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Official Tax Guide

New Hampshire Taxes 2025: Income, Sales, and Property Tax Guide

Complete guide to New Hampshire state taxes. Income tax (0% (Interest/Dividends taxed)), sales tax, and what you need to know before moving.

Updated January 15, 2026
5 min read

State Tax Guide 2025: New Hampshire

Moving to New Hampshire? One of the state’s biggest draws is its tax structure, particularly the absence of broad-based income and sales taxes. This guide provides a clear overview of what to expect in 2025, helping you plan your financial future in the Granite State.

1. Income Tax

New Hampshire is one of the few states without a traditional wage or salary income tax. However, it is not entirely tax-free.

  • Tax Rate: 0% on wages and salaries.
  • What is Taxed: The state imposes a tax on interest and dividend income. This applies to income received from investments, such as stocks, bonds, and bank accounts.
  • Structure: The tax on interest and dividends is flat. For the 2025 tax year, the rate remains 3%.
  • Important Note: There is an allowable deduction for individuals with a federal Adjusted Gross Income (AGI) of less than the specified threshold, which is adjusted for inflation. For 2025, individuals with a federal AGI below $54,500 (or $109,000 for married couples filing jointly) can claim a deduction that may eliminate their state tax liability on this income.

Future Outlook: It is important to note that New Hampshire has a legislative plan to phase out the Interest & Dividends Tax. While the tax is still in effect for 2025, it is scheduled for repeal on January 1, 2027.

2. Sales Tax

New Hampshire is a true anomaly in the United States regarding sales tax.

  • State Sales Tax Rate: 0%
  • Local Sales Tax Rate: 0%

There is no state sales tax, and local municipalities (cities and towns) do not have the authority to levy a local sales tax. The price you see on the tag is the price you pay at checkout.

3. Property Tax

While New Hampshire does not tax income or sales, it relies heavily on property taxes to fund local services like schools, roads, and public safety.

  • Overview: New Hampshire has some of the highest property tax rates in the nation. However, these rates vary significantly depending on the municipality.
  • General Range: Effective tax rates can range widely, from under 1.5% to over 3% of a property's assessed value. This depends heavily on the town's budget, school district costs, and property values.
  • Context: While the tax rate is high, New Hampshire has no state-level property tax; all property taxes are levied at the local level. Homebuyers should carefully research property tax rates for any specific town they are considering.

4. Other Taxes

Beyond income and property, here are other notable taxes in New Hampshire:

  • Gas Tax: New Hampshire has a tax on gasoline. As of 2025, the rate is 32.2 cents per gallon. This is included in the price at the pump.
  • "Sin" Taxes: The state levies specific taxes on alcohol and tobacco products. These are typically included in the retail price.
    • Tobacco: An excise tax is applied to cigarettes, cigars, and other tobacco products.
    • Alcohol: A tax is applied to beer, wine, and spirits.
  • Inheritance Tax: New Hampshire does not have an inheritance tax. This is a significant advantage for heirs.
  • Business Taxes: While individuals don't pay tax on wages, businesses operating in New Hampshire are subject to a Business Profits Tax (BPT) and a Business Enterprise Tax (BET).

5. Retiree Taxes

For retirees, New Hampshire is a very attractive destination due to its tax treatment of retirement income.

  • Retirement Income: Not taxed.
    • Social Security benefits are not taxed at the state level.
    • Pension income (from private or government pensions) is not taxed.
    • Distributions from 401(k)s, IRAs, and other retirement accounts are not taxed.
  • The Exception: As noted in the Income Tax section, retirees with significant investment income may be subject to the 3% tax on interest and dividends, depending on their income level and deductions.

6. Comparison to Neighbors

New Hampshire's tax structure is unique in New England.

  • Massachusetts: Massachusetts has a flat 5% state income tax on wages and a 6.25% state sales tax. This makes New Hampshire significantly more tax-friendly for workers and shoppers, though property taxes in NH can be higher.
  • Vermont: Vermont has a progressive income tax (rates up to 8.75%) and a 6% state sales tax. New Hampshire has no income tax on wages and no sales tax.
  • Maine: Maine has a progressive income tax (rates up to 7.15%) and a 5.5% state sales tax. New Hampshire offers a clear advantage on both fronts.
  • Massachusetts: While close geographically and economically, the tax difference is stark. MA taxes wages, sales, and has an inheritance tax. NH taxes none of these for individuals.

Disclaimer: Tax laws change frequently. The information provided in this guide is for general informational purposes only and is not a substitute for professional tax advice. Consult a Certified Public Accountant (CPA) or tax professional for advice tailored to your specific financial situation.