Pros and Cons of Living in New Hampshire

New Hampshire's tradeoffs run genuinely, honestly in two directions this record does not flatten: no broad-based tax on wages or salaries, no general sales tax, no tax on interest or dividend income, and a real, standout #1-nationally crime-safety ranking sit against a statewide effective property tax rate among the top 2-4 highest in the nation, a cost of living running 13%-15% above the national average, and genuinely elevated housing costs.

Exploring the idea of moving?

We can connect you with a local real estate professional who knows the area -- no pressure, just a starting point.

Learn more

Pros: no wage-income tax, no sales tax, no investment-income tax, and a standout #1-nationally crime-safety ranking

New Hampshire's headline tax picture is real and genuinely rare: no broad-based tax on wages or salaries of any kind, no general state sales or use tax anywhere in the state, and -- as of a real 2025 repeal this record verifies as current for tax year 2026 -- no tax on interest or dividend income either, following the Interest & Dividends Tax's phase-down (5% in 2022, 4% in 2023, 3% in 2024) and full repeal for taxable periods beginning on or after January 1, 2025. New Hampshire pairs that with a genuinely strong 2026 U.S. News Best States showing this record credits directly: #6 nationally overall, #1 nationally for Crime & Corrections (directly consistent with a real 2024 violent-crime rate roughly 69.3% below the national average), #3 for Natural Environment, #9 for Healthcare (Access ranked #4), and #12 for Education (Elementary & Secondary Education ranked #4). New Hampshire's homeowners insurance runs similarly favorable (a real, disclosed $900-$1,611/year statewide spread, substantially below the roughly $2,868/year national average), and its 2026 unemployment rate ran a real, genuinely low 2.1%-3.4% across sources this pass reviewed.

Cons: a statewide property tax rate among the highest in the nation, and a genuinely elevated cost of living and housing market

New Hampshire's real, defining structural tradeoff sits squarely in property tax: a statewide effective rate this pass's 2026 cross-source research anchors at 1.93% (with a disclosed 1.50%-2.07% spread across sources), among the top 2-4 highest-property-tax states in the country by most rankings -- roughly 1.4x-1.9x the approximately 1.0%-1.1% national average -- a direct, structural consequence of New Hampshire funding schools and municipal services overwhelmingly through local property taxes rather than state income or sales tax revenue. A statewide median annual property-tax bill of approximately $6,667/year (per one aggregator this pass reviewed, not independently cross-corroborated) illustrates that burden in dollar terms. New Hampshire's cost of living ran a real, current 13%-15% above the national average per this pass's research, and its statewide housing costs ran genuinely elevated (a real $522,944-$533,106 range depending on source, with a real, dated $580,000 single-family median-sale-price record set in July 2026) -- meaningfully above the roughly $355,000-$375,000 range commonly cited nationally in 2026.

New Hampshire's weaker sub-rankings and North Country economic-transition story are further real, disclosed cons

New Hampshire's otherwise strong Education and Healthcare category rankings each mask a real, disclosed weaker sub-component this record does not soften: Higher Education ranked a real #40 nationally (even as Elementary & Secondary Education ranked #4), and Healthcare Quality ranked a real #34 nationally (even as Healthcare Access ranked #4). New Hampshire's White Mountains/North Country region also carries a real, genuine, disclosed population-decline and economic-transition story: Berlin, NH -- a former pulp-and-paper mill town whose population peaked above 20,000 in the 1930s and now runs roughly half that -- lost a real, disclosed 158 residents (1.7%) between 2020 and 2024 following the 2006 closure of its final pulp mill (more than 350 direct job losses), layered onto Coos County's comparatively higher property taxes.

The honest bottom line

New Hampshire rewards movers and retirees prioritizing its rare, real combination of no wage-income tax, no sales tax, no investment-income tax, and a standout #1-nationally crime-safety ranking -- and it demands direct, honest budgeting for a genuinely high statewide property-tax burden (confirmed by mill rate for any specific target town), an elevated cost of living and housing market, and a real, not-yet-enacted bill (HB 503-FN) that could partially reinstate a narrower investment-income tax, rather than assuming New Hampshire's genuine tax advantages describe its full financial picture.

Key takeaways

Want to know what your budget actually buys here?

Tell us a bit about what you're looking for and we'll connect you with someone local who can walk you through real numbers.

Get local guidance

Read the full New Hampshire overview for the complete picture, or explore individual cities and towns we've researched.

Planning a move?

Tell us what you're looking for and we'll connect you with a local expert who can help you make it happen.

Talk to a local expert
Last reviewed: 2026-08-28. Independent research; not financial, tax, or legal advice -- confirm current figures with a local professional before making a decision.