New Hampshire Tax Burden
New Hampshire ranks #40 nationally for total tax burden with a combined rate of 6.86%.
Compare with Neighboring States
Is New Hampshire a High-Tax State?
New Hampshire is a relatively low-tax state, ranking #40 out of 50 at 6.86%. Notably, New Hampshire has no state income tax — one of only a handful of states with this benefit. This makes it attractive for high earners, though the burden may shift to property or sales taxes.
Property taxes are a major factor here — at 2.04% effective rate, homeowners in New Hampshire pay significantly more than the national median of ~1.1%. On a $300,000 home, that's approximately $612,000/year in property taxes alone. With a median household income of $80,334, the average New Hampshire resident pays approximately $5,511 per year across all state and local taxes.
Tax Planning Tips for New Hampshire Residents
No state income tax: New Hampshire is one of the few states with zero income tax — your savings are most significant on earned income. Maximize W-2 salary, freelance income, and business profits while living here. However, be aware that the burden may shift to property taxes instead.
Property tax protest: With an effective rate of 2.04%, property tax appeals are worth pursuing in New Hampshire. Homeowners who formally protest their assessed value often achieve reductions of 5–15%. On a $300,000 home, that's a potential savings of $61,200/year. Check your county assessor's deadline — most states allow annual appeals.
No sales tax: New Hampshire has no sales tax — a meaningful advantage for major purchases. Residents save hundreds to thousands annually compared to high-sales-tax states.
For retirees: With no income tax, retirement account withdrawals (401k, IRA, pensions) are not taxed at the state level — a significant benefit for retirees with substantial savings.
All 10 Counties in New Hampshire
| Rank | County | Property Tax | Income Tax | Sales Tax | Total Burden | Nat'l Rank |
|---|---|---|---|---|---|---|
| 1 | Sullivan County | 2.63% | 0.000% | 0.00% | 7.85% | #2158 |
| 2 | Strafford County | 2.16% | 0.000% | 0.00% | 7.80% | #2176 |
| 3 | Cheshire County | 2.44% | 0.000% | 0.00% | 7.60% | #2233 |
| 4 | Merrimack County | 2.16% | 0.000% | 0.00% | 7.24% | #2338 |
| 5 | Hillsborough County | 1.88% | 0.000% | 0.00% | 7.02% | #2398 |
| 6 | Grafton County | 1.96% | 0.000% | 0.00% | 6.69% | #2507 |
| 7 | Rockingham County | 1.71% | 0.000% | 0.00% | 6.59% | #2539 |
| 8 | Coos County | 2.12% | 0.000% | 0.00% | 6.06% | #2669 |
| 9 | Belknap County | 1.59% | 0.000% | 0.00% | 5.83% | #2719 |
| 10 | Carroll County | 1.16% | 0.000% | 0.00% | 4.77% | #2942 |
New Hampshire Tax Burden Summary
New Hampshire ranks #40 for total tax burden in the United States with a combined effective rate of 6.86%. Residents earning $100,000 pay approximately $6,860 in total state and local taxes — including $612,000 in property tax on a $300,000 home, $0 in state income tax, and an estimated $0 in sales tax on $40,000 of taxable spending. While New Hampshire has no state income tax, residents face higher property taxes that partially offset the income tax savings. The absence of income tax makes New Hampshire particularly attractive for high earners, retirees drawing from 401(k) accounts, and business owners with significant pass-through income.
With a median household income of $80,334 and a population of 1,379,610, New Hampshire has 10 counties with tax burdens ranging from 4.77% to 7.85%. As a relatively low-tax state, New Hampshire offers meaningful savings compared to the national average, especially for those relocating from high-tax states in the Northeast or West Coast.