What New Hampshire does and doesn't tax
New Hampshire does not tax wages, salaries, tips, interest, dividends, pensions or Social Security, and it has no state income tax withholding. New Hampshire never taxed wages, and its tax on interest and dividends was repealed for tax periods beginning on or after January 1, 2025.
Federal income tax still applies in full — the 2026 federal brackets run from 10% to 37% — and Social Security (6.2%) and Medicare (1.45%) come out of every paycheck. If you earn wages in a state that taxes income, for example by commuting across a border, that state can tax the wages earned there.
Income tax you avoid at common incomes
What a single filer would owe Massachusetts, the nearby state with the highest tax at $75,000, compared with $0 in New Hampshire:
| Income | New Hampshire | Massachusetts |
|---|---|---|
| $30,000 | $0 | $1,280 |
| $50,000 | $0 | $2,280 |
| $75,000 | $0 | $3,530 |
| $100,000 | $0 | $4,780 |
| $150,000 | $0 | $7,280 |
| $250,000 | $0 | $12,280 |
New Hampshire compared with nearby states
At $75,000 (single), New Hampshire ranks 43 (tied with 8 others) of 51 for state income tax, where 1 is the highest; 9 jurisdictions charge nothing at this income.
| State | Tax on $75,000 | Effective rate | Top rate |
|---|---|---|---|
| New Hampshire | $0 | 0% | none |
| Maine | $3,385 | 4.51% | 9.15% |
| Vermont | $2,426 | 3.23% | 8.75% |
| Massachusetts | $3,530 | 4.71% | 9% |
More about taxes in New Hampshire
- New Hampshire's 8.5% meals and rooms tax applies to restaurant meals, hotel stays and car rentals.
Frequently asked questions
Does New Hampshire have a state income tax?
No. New Hampshire never taxed wages, and its tax on interest and dividends was repealed for tax periods beginning on or after January 1, 2025. Wages, salaries, interest, dividends and retirement income are not taxed by the state.
How much does living in New Hampshire save on income tax?
On $75,000 of income, a single filer pays $0 to New Hampshire; 9 of 51 jurisdictions charge nothing at that income. Nearby, Massachusetts would charge about $3,530.
Do I still pay federal income tax in New Hampshire?
Yes. Federal income tax, Social Security and Medicare apply in every state. New Hampshire residents who earn wages in a state that does tax income can also owe that state tax on those wages.
What other taxes do New Hampshire residents pay?
New Hampshire's 8.5% meals and rooms tax applies to restaurant meals, hotel stays and car rentals.
Estimates only — not tax advice. New Hampshire figures: Tax Foundation, State Individual Income Tax Rates and Brackets, 2026 (as of Jan. 1, 2026). Checked October 2026. Your return may include income, deductions and credits this estimate leaves out.