New Hampshire State Income Tax Overview

New Hampshire is one of a small number of states that does not impose a personal income tax on wages or salaries. If you live or work in New Hampshire, you do not file a New Hampshire state income tax return on earned income, and there is no New Hampshire equivalent to a Form 1040 for wages.

That said, no state income tax does not mean no taxes. New Hampshire funds state and local government through other taxes, including property taxes, business taxes, and other state and local revenue sources. Understanding how New Hampshire collects revenue, and how that compares to other states, is important whether you are moving to New Hampshire, already living in the state, or considering relocating elsewhere.

This page explains how New Hampshire's tax system works, what taxes residents do and do not pay, and how New Hampshire compares to other states from a tax perspective.

Does New Hampshire Have a State Income Tax?

No. New Hampshire does not have a state-level personal income tax on wages or salaries.

Residents of New Hampshire do not pay state income tax on earned income such as wages, salaries, or self-employment income. There is no New Hampshire state income tax return required for earned income, and no state income tax withholding taken from paychecks.

New Hampshire previously imposed a tax on certain types of investment income, including interest and dividends. That tax has been fully repealed, and New Hampshire no longer taxes interest or dividend income at the state level.

It is important to note that this applies only to state income taxes. New Hampshire residents are still required to file and pay federal income taxes with the IRS, just like residents of every other state.

How New Hampshire Raises Revenue

New Hampshire's lack of a tax on earned income does not mean the state operates without revenue. Instead of taxing wages and salaries, New Hampshire relies more heavily on property taxes, business taxes, and other state and local revenue sources to fund government operations.

Understanding this trade-off is important, especially for people moving to New Hampshire from high–income-tax states.

Property Taxes

Property taxes are a primary source of revenue in New Hampshire.

• Property taxes are imposed at the local level.
• Rates vary by town and municipality.
• Property taxes fund local services such as schools, public safety, and municipal operations.

For homeowners, property taxes are often the most significant ongoing tax cost.

Business Taxes

While individuals are not subject to state income tax on wages, New Hampshire does collect revenue from businesses.

• New Hampshire imposes a business profits tax on certain businesses.
• The state also imposes a business enterprise tax based on business activity.
• Business taxes play a central role in funding state government.

This distinction is important for business owners and entrepreneurs considering New Hampshire.

Other State and Local Taxes

New Hampshire also collects revenue through:

• Meals and rooms taxes
• Fuel taxes
• Tobacco and alcohol taxes
• Various state and local fees and assessments

These taxes help offset the absence of a broad-based income or sales tax.

How long do you have to live in New Hampshire to avoid taxes?

Residency for tax purposes is demonstrated by whether or not an individual has taken steps to move into New Hampshire, and, sever residency in a previous state or country. You may still need to file a full-year, part-year, or non-resident income tax return in your current state for the year you move to New Hampshire.

If you are considering moving to New Hampshire, remember that personal income taxes are just part of the overall tax burden. In the state of New Hampshire, however, the overall cost of living is relatively low compared to other high tax states such as California, New Jersey, and New York.

Bottom line: New Hampshire does not tax wages, salaries, or investment income at the state level, but it relies heavily on property and business taxes. For many residents, this structure can be advantageous, but it is not tax-free living.

Last updated: January 17, 2026

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