New Hampshire Has No Income Tax on Wages: The Full 2026 Breakdown
New Hampshire has no state income tax of any kind. It has never taxed wages, salary, or self-employment income, and as of January 1, 2025 it no longer taxes interest and dividends either. No sales tax at all. But it has the 5th highest property tax rate in the nation at 1.50%. This is the honest picture for W-2 earners, investors, and retirees.
Last reviewed June 2026. Sources: New Hampshire Department of Revenue Administration, Tax Foundation, C2ER Cost of Living Index (Q2 2026, via MERIC).
Quick Facts: New Hampshire Taxes 2026
Wage Income Tax
0%
No tax on wages or salary
Interest/Div Tax
0%
Repealed effective Jan 1, 2025
State Sales Tax
0%
No state or local sales tax
Avg Property Tax
1.50%
5th highest in the nation
Estate Tax
None
Inheritance tax repealed in 2003
Social Security
Not taxed
No wage income tax applies
Cost of Living
108.5
8.5% above national avg (C2ER, Q2 2026)
Median Home
$465K
Rising sharply near MA border
The Property Tax Trap
New Hampshire is the only no-income-tax state in the Northeast, and this attracts many Massachusetts and Connecticut residents looking to escape their states' income taxes. But New Hampshire's property tax rate of 1.50% average effective is the 5th highest in the nation, behind only New Jersey, Illinois, Connecticut, and Vermont (Tax Foundation 2026, 2024 ACS data). On the median New Hampshire home priced at $465,000, annual property tax is approximately $6,975.
A Massachusetts resident earning $120,000 per year pays approximately $6,700 in Massachusetts state income tax (5.0% rate). If they move to New Hampshire and buy that $465,000 home, they save $6,700 in income tax but pay $6,975 in property tax versus the approximately $4,650 they would have paid on the same home in Massachusetts (1.00% effective rate). Net: the property tax premium of about $2,325 eats roughly a third of the income tax saving, leaving them about $4,375 a year ahead before sales tax.
NH vs MA for a $120K earner with a $465K home
New Hampshire
- Income tax: $0
- Property tax: ~$6,975 (1.50%)
- Sales tax: $0
- Total: ~$6,975
Massachusetts
- Income tax: ~$6,700 (5.0%)
- Property tax: ~$4,650 (1.00%)
- Sales tax: ~$2,660 (6.25%)
- Total: ~$14,010
New Hampshire wins in this scenario. The break-even point depends on home value relative to income. High earners with modest homes win more clearly. Estimates only; not tax advice.
Property Tax by NH County (2024)
| County | Effective Rate | On $400K Home |
|---|---|---|
| Hillsborough (Manchester, Nashua) | 1.62% | $6,480 |
| Merrimack (Concord) | 1.80% | $7,200 |
| Rockingham (Portsmouth) | 1.34% | $5,360 |
| Grafton (Hanover) | 1.52% | $6,080 |
| Cheshire (Keene) | 1.87% | $7,480 |
| New Hampshire avg | 1.50% | $6,000 |
Who New Hampshire Works Best For
High-income W-2 workers near the MA border
ExcellentMany residents of Southern New Hampshire commute to Boston or work remotely while claiming NH domicile. The income tax saving is real and large. Works best when home value is modest relative to income (under $400K if earning $150K+).
Retirees with expensive homes
CautionNo tax on Social Security, pension, or 401(k), and since the I&D Tax repeal on January 1, 2025, no tax on investment income either. But property tax on a $600K retirement home is $9,000/yr. Run the total numbers carefully. Retirees with modest homes and large retirement income fare much better.
Remote workers from MA, CT, RI
Very goodLive in New Hampshire, work remotely, pay no state income tax. No sales tax is a daily bonus. Proximity to Boston (1-2 hours) for entertainment and services. Key: do not let your employer be in a convenience-of-employer state.
Average earners with expensive homes
MixedIncome tax savings of $2,000-4,000 can be erased by the property tax premium vs neighboring states. NH works best for renters or buyers in affordable inland areas.
New Hampshire Tax FAQ
Does New Hampshire have a state income tax?
When was New Hampshire's interest and dividends tax eliminated?
What is the property tax rate in New Hampshire?
Does New Hampshire have sales tax?
Is New Hampshire good for retirees?
Sources: NH Department of Revenue Administration (revenue.nh.gov), RSA 77 (I&D Tax, repealed effective Jan 1, 2025), Tax Foundation. Last reviewed June 2026. Not tax advice.