Bottom Line
Middle-Class Families: Tax-Friendly (Go to the Kiplinger Tax Map for Middle-Class Families)
Retirees: Not Tax-Friendly (Go to the Kiplinger Tax Map for Retirees)
New Hampshire differs from its New England neighbors by having not only no income tax, but no sales tax. But since there's still a government to run and roads to pave in the Granite State, the money has to come from somewhere. The result is some of the highest property taxes in the country.
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Also, a caveat on the zero income tax: Earned income is untaxed, but dividends and interest currently face a 5% levy (although the tax will be phased out by 2027).
New Hampshire Income Taxes
New Hampshire Income Tax Range
New Hampshire doesn't have an income tax. However, currently there's a 5% tax on dividends and interest in excess of $2,400 for individuals ($4,800 for joint filers).
The tax on dividends and interest is being phased out. The rate will be 4% for 2023, 3% for 2024, 2% for 2025, and 1% for 2026. The tax will then be repealed on January 1, 2027.
New Hampshire Taxation of Social Security Benefits
Social Security benefits are not taxed by the state.
New Hampshire Tax Breaks for Other Retirement Income
Income from retirement plans is exempt from New Hampshire's interest and dividends tax. Railroad Retirement benefits are also exempt.
New Hampshire Sales Tax
No state or local sales tax.
New Hampshire Real Property Taxes
In New Hampshire, the median property tax rate is $1,766 per $100,000 of assessed home value.
New Hampshire Property Tax Breaks for Retirees
An elderly exemption for property taxes is available to those age 65 and older who have lived in New Hampshire for at least three years. Towns and cities set additional eligibility rules, but the minimum exemption is $5,000 off the assessed home value.
Property taxes can be deferred but accrue interest at the rate of 5% per year. The deferred property tax may not exceed 85% of the equity value of the residence. The deferral is available (if granted by the assessing officials) to any resident property owner who is at least 65 years old and has owned his or her home for at least five consecutive years.
New Hampshire Motor Fuel Taxes
Gasoline: 23.83¢ per gallon.
Diesel: 23.83¢ per gallon.
New Hampshire Sin Taxes
Cigarettes: $1.78 per pack
Other tobacco products: 65% of the wholesale price; premium cigars are exempt
Vapor products: $0.30 per ml on closed systems; 8% of wholesale price of nicotine liquid for open systems
Beer: $0.30 per gallon
New Hampshire Estate and Inheritance Taxes
No estate or inheritance tax.
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