Income Taxes in New Hampshire
New Hampshire has no broad-based tax on wages or salaries -- true, longstanding, and unaffected by any recent change -- and its narrower Interest & Dividends (I&D) Tax on unearned investment income was fully repealed effective for taxable periods beginning on or after January 1, 2025, though a real, disclosed, not-yet-enacted bill to partially reinstate it remains pending.
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Learn moreNo tax on wages or salaries -- the real, longstanding headline
New Hampshire levies no broad-based individual income tax on wages, salaries, or earned income of any kind -- a real, longstanding fact unaffected by any recent legislative change. This is one of only a handful of states with no tax on earned income, a genuine, defining draw for New Hampshire relocation, especially for Massachusetts-border in-migrants and high earners.
The Interest & Dividends Tax was fully repealed effective January 1, 2025
New Hampshire's separate, narrower Interest & Dividends (I&D) Tax -- which applied only to unearned investment income (interest and dividends) above modest thresholds ($2,400 individual / $4,800 joint under prior law) -- was phased down from 5% (2022) to 4% (2023) to 3% (2024) and then fully repealed for taxable periods beginning on or after January 1, 2025, per the New Hampshire Department of Revenue Administration's own official confirmation. This record verifies that repeal as current and in effect for tax year 2026.
A real, disclosed, not-yet-enacted reinstatement bill is pending -- HB 503-FN
This record discloses a real, disclosed, NOT-YET-ENACTED reinstatement effort honestly rather than omitting it: HB 503-FN, introduced in the 2025 legislative session, would reinstate a 5% I&D tax (with a substantially higher $20,000 income threshold than the old law's thresholds) for taxable periods ending on or after December 31, 2025. This record verifies that bill had not passed as of this pass's August 2026 research (a similar 2024 proposal, HB 1492-FN, previously failed to advance), so the I&D tax's repealed, zero-rate status remains this record's current, accurate figure -- flagged for re-verification on any future refresh pass.
Social Security and pension income were never taxed, even before the I&D repeal
New Hampshire has no state income tax on Social Security benefits, pension income, or any other form of retirement income -- this was never in question even before the I&D tax's 2025 repeal, since the I&D tax applied only to interest and dividend income, not to Social Security or pension distributions, and New Hampshire has never taxed wages, salaries, or earned income at the state level. New Hampshire does separately levy business-level taxes distinct from individual income tax: a 7.5% Business Profits Tax and a Business Enterprise Tax recently reduced to 0.50% (from 0.55%, effective for taxable periods ending on or after December 31, 2026).
Key takeaways
- New Hampshire has no broad-based tax on wages or salaries -- real, longstanding, and unaffected by any recent change.
- The narrower Interest & Dividends Tax on unearned investment income was fully repealed effective for taxable periods beginning on or after January 1, 2025.
- A real, disclosed, not-yet-enacted bill (HB 503-FN) would reinstate a 5% I&D tax with a $20,000 threshold; it had not passed as of this pass's August 2026 research.
- Social Security benefits and pension/retirement income have never been subject to New Hampshire state income tax.
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