New Hampshire Financial Calculators

New Hampshire is the only state in the country that levies no individual income tax and no sales tax at any level of government. After eliminating its interest and dividends tax effective January 1, 2025, the Granite State became a fully no-income-tax destination — vaulting to third on the Tax Foundation's State Business Tax Climate Index. Workers here keep every dollar of their paycheck beyond federal taxes and FICA. Our New Hampshire Paycheck Calculator uses 2026 federal data to compute your exact take-home pay.

Zero Income Tax, Zero Sales Tax: The Granite State Advantage

What Disappeared in 2025

For decades, New Hampshire imposed a 5% tax on interest and dividend income — the state's only form of income taxation. House Bill 2, signed by Governor Sununu in 2023, phased that rate down to 4% in 2023, 3% in 2024, and then eliminated it entirely on January 1, 2025. The repeal means New Hampshire now taxes zero personal income of any kind: no tax on wages, salaries, interest, dividends, capital gains, or retirement distributions.

Combined with the absence of a state or local sales tax, this makes New Hampshire unique among all 50 states. Workers here face only federal obligations on their paychecks: income tax withholding at rates from 10% to 37%, Social Security at 6.2% on wages up to $184,500, and Medicare at 1.45% (plus 0.9% above $200,000). Use our New Hampshire Paycheck Calculator to see your exact federal-only deductions for 2026.

The Neighbor Comparison

The tax savings become stark when measured against New Hampshire's borders. Massachusetts charges a flat 5% income tax on wages plus a 4% surtax on income above $1 million. Vermont's progressive brackets climb to 8.75%. Maine's top rate is 7.15%. A household earning the New Hampshire median of roughly $99,000 (FRED, Census Bureau) would owe approximately $4,950 annually in Massachusetts or $6,000+ in Vermont — money that stays in a New Hampshire worker's pocket entirely.

The Boston Spillover: Nashua-Manchester's Economic Engine

Defense, Tech, and Financial Services

New Hampshire's southern tier — anchored by Nashua and Manchester — sits within easy commuting distance of Boston, and that proximity defines much of the state's economy. BAE Systems employs over 6,500 workers across facilities in Nashua, Hudson, Manchester, and Merrimack, making it one of the state's largest private employers. The company's Electronic Systems division designs defense electronics, flight controls, and electronic warfare systems.

Liberty Mutual, Fidelity Investments, and numerous smaller tech firms maintain significant operations in the southern corridor, drawn by the no-income-tax environment and a well-educated workforce. Many workers live in New Hampshire while commuting to or working remotely for Massachusetts-based employers — a legal strategy that avoids Massachusetts income tax for qualifying remote workers. This dynamic has been a persistent driver of population growth in towns like Bedford, Amherst, and Hollis.

Healthcare and the North Country

Dartmouth-Hitchcock Medical Center in Lebanon is the state's largest hospital and a major employer in the Upper Valley region. Further north, the economy shifts toward tourism (ski resorts, the White Mountains, fall foliage) and a mix of small manufacturing, healthcare, and education. The median household income statewide is approximately $99,000, one of the highest in the nation, though that figure is skewed upward by the affluent southern corridor — northern communities tend to have lower wages and higher unemployment.

The Property Tax Trade-Off: Highest in New England

The price of no income tax and no sales tax is among the nation's steepest property tax burdens. New Hampshire's average effective rate is approximately 1.61% according to the Tax Foundation, though actual rates vary dramatically by municipality — from under $3 per $1,000 in a few small towns to over $36 per $1,000 in communities with high service costs and small tax bases.

On the statewide median home (now roughly $525,000), that 1.61% rate translates to about $8,450 per year. Property taxes fund the vast majority of local services in New Hampshire, especially public education. Towns with significant commercial or resort property may enjoy lower residential rates, while bedroom communities that are almost entirely residential bear a heavier burden. The state offers a Low and Moderate Income Homeowners Property Tax Relief program, and seniors and disabled residents may qualify for additional exemptions.

A Housing Affordability Crunch

New Hampshire's statewide median home price has surged to approximately $525,000–$535,000 (NHFPI, 2025–2026), an increase of roughly 78% since 2019. The seacoast region around Portsmouth commands premiums above $600,000, and southern towns along the Massachusetts border are comparably expensive. Manchester and Concord offer more moderate pricing — typically in the $350,000–$450,000 range — but inventory remains tight statewide.

Prices grew roughly 3.9% in 2025, a meaningful slowdown from earlier years, and inventory is gradually improving. But the affordability gap remains wide: median household income rose only about 24% over the same period that housing prices jumped 78%. For first-time buyers, the combination of high purchase prices and high property taxes creates a steeper barrier than the absence of income and sales tax might suggest. Use our Mortgage Calculator to estimate monthly payments including New Hampshire's elevated property taxes.

New Hampshire has no estate tax and no inheritance tax, which benefits homeowners transferring property to heirs. The state does levy a real estate transfer tax of $7.50 per $1,000 of the sale price, split equally between buyer and seller — a relatively modest closing cost compared to transfer taxes in New York or Connecticut.

First-Time Buyer Help: NHHFA Programs

The New Hampshire Housing Finance Authority (NHHFA) offers several programs to offset the state's high entry costs. The Home First program provides a rate-advantaged 30-year fixed mortgage that can be paired with cash down payment assistance of $5,000, $10,000, or $15,000. The assistance is forgiven at 25% per year — fully forgiven after four years of homeownership. Borrowers below 80% of area median income may qualify for the Home Preferred program with reduced mortgage insurance costs.

A First-Generation Homebuyer program offers up to $10,000 in additional assistance for buyers whose parents and grandparents also never owned a home. All programs require completion of a homebuyer education course and a minimum 1% contribution from the buyer's own funds. Given that even a 3% down payment on a $525,000 home is $15,750, the NHHFA programs can cover a substantial portion of upfront costs.

Retirement in the Granite State: Tax-Free on Every Front

Since the January 2025 repeal of the interest and dividends tax, New Hampshire taxes no retirement income of any kind. Social Security benefits, pension distributions, 401(k) and IRA withdrawals, and investment income are all completely untaxed at the state level, per SmartAsset. The state also levies no estate tax and no inheritance tax. For retirees comparing destinations, New Hampshire now matches Florida, Texas, and Nevada in offering zero state taxation on every common income stream.

The trade-off, as with younger residents, is property taxes. But seniors aged 65 and older may qualify for an Elderly Exemption that reduces their home's taxable value — the amount varies by municipality but can shave thousands of dollars off an annual bill. Combined with no sales tax on everyday purchases, New Hampshire offers a favorable retirement package for those who own their homes outright or have manageable mortgage payments. Use our Retirement Calculator to model how a zero-income-tax state affects your long-term savings.

From Seacoast to North Country: Where Workers Play

New Hampshire packs geographic variety into a small footprint. The seacoast around Portsmouth — just 18 miles of Atlantic coastline — is the state's most expensive and walkable area, with a restaurant and cultural scene that punches well above its size. The Lakes Region, centered on Lake Winnipesaukee, draws summer tourists and supports a seasonal rental economy. The White Mountains in the northern third of the state include Franconia Notch, Mount Washington (the highest peak in the Northeast at 6,288 feet), and a cluster of ski resorts — Loon, Cannon, Bretton Woods, and Wildcat — that drive winter tourism.

For residents of the Nashua-Manchester corridor, the practical appeal is access. A BAE Systems engineer in Nashua can reach the beaches of Hampton in 45 minutes, the slopes of Loon Mountain in 90 minutes, and downtown Boston in under an hour. The absence of sales tax makes New Hampshire a shopping destination for residents of neighboring states — the liquor stores along Interstate 95 and Route 93 are especially popular with Massachusetts visitors.

The Massachusetts Border Calculus: When NH Wins and When It Doesn't

Thousands of New Hampshire residents frame their finances around the Massachusetts border. A household earning $150,000 saves roughly $7,500 per year in state income tax by living in New Hampshire rather than Massachusetts. Over a 30-year career, that savings — invested conservatively — can compound to over $500,000. The absence of sales tax adds another $1,000–$2,000 in annual savings for an average household.

But the math isn't one-sided. A $525,000 home in southern New Hampshire carries roughly $8,450 in annual property taxes at the 1.61% average effective rate. A similarly priced home in a Massachusetts town with a 1.2% effective rate would cost about $6,300 — a $2,150 annual difference favoring Massachusetts on property taxes alone. For lower-income households, the property tax burden can erode or even erase the income tax savings. The crossover point depends on income level, home value, and spending patterns — and it's worth running the numbers for your specific situation before choosing which side of the border to buy on.

Key Financial Facts About New Hampshire

• State income tax: None — 0% on all income (I&D tax eliminated January 2025)
• Sales tax: None — no state or local sales tax of any kind
• Property tax: ~1.61% average effective rate (among the highest in the U.S.)
• Median home price: ~$525,000 (up 78% since 2019)
• Median household income: ~$99,000 (one of the highest nationally)
• Population: ~1.4 million
• No estate or inheritance tax
• Major employers: BAE Systems, Dartmouth-Hitchcock, Liberty Mutual, Fidelity