New Hampshire Income Tax
Figure basis: Official New Hampshire Department of Revenue AdministrationNew Hampshire levies no state income tax on wages, salaries, or ordinary income. Residents owe no income tax at the state level, though federal income tax, Social Security, and Medicare payroll taxes still apply. Some states without an income tax offset revenue through higher sales or property taxes, so this page links to those calculators to help you build a complete picture of New Hampshire's overall tax environment. If you recently relocated to New Hampshire or are comparing states, use the sales tax and property tax tools below alongside the federal income tax calculator to assess your full tax burden. This page is sourced from New Hampshire Department of Revenue Administration and reflects current New Hampshire tax law.
New Hampshire has no state income tax. New Hampshire levies no individual income tax on wages or salaries. The state's Interest and Dividends Tax (RSA 77), which previously taxed interest and dividend income, was phased out and fully repealed effective January 1, 2025 under NH HB 2 (2023). As of 2025, New Hampshire imposes no individual income tax of any kind.
New Hampshire has no income tax
New Hampshire levies no individual income tax on wages or salaries. The state's Interest and Dividends Tax (RSA 77), which previously taxed interest and dividend income, was phased out and fully repealed effective January 1, 2025 under NH HB 2 (2023). As of 2025, New Hampshire imposes no individual income tax of any kind. For residents, wages, salaries and investment income are not subject to state income tax in New Hampshire.
New Hampshire just became fully income-tax-free, and what pays for it
New Hampshire has never taxed wages or salaries, but for years it was not quite an income-tax-free state. The Interest and Dividends Tax (RSA 77) taxed investment income at 5%, then stepped down to 4% for 2023 and 3% for 2024 before it was fully repealed effective January 1, 2025 under HB 2 (2023). As of tax year 2025, New Hampshire imposes no individual income tax of any kind, so a resident's dividends and interest now join their paycheck as untaxed at the state level.
That makes New Hampshire one of only a handful of states with neither a broad income tax nor a statewide sales tax. The trade-off is where the revenue comes from instead. New Hampshire leans heavily on local property taxes, which rank among the highest in the nation as a share of home value, plus business taxes, the meals and rooms tax, tobacco taxes, and lottery revenue.
So the practical lesson for anyone comparing states is to look past the $0 income tax line. A household relocating for the tax break should model the property tax on the specific town it is considering, because two homes of similar value in different municipalities can carry very different bills. This income tax calculator has nothing to compute for New Hampshire; the property tax tool is the one that decides the real burden.
New Hampshire income tax: frequently asked questions
Does New Hampshire have a state income tax?
No. New Hampshire levies no individual income tax on wages or salaries. The state's Interest and Dividends Tax (RSA 77), which previously taxed interest and dividend income, was phased out and fully repealed effective January 1, 2025 under NH HB 2 (2023). As of 2025, New Hampshire imposes no individual income tax of any kind.
Do I need to file a New Hampshire state income tax return?
New Hampshire does not collect a personal income tax, so there is no state income tax return to file. You still need to file a federal return with the IRS.
Does New Hampshire have a state income tax?
No, as of January 1, 2025. New Hampshire never taxed wages or salaries. The only individual income tax that existed, the Interest and Dividends Tax on interest and dividend income, was fully repealed effective January 1, 2025 under NH HB 2 (2023). New Hampshire is now a fully income-tax-free state.
What was the New Hampshire Interest and Dividends Tax?
The Interest and Dividends Tax (I&D Tax) under RSA 77 taxed interest and dividend income received by individuals, partnerships, and certain trusts. It never applied to wages, salaries, or most other forms of earned income. The rate was 5% when the phase-out began. It was reduced to 4% for 2023, then 3% for 2024, and fully eliminated from January 1, 2025 onward.
Does New Hampshire have a sales tax?
No. New Hampshire has no statewide sales tax on most goods and services. This makes it one of only five states with neither an income tax nor a statewide sales tax. The state does impose taxes on specific items such as meals and rooms, tobacco, and gasoline.
How does New Hampshire fund state government without an income or sales tax?
New Hampshire relies on property taxes (which are among the highest in the nation), business taxes, meals and rooms taxes, tobacco taxes, lottery revenues, and fees to fund state and local government services.
Official sources
- New Hampshire no income tax confirmation: New Hampshire Department of Revenue Administration, as at Jun 12, 2026.
Reviewed by the CalculatorHub team, edited by James Graham, 11 June 2026. See our methodology. General information, not financial or tax advice.