How New Hampshire income tax works
New Hampshire does not levy a state individual income tax. Wages, salaries, investment income and retirement income are all free of state-level income tax here.
That means your state take-home pay equals your gross pay, before federal tax and FICA. It is one of the main reasons people compare NH with higher-tax states.
New Hampshire has no tax on wages; its interest and dividends tax was repealed for 2025.
What you still pay in New Hampshire
No income tax does not mean no taxes. New Hampshire still funds services through other channels.
Sales tax runs about 0.00% combined, and the average effective property tax rate is around 1.61%.
Federal income tax and payroll taxes (Social Security and Medicare) still apply to your earnings regardless of the state you live in.
Is New Hampshire actually cheaper?
For high earners, skipping a state income tax can mean keeping thousands more each year. For others, higher sales or property taxes can offset some of the benefit.
Compare total tax burden, not just income tax, when weighing a move. Use the sales and property tax tools for New Hampshire to build the full picture.
Frequently asked questions
Does New Hampshire have a state income tax?
No. New Hampshire is one of the states with no individual income tax on wages or other income.
What taxes do I pay in New Hampshire?
You still pay federal income tax and payroll taxes, plus state and local sales tax (around 0.00% combined) and property tax (about 1.61% effective).
Is income from investments taxed in New Hampshire?
New Hampshire does not tax wage or capital gains income at the state level.
How accurate is this calculator?
It reflects that New Hampshire has no state income tax. Federal tax still applies. Confirm details with the New Hampshire Department of Revenue Administration (revenue.nh.gov).