Your New Hampshire paycheck
New Hampshire take-home pay: the newest no-tax state
New Hampshire has long been famous for its “Live Free or Die” motto, but until 2025, it was not entirely income-tax-free. The Interest and Dividends Tax (I&D Tax) had been in place since 1923, taxing interest and dividend income at rates up to 5%. In 2023, the legislature passed a phase-out schedule: 4% for 2023, 3% for 2024, and 0% from January 1, 2025.
New Hampshire never taxed wages or salary — only investment income was subject to the I&D Tax. But the repeal means that for the first time, no personal income of any kind faces state taxation. Combined with no sales tax, New Hampshire now stands out as the only state with zero income tax AND zero sales tax.
| Gross salary | Federal tax | FICA | Take-home | Monthly |
|---|---|---|---|---|
| $50,000 | $3,820 | $3,825 | $42,355 | $3,530 |
| $75,000 | $7,670 | $5,738 | $61,592 | $5,133 |
| $100,000 | $13,170 | $7,650 | $79,180 | $6,598 |
Single filer, standard deduction $16,100, 2026 federal brackets. Wages were never subject to the I&D Tax.
Worked example: $95,000 salary — NH resident commuting to Boston
A financial analyst earning $95,000 lives in Nashua, NH and commutes to Boston. Filing single with the standard deduction, taxable income is $78,900 ($95,000 minus $16,100). Federal income tax totals $12,070: 10% on $12,400, 12% on $38,000, and 22% on $28,500. Social Security is $5,890 (6.2%), Medicare is $1,378 (1.45%). Total taxes: $19,338. Take-home: $75,663 per year, or $6,305 per month.
If this same worker lived in Massachusetts instead, the state’s 5% flat income tax would cost about $3,950 per year (on taxable income), dropping monthly take-home to about $5,976. That is roughly $330 per month — nearly $4,000 per year — that stays in the New Hampshire resident’s pocket.
The trade-off materializes if our analyst buys a home. A $450,000 home in Nashua carries about $7,965 per year in property tax at the 1.77% effective rate. The same home in a Boston suburb might carry $4,500–$5,500 in property tax but comes with $3,950 in state income tax. Net result: the NH homeowner is roughly even, with the income-tax savings mostly absorbed by higher property tax. Renters come out clearly ahead in New Hampshire.
One additional benefit: New Hampshire charges no sales tax on purchases. Massachusetts charges 6.25%. A $40,000 car purchase saves $2,500 in New Hampshire. Over time, the absence of sales tax on clothing, electronics, furniture and everyday goods compounds the advantage, particularly for high earners who consume proportionally more.
The trade-off
New Hampshire's unique model: no income tax, no sales tax, high property tax
New Hampshire is unique among the nine no-income-tax states because it also has no sales tax. Only four other states (Alaska, Delaware, Montana, Oregon) share this distinction, and of those, only Alaska also has no income tax. But New Hampshire pays for this double absence with property tax.
Property tax: the highest in the no-tax club
New Hampshire’s effective property tax rate averages roughly 1.77%, the highest of any no-income-tax state and among the top five nationally. The state has no broad-based tax besides property tax, so local governments rely heavily on property taxes to fund schools, roads and services. This creates a significant annual cost for homeowners.
No sales tax at all
New Hampshire charges no state or local sales tax on any goods or services. This is a meaningful advantage for consumers, especially on large purchases like furniture, electronics or vehicles. Combined with no income tax, your spending power is entirely untaxed.
| Tax type | New Hampshire | National median |
|---|---|---|
| State income tax | 0% (since 2025) | ~4.5% |
| Sales tax | 0% | ~6.6% |
| Effective property tax | ~1.77% | ~1.00% |
The Massachusetts border effect
Many New Hampshire residents work in Massachusetts but pay no New Hampshire income tax on those wages. Massachusetts used to tax these cross-border workers during COVID-era remote work, but that policy has been challenged. For workers who live in New Hampshire and commute to Boston, the paycheck advantage is substantial: Massachusetts has a 5% flat income tax that NH residents avoid entirely.
Compare New Hampshire with Massachusetts to see the cross-border difference, or review all nine no-tax states in our guide.
Questions
New Hampshire salary after taxes FAQ
Does New Hampshire have a state income tax?
No, not since January 1, 2025. New Hampshire never taxed wages, but it had an Interest and Dividends Tax on investment income dating to 1923. That tax was phased out over three years and reached 0% on January 1, 2025. Now no personal income of any kind is subject to state tax in New Hampshire.
What happened to New Hampshire's Interest and Dividends Tax?
The I&D Tax was a state tax on interest and dividend income (not wages). In 2023, the legislature passed a phase-out: 4% for tax year 2023, 3% for 2024, and 0% from January 1, 2025. It is now fully repealed. New Hampshire is the newest member of the no-income-tax club.
How much is taken from a paycheck in New Hampshire?
Only federal taxes: federal income tax based on your bracket, Social Security at 6.2% on wages up to $184,500, and Medicare at 1.45%. Wages were never subject to the I&D Tax, so the paycheck has always been state-tax-free. On a $75,000 single salary, about $13,408 is deducted total.
What is the take-home on $100,000 in New Hampshire?
A single filer earning $100,000 takes home approximately $79,180 per year after federal taxes and FICA. Monthly take-home is about $6,598. No state deductions apply.
Why is New Hampshire's property tax so high?
New Hampshire has no income tax and no sales tax, so property tax is the primary funding mechanism for local government and schools. The effective rate averages about 1.77%, the highest of any no-income-tax state. This is the main trade-off for the absence of other broad-based taxes.
Does New Hampshire have a sales tax?
No. New Hampshire has no state or local sales tax on any goods or services. It is one of only five states with no sales tax. Combined with no income tax (since 2025), this makes New Hampshire the only state with zero income tax and zero sales tax.
Is it cheaper to live in New Hampshire or Massachusetts?
For wage earners, New Hampshire offers a significant advantage: no state income tax vs. Massachusetts's 5% flat tax. On a $100,000 salary, that is roughly $4,000-$5,000 in annual savings. However, New Hampshire's higher property tax can offset some of this, especially for homeowners with expensive properties. Renters and moderate-value homeowners typically come out ahead in New Hampshire.
Does New Hampshire tax retirement income?
No. New Hampshire imposes no state tax on Social Security, pensions, 401(k) withdrawals, IRA distributions, or any retirement income. The repealed I&D Tax previously applied to interest and dividends, but that is now gone as well.
- Sources: New Hampshire Department of Revenue Administration (I&D Tax repealed Jan 1, 2025; no sales tax) · Tax Foundation (New Hampshire confirmed as no-income-tax state for 2026) · IRS Rev. Proc. 2025-32 · SSA 2026 wage base $184,500.
- 🔄 Last updated 2026-07-28 · Tax year 2026
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