New Hampshire Tax Brackets Guide – New Hampshire stands out as one of the most tax-friendly states in the U.S., especially for individuals. If you’re searching for a “New Hampshire tax brackets guide,” you’re likely wondering about state income tax rates, property taxes, or how living in the Granite State affects your overall tax bill. The good news? New Hampshire has no state income tax brackets on wages, salaries, or most earned income—and the former Interest and Dividends Tax was fully repealed effective January 1, 2025.
This comprehensive guide breaks down everything you need to know about New Hampshire taxes in 2026, including federal obligations, property tax rates, business taxes, and why the state ranks among the top for tax competitiveness. Whether you’re relocating, retiring, or planning your finances, this article uses the latest data from official sources like the New Hampshire Department of Revenue Administration (NH DRA) and the Tax Foundation.
New Hampshire Has No State Income Tax Brackets in 2026
Unlike 41 other states, New Hampshire does not impose a broad-based state individual income tax on wages, salaries, or earned income. There are simply no New Hampshire income tax brackets for most residents.
- Wages and salaries (W-2 income): 0% state tax.
- Self-employment and business income: Generally not taxed at the individual level (business entities may face separate taxes—see below).
- Retirement income, pensions, and Social Security: Fully exempt from state tax.
This makes New Hampshire one of only nine states (including Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming) with no individual income tax on wages as of 2026.
The End of the Interest and Dividends Tax: Full Repeal in 2025
New Hampshire previously taxed certain unearned income through the Interest and Dividends (I&D) Tax. Rates were phased down (5% → 4% → 3%), but the tax was fully repealed for taxable periods beginning after December 31, 2024.
- For 2024 (final year): 3% rate applied only to interest and dividends exceeding $2,400 ($4,800 for joint filers), with additional exemptions for seniors and disabled individuals.
- 2025 and beyond: $0 state tax on interest and dividends for individuals.
Prior-year returns (if any) may still be due or eligible for refunds, but no new I&D filings are required for 2025+ tax years.
Federal Income Tax Brackets: What New Hampshire Residents Actually Pay
Since New Hampshire has no state income tax, your primary tax burden comes from federal income taxes. Here are the 2026 federal income tax brackets (for taxes filed in 2027 on 2026 income):
| Tax Rate | Single Filers | Married Filing Jointly | Head of Household |
|---|---|---|---|
| 10% | $0 – $12,400 | $0 – $24,800 | $0 – $17,700 |
| 12% | $12,401 – $50,400 | $24,801 – $100,800 | $17,701 – $67,450 |
| 22% | $50,401 – $105,700 | $100,801 – $211,400 | $67,451 – $105,700 |
| 24% | $105,701 – $201,775 | $211,401 – $403,550 | $105,701 – $201,775 |
| 32% | $201,776 – $256,225 | $403,551 – $512,450 | $201,776 – $256,225 |
| 35% | $256,226 – $640,600 | $512,451 – $768,700 | $256,226 – $640,600 |
| 37% | Over $640,600 | Over $768,700 | Over $640,600 |
These are progressive brackets—only income within each range is taxed at that rate. New Hampshire residents also pay FICA (Social Security and Medicare) taxes, but no state withholding occurs on paychecks.
New Hampshire Property Tax Rates: The Main State Tax Burden
With no income or sales tax, New Hampshire relies heavily on property taxes to fund schools, local services, and infrastructure. The statewide effective property tax rate is approximately 1.41% of assessed home value—one of the higher effective rates nationally, though rankings vary by study.
Property tax rates are set locally and expressed per $1,000 of assessed value. In 2025 (latest available comprehensive data):
- Lowest rates: As low as $2.62–$6.00 per $1,000 (e.g., certain towns in Rockingham or Carroll counties).
- Highest rates: Up to $36.54 per $1,000 in some towns.
- Typical range: $10–$20 per $1,000 in many communities.
Example: A $500,000 home at $15 per $1,000 pays $7,500 annually. Rates vary dramatically by town due to school costs, services, and equalized valuation. Check your specific municipality via the NH DRA’s annual municipal tax rate publications for the most current figures.
New Hampshire offers property tax exemptions and credits for veterans, seniors, disabled residents, and certain low-income homeowners.
Business Taxes in New Hampshire: BPT and BET Explained
If you own or operate a business, New Hampshire does impose two main entity-level taxes (no individual-level tax on business income itself):
- Business Profits Tax (BPT): Flat rate of 7.5% on taxable business profits (for periods ending on or after Dec. 31, 2023). Filing required if gross business income exceeds $109,000 (2025+ threshold).
- Business Enterprise Tax (BET): Flat rate of 0.55% on the enterprise value tax base (compensation + interest + dividends). Filing required if gross receipts or enterprise value base exceeds $298,000 (2025+ threshold).
BET payments can be credited against BPT liability. Multi-state businesses use single-sales-factor apportionment.
Other Taxes in New Hampshire (and What’s Missing)
- Sales tax: 0% statewide—no general sales or use tax.
- Estate or inheritance tax: None.
- Unemployment insurance: Employer-paid (rates vary by experience).
- Meals and rooms tax: 9% on lodging and certain meals (tourist-related).
New Hampshire’s lack of income and sales taxes makes it attractive for retirees, remote workers, and high earners.
Tax Filing Deadlines and Resources for 2026
- Federal returns: Due April 15, 2026 (for 2025 income) or October 15 with extension.
- NH returns: Most individuals have no state return to file. Business returns (BPT/BET) follow federal deadlines with NH-specific forms.
- Official resources: Visit revenue.nh.gov for forms, municipal tax rates, and Technical Information Releases. The Tax Foundation provides excellent state comparisons.
Why New Hampshire Ranks as a Top Tax-Friendly State?
In the Tax Foundation’s 2026 State Tax Competitiveness Index, New Hampshire ranks 3rd overall—thanks to no individual income tax, no sales tax, and a competitive business climate. Property taxes remain the primary trade-off, but many residents find the overall burden lower than in high-income-tax states.
Final Thoughts on the New Hampshire Tax Brackets Guide
New Hampshire’s tax structure is refreshingly simple: zero state income tax brackets, zero sales tax, and a repealed I&D tax. Your main considerations are federal taxes and locally varying property taxes. This guide reflects the most current 2025–2026 data from trusted sources.
For personalized advice, consult a tax professional or the NH DRA directly. Planning a move? Factor in property taxes for your target town and enjoy one of America’s most tax-advantaged states.
Last updated: April 2026. Tax laws can change—always verify with official sources.