New Hampshire — no income tax on wages
New Hampshire does not tax earned income (wages and salaries) — making it effectively a no-income-tax state for most workers. Your paycheck is only reduced by federal income tax and FICA contributions (Social Security 6.2% + Medicare 1.45%). NH is one of only 9 states in the US with no tax on wages.
A worker earning $75,000/year in New Hampshire takes home approximately $60,008 annually — the same as Florida or Texas. This is about $6,800–$8,200 more than an equivalent worker in high-tax states like New York or California. New Hampshire's low tax burden is a major reason for its growing population.
NH interest and dividends tax — eliminated in 2025
New Hampshire previously taxed interest and dividend income at 5%, but this tax was fully eliminated on January 1, 2025. As of 2026, New Hampshire has absolutely no personal income tax of any kind — not on wages, not on investment income.
This makes NH even more attractive for retirees and investors compared to previous years. If you receive dividend income or interest from savings accounts, none of it is taxed by New Hampshire in 2026.
New Hampshire vs neighboring states
New Hampshire's no-income-tax status is a major advantage over neighboring states. Massachusetts has a 5% flat income tax, Vermont has progressive rates up to 8.75%, and Maine has rates up to 7.15%. Many workers choose to live in NH and commute to Massachusetts, particularly Boston.
The tradeoff is that New Hampshire has higher property taxes — among the highest in the US — and relies on a 9% meals and rooms tax and business taxes to fund state services. For workers (especially renters), NH is still a clear financial advantage over neighboring New England states.