New Hampshire Tax Rates 2026
Income tax, property tax, and estimated take-home pay for New Hampshire residents.
Income Tax in New Hampshire
New Hampshire is one of the few states with no state income tax. Residents keep more of their paycheck, though the state may make up revenue through higher sales tax, property tax, or other fees.
| Tax Component | Rate / Amount | On $75K Salary |
|---|---|---|
| Federal Income Tax | 10-37% (marginal) | $10,238 |
| New Hampshire State Tax | 0% | $0 |
| FICA (SS + Medicare) | 7.65% | $5,738 |
| Total Tax Burden | $15,976 | |
| Annual Take-Home | $59,024 |
Property Tax in New Hampshire
New Hampshire's effective property tax rate is 2.18%, which is above the national average of 1.07%. On the national median home value of $405,300, New Hampshire homeowners pay approximately $8,836 per year ($736/month) in property taxes.
Property tax is deductible on your federal return if you itemize, but the SALT deduction is capped at $10,000 total (combined state income tax + property tax). In New Hampshire, a $75K earner paying $8,836 in combined state/local taxes stays within the $10,000 SALT cap.
Cost of Living Considerations
Tax rates are only one piece of the puzzle. States without income tax often compensate with higher sales taxes, property taxes, or fees. When comparing New Hampshire to other states, also consider housing costs, healthcare expenses, grocery prices, and transportation costs. Use our calculators below to model your specific situation.
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Sales Tax in New Hampshire
New Hampshire does not levy a state sales tax, making it one of only 5 states without one. This provides meaningful savings on everyday purchases, vehicles, electronics, and other taxable goods. However, some local jurisdictions in New Hampshire may impose their own sales taxes, so check your specific area.
Tax Planning Tips for New Hampshire Residents
Maximize your no-tax advantage. Since New Hampshire has no state income tax, Roth IRA conversions are especially powerful here — you pay federal tax on the conversion but no state tax, and all future withdrawals are completely tax-free at both levels.
Watch property taxes. With no income tax revenue, New Hampshire relies more heavily on property taxes and sales taxes. Budget accordingly when purchasing a home, and explore homestead exemptions that may reduce your assessed value.
Remote work advantage. If you work remotely for a company in a high-tax state, living in New Hampshire means you typically pay taxes based on where you live — saving you the state income tax entirely. Verify your specific situation with a tax professional, as some states have reciprocity agreements or "convenience of employer" rules.
Who Benefits from Living in New Hampshire?
High earners benefit most from New Hampshire — a $200,000 earner saves $10,000-$20,000+ annually compared to living in California or New York. The savings compound dramatically over a career.
Retirees with large portfolios — 401(k) withdrawals, pension income, and Social Security are all free from state taxation, potentially saving tens of thousands over retirement.
Self-employed individuals — freelancers and business owners already face the 15.3% self-employment tax; eliminating state income tax provides meaningful relief.