the lowest overall tax burdens on consumption and earnings in the country. The state motto, "Live Free or Die," extends meaningfully to its tax philosophy.
However, New Hampshire compensates with some of the highest property taxes in the nation. The average effective property tax rate is approximately 1.93%, nearly double the national average. For a median-value home, this translates to a significant annual property tax bill. Property taxes fund the majority of local services including schools, police, and infrastructure, since there is no broad-based sales or income tax to supplement revenue.
The cost-of-living index in New Hampshire is approximately 113, about 13% above the national average. Housing costs are the primary driver, particularly in the southern tier (Nashua, Manchester, and Salem) where many residents commute to Massachusetts for work. Northern New Hampshire and the Lakes Region tend to be more affordable but offer fewer employment opportunities.
For commuters working in Massachusetts, an important consideration is that Massachusetts generally cannot tax New Hampshire residents on their wages earned in Massachusetts, thanks to an interstate compact. However, if you work for a Massachusetts employer remotely from New Hampshire, tax treatment can become complicated — consulting a tax professional is advisable if your employer has Massachusetts nexus.
New Hampshire does levy a Business Profits Tax (7.50%) and a Business Enterprise Tax (0.55%) on businesses, which can affect self-employed individuals and small business owners. These taxes apply to net business income, not wages, so W-2 employees are not directly impacted.
FAQ
Frequently Asked Questions
Smart Moves
Tax Tips for New Hampshire Residents
Factor in property taxes when comparing take-home pay to other states — the savings from no income tax may be partially offset by higher property tax bills
If you commute to Massachusetts for work, verify that your employer is correctly withholding zero NH state tax, not Massachusetts tax
Self-employed residents should plan for the Business Profits Tax and Business Enterprise Tax on net business income
Other States
Calculate Your Paycheck in Other States
For educational purposes only -- not financial or tax advice. Tax rates shown are based on 2026 data and may not reflect recent changes. Consult a tax professional for your specific situation.