NEW HAMPSHIRE PAYCHECK CALCULATOR
Our New Hampshire Paycheck Calculator 2026 gives Granite State workers a precise, verified breakdown of every paycheck — and in New Hampshire, that calculation is remarkably simple. New Hampshire has no state income tax on wages $0 STATE TAX and never has. But 2026 marks a new milestone: following the full repeal of the Interest and Dividends (I&D) Tax effective January 1, 2025, New Hampshire now imposes no individual income tax of any kind — not on wages, not on investment income, not on retirement income, not on capital gains.
The result makes New Hampshire genuinely unique among all 50 states. ONLY STATE IN AMERICA New Hampshire is the only state in the United States with no broad-based income tax AND no general sales tax. No other state achieves both. Wyoming and Nevada have no income tax but charge sales tax. Oregon has no sales tax but taxes income up to 9.9%. New Hampshire stands alone. The Tax Foundation ranked New Hampshire #3 in its 2026 State Tax Competitiveness Index — the highest of any New England state by an enormous margin.
A New Hampshire paycheck has three mandatory deductions: federal income tax, Social Security, and Medicare. Nothing else. No New Hampshire withholding line. No state return in April. See how New Hampshire compares to New England and Northeast neighbors at our USA Paycheck Calculator hub, or compare directly with Massachusetts, Vermont, Maine, or Connecticut.
Calculate Net Pay
COMPARE NEW ENGLAND & NORTHEAST PAYCHECK CALCULATORS
Every Deduction on a New Hampshire Paycheck in 2026
New Hampshire's paycheck deduction list is among the shortest of any state in the country — three items, no more. There is no NH state income tax line, no NH withholding to reconcile, and no NH state return to file in April. Whether you work in Manchester, Concord, Nashua, Portsmouth, or anywhere across the Granite State, every worker sees the same three deductions:
- Federal Income Tax — Applied using the 2026 progressive federal schedule (10%–37%) after the federal standard deduction reduces taxable income. Single filers deduct $16,100, MFJ filers deduct $32,200, and HOH filers deduct $24,150 before federal brackets apply. For New Hampshire residents, this is the only income tax they pay — there is no state layer on top.
- Social Security — 6.2% of gross wages up to the 2026 annual wage base of $176,100. Wages above this ceiling are Social Security-exempt for the remainder of the calendar year.
- Medicare — 1.45% on all earned income with no cap. An additional 0.9% Medicare surtax applies to individual wages exceeding $200,000 per year (or $250,000 for MFJ).
That is the complete list. A New Hampshire W-2 shows three withholding boxes — federal income tax, Social Security, and Medicare — where residents of neighboring Massachusetts, Vermont, Maine, Connecticut, and Rhode Island would see a fourth box for state income tax. That absent fourth box is worth thousands of dollars per year at typical working incomes.
The Interest & Dividends Tax — 102 Years, Then Gone
New Hampshire's complete income-tax-free status in 2026 is a recent achievement. For 102 years — from 1923 until January 1, 2025 — New Hampshire levied an Interest and Dividends (I&D) Tax on passive investment income. Understanding what it was, how it ended, and what it means for 2026 is important context:
| Tax Year | I&D Tax Rate | Applied To | Wages & Salaries Taxed? |
|---|---|---|---|
| Pre-2023 | 5% | Interest and dividend income above $2,400 (Single) / $4,800 (MFJ) | Never |
| 2023 | 4% (phased down) | Same as above | Never |
| 2024 | 3% (phased down) | Same as above | Never |
| 2025–2026+ | Repealed (0%) | N/A — tax no longer exists | Never |
The I&D Tax never touched wages or salaries — that was the crucial distinction that set New Hampshire apart from true income-tax states. The tax only applied to residents receiving interest from bonds or savings accounts, and dividends from stocks or mutual funds, above the exemption threshold. Wage earners were entirely unaffected. The repeal under HB 2 (2023), signed by Governor Chris Sununu and accelerated from an original 2026 sunset to January 1, 2025, removed even that narrow levy. New Hampshire now imposes no individual income tax of any kind.
New Hampshire vs New England Neighbors — Take-Home at $70,000
New Hampshire's no-income-tax advantage is most starkly visible in comparison with its New England neighbors, nearly all of which have substantial state income taxes:
| State | Tax Structure | State Tax on $70k (Single) | Est. Annual Net |
|---|---|---|---|
| New Hampshire | No state income tax | $0 | ~$57,873 |
| Massachusetts | Flat 5% (wages) | ~$3,057 | ~$54,816 |
| Vermont | Progressive up to 8.75% | ~$3,850 | ~$54,023 |
| Maine | Progressive up to 7.15% | ~$3,450 | ~$54,423 |
| Connecticut | Progressive up to 6.99% | ~$3,200 | ~$54,673 |
| Rhode Island | Progressive up to 5.99% | ~$2,750 | ~$55,123 |
| New York | Progressive up to 10.9% | ~$3,350 + local | ~$54,523 |
At $70,000, New Hampshire workers take home approximately $3,057 more per year than Massachusetts workers, $3,850 more than Vermont workers, and over $3,450 more than Maine workers — purely from the absence of state income tax. At higher incomes the gap widens significantly: at $150,000, the New Hampshire advantage over Massachusetts exceeds $7,000 per year.
This comparison is why New Hampshire has experienced decades of population inflow from neighboring Massachusetts — a well-documented migration pattern sometimes called the "New Hampshire Advantage." Commuters who work in Massachusetts but live in New Hampshire face Massachusetts income tax on Massachusetts-sourced income, but NH residents working remotely for out-of-state employers owe nothing to New Hampshire.
The New Hampshire Advantage — And the Trade-Off
New Hampshire's no-income-tax, no-sales-tax position is genuinely powerful for workers — but it comes with a significant counterweight that every prospective resident must account for:
| Tax Type | New Hampshire | National Comparison |
|---|---|---|
| State income tax on wages | $0 — None | Most states: 3%–9%+ |
| State sales tax | $0 — None | Most states: 4%–7%+ |
| Property tax (effective rate) | ~1.41% (4th highest US) | National avg: ~1.1% |
| Median annual property tax bill | ~$6,707 | National median: ~$3,211 |
| Meals & Rentals Tax | 8.5% on restaurant meals & lodging | Varies (embedded in sales tax elsewhere) |
| Gas tax | 23.83 cents/gallon | Federal avg: ~28 cents/gallon |
| Estate / inheritance tax | None | 17 states levy one |
The property tax burden is the defining trade-off of living in New Hampshire. Homeowners in Rockingham County — the state's most populous — pay a median of approximately $7,512 per year in property tax. Even in lower-rate Coos County in the rural north, median bills run about $3,511 annually. Renters are partially insulated from this, as property tax costs are embedded in rent — but the effect is still real.
For workers who rent and do not own property, New Hampshire's tax structure is nearly as favorable as any state in the country: no income tax, no sales tax, modest gas tax, no estate tax. For homeowners, the calculus is more nuanced and depends heavily on which municipality they live in and the assessed value of their property.
Remote Workers in New Hampshire — A Special Advantage
New Hampshire has become a significant destination for remote workers, particularly those with employers based in high-tax states. The reason is simple: New Hampshire has no income tax, so remote workers living in New Hampshire and working for out-of-state employers owe no New Hampshire income tax on their wages — regardless of where the employer is headquartered.
| Scenario | NH Income Tax Owed | Notes |
|---|---|---|
| NH resident, remote for MA employer | $0 NH tax | MA may attempt to tax under its own rules — see MA "convenience of employer" rule |
| NH resident, remote for NY employer | $0 NH tax | NY may assert tax under its convenience doctrine |
| NH resident, remote for CA employer | $0 NH tax | CA taxes based on source; consult CA rules |
| NH resident, remote for TX/FL/NV employer | $0 NH tax | No state income tax on either end — ideal scenario |
| NH resident working physically in MA | $0 NH tax | MA taxes those wages; NH provides no credit (NH has no income tax to credit against) |
The Massachusetts "convenience of employer" doctrine has been a source of tension — Massachusetts historically taxed NH residents working remotely for MA employers during COVID-19 emergency rules, which New Hampshire legally challenged. The emergency rules expired in 2021. For 2026, NH residents working remotely for Massachusetts employers from their New Hampshire homes owe Massachusetts tax only on days physically worked in Massachusetts.
New Hampshire's Revenue Model Without Income or Sales Tax
How does New Hampshire fund state government without the two revenue sources most states consider essential? The answer lies in a diversified mix of consumption taxes, business taxes, property taxes, and fees:
| Revenue Source | Rate / Structure |
|---|---|
| Property taxes (local level) | ~$20–$35 per $1,000 assessed value (varies by municipality) |
| Meals & Rentals Tax | 8.5% on restaurant meals, hotel rooms, car rentals |
| Business Profits Tax (BPT) | 7.5% on business net income over $92,000 gross receipts |
| Business Enterprise Tax (BET) | 0.55% on enterprise value (compensation + interest + dividends paid) |
| Real Estate Transfer Tax | $0.75 per $100 of property value (buyer and seller each) |
| Tobacco tax | $1.78 per pack of 20 cigarettes |
| Gas tax | 23.83 cents per gallon |
| Communications services tax | 7% on telecommunications services |
| Electricity consumption tax | $0.00055 per kilowatt-hour |
2026 Federal Tax Brackets for New Hampshire Workers
Since New Hampshire workers pay no state income tax, federal income tax is the only income tax they face. The federal standard deduction increased significantly for 2026: Single filers deduct $16,100, MFJ filers deduct $32,200, and HOH filers deduct $24,150. After those deductions, Single filer taxable income passes through these federal tiers:
- 10% on the first $11,925 of federal taxable income
- 12% from $11,925 to $48,475
- 22% from $48,475 to $103,350
- 24% from $103,350 to $197,300
- 32% from $197,300 to $250,525
- 35% from $250,525 to $626,350
- 37% on federal taxable income above $626,350
A $70,000 Single filer in New Hampshire owes federal income tax on $53,900 ($70,000 − $16,100 standard deduction). The first $11,925 is taxed at 10% ($1,192.50), the next $36,550 at 12% ($4,386), and the remaining $5,425 at 22% ($1,193.50) — totaling approximately $6,772 in federal income tax. Added to $4,340 in Social Security and $1,015 in Medicare, total deductions are roughly $12,127 — leaving a take-home of about $57,873 per year, or $4,823 per month.
New Hampshire Paycheck Calculator FAQs
Does New Hampshire have a state income tax in 2026?
No. New Hampshire has no state income tax on wages, salaries, investment income, retirement income, or any other individual income in 2026. New Hampshire never taxed wages — and as of January 1, 2025, the Interest and Dividends Tax (the only remaining state-level tax on individual income) was fully repealed under HB 2 (2023). No New Hampshire withholding, no New Hampshire individual income tax return, no state tax of any kind on personal income.
What happened to the New Hampshire Interest and Dividends Tax?
The I&D Tax — enacted in 1923 — taxed passive investment income (interest and dividends above $2,400 per individual) at 5% for over 80 years. House Bill 2, signed by Governor Chris Sununu in 2023, set a phase-down and accelerated repeal: the rate fell from 5% (pre-2023) to 4% (2023) to 3% (2024), then was eliminated entirely effective January 1, 2025. The repeal was originally scheduled for 2026 but was accelerated. As of 2026, no I&D Tax exists in any form. Taxpayers with 2024 I&D Tax obligations must still file and pay for that prior year.
How much will I take home on a $70,000 salary in New Hampshire?
Filing as Single on $70,000, federal taxable income is $53,900 after the $16,100 standard deduction. Federal tax is approximately $6,772. Combined with $4,340 in Social Security and $1,015 in Medicare, estimated annual take-home is about $57,873, or roughly $4,823 per month. There is no New Hampshire state income tax deduction of any amount.
Is New Hampshire the only state with no income tax and no sales tax?
Yes. New Hampshire is uniquely the only state in America with no broad-based individual income tax and no general sales tax. Alaska has no income tax or statewide sales tax but allows local governments to levy sales taxes. Oregon has no sales tax but taxes income. Wyoming has no income tax but charges a 4% sales tax. New Hampshire stands alone in eliminating both — earning it the #3 spot on the Tax Foundation's 2026 State Tax Competitiveness Index.
Do I need to file a New Hampshire state tax return?
No individual income tax return is required for New Hampshire residents for tax year 2026. There is no NH state withholding to reconcile and no NH refund to claim. New Hampshire residents with prior-year (2024 or earlier) I&D Tax obligations must file those returns, but the 2026 return (DP-10) does not exist — the tax has been repealed. NH residents only file federal Form 1040 with the IRS.
Does New Hampshire tax Social Security or retirement income?
No. New Hampshire does not tax Social Security benefits, pension income, 401(k) distributions, IRA withdrawals, military retirement pay, or any other form of retirement income. With the I&D Tax repealed, even interest and dividends from retirement accounts are completely exempt from New Hampshire taxation. NH retirees owe no state income tax of any kind.
Run your New Hampshire estimate again any time: New Hampshire Paycheck Calculator 2026