New Hampshire Tax Guide
0%state income tax
New Hampshire has no state income tax on wages and no state sales tax. The state previously taxed interest and dividends but phased that out entirely as of 2025. However, New Hampshire has some of the highest property taxes in the nation to compensate.
New Hampshire Tax at a Glance
Income Tax
None
No state income tax
Sales Tax
None
No state sales tax
Property Tax
2.18%
98% above the national average
Estate Tax
No
No state estate tax
How New Hampshire Compares to the National Average
Notable Tax Facts
- No income tax on wages or salaries — the interest and dividends tax was phased out in 2025
- No state sales tax — one of only two states with no income tax AND no sales tax (Alaska is the other)
- Property taxes are among the highest in the nation at ~2.18%
- State motto is 'Live Free or Die' — reflected in its tax policy
- Relies almost entirely on property taxes and fees to fund government
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New Hampshire Tax FAQ
Does New Hampshire have income tax?
No. New Hampshire has no state income tax on wages. The state previously taxed interest and dividend income at 5%, but that tax was phased out completely as of January 1, 2025.
Does New Hampshire have sales tax?
No. New Hampshire has no state or local sales tax. This makes it a popular shopping destination for residents of neighboring states.
Why are New Hampshire property taxes so high?
With no income tax and no sales tax, New Hampshire relies heavily on property taxes to fund local schools and services. The effective rate of about 2.18% is among the highest in the nation.
Is New Hampshire tax-friendly overall?
It depends. For high earners, New Hampshire is excellent — no income tax means significant savings. But homeowners face very high property taxes, which can offset the income tax savings.
Compare With Other States
Other No-Income-Tax States
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Educational content, not tax advice. Tax rates are approximate and subject to change. Consult a qualified CPA or tax professional for advice specific to your situation. Data reflects widely-known public information as of early 2026.