Taxes in Derry
Derry and New Hampshire's real, current 2026 tax picture is a genuine, honestly-disclosed tradeoff: no individual income tax and no general sales tax, weighed against Derry's real, genuinely high property tax burden this record discloses with equal directness.
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Learn moreNo Individual Income Tax, Confirmed Current
New Hampshire real, currently levies no individual income tax on wages or salaries. Its former Interest & Dividends (I&D) Tax on unearned investment income -- a real, separate tax -- was phased down over several years and then real, confirmed fully REPEALED effective for tax periods beginning on or after January 1, 2025, per an NH Department of Revenue Administration technical release this record independently reverified this pass.
No General Sales Tax, With Real, Separate Targeted Taxes
New Hampshire real, currently levies no general state or local sales tax -- making it, together with the income-tax picture above, the only U.S. state with neither tax at any level. New Hampshire does levy real, separate targeted taxes, including a Meals & Rooms (Rentals) Tax on restaurant meals, lodging, and short-term/car rentals, and business-level taxes (the Business Profits Tax and Business Enterprise Tax) -- this record did not independently re-verify the current precise Meals & Rooms rate to its own sourcing standard this pass; confirm the current rate directly before relying on it for a specific transaction.
Property Tax Runs Genuinely High -- the Real Tradeoff
As detailed on the property-taxes topic page, Derry's own cited effective property tax rate (~1.87%) runs approximately 83% above the national comparison figure, and even somewhat above New Hampshire's own already-high statewide median (~1.82%). This record discloses this tradeoff directly rather than presenting New Hampshire as a uniformly low-tax state.
Key takeaways
- New Hampshire levies no individual income tax and no general sales tax -- the Interest & Dividends Tax on unearned income was confirmed fully repealed effective January 1, 2025.
- New Hampshire is real, currently the only U.S. state with neither an income tax nor a general sales tax at any level.
- Derry's own effective property tax rate (~1.87%) runs approximately 83% above the national comparison figure -- the real tradeoff behind the headline tax advantages.
- New Hampshire levies real, separate targeted taxes (Meals & Rooms, business-level taxes) -- confirm current rates directly for a specific transaction.
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