New Hampshire state taxes at a glance
| Individual income tax | No broad individual income tax on wages |
|---|---|
| Rate structure | No tax on wages, and the state’s tax on interest and dividends was repealed for periods beginning after December 31, 2024. Businesses pay a Business Profits Tax; there is an 8.5% Meals and Rooms Tax and no general sales tax. |
| Tax agency | New Hampshire Department of Revenue Administration (DRA) |
| Main individual return | None for most individuals (federal return only). Interest and Dividends Tax returns may still be due for 2024 and earlier periods. |
| Local income taxes | No local income taxes. Cities and towns rely heavily on local property taxes. |
| Sales tax | No general sales tax. An 8.5% Meals and Rooms (Rentals) Tax applies to taxable meals, hotel rooms and motor-vehicle rentals. |
| Property tax | New Hampshire relies heavily on local property taxes for schools and services, and the burden is among the highest in the country. Assessments and exemptions are handled by your town or city. |
| Retirement & Social Security | No state tax on wages, Social Security or retirement income. The former interest and dividends tax has been repealed for periods beginning after 2024. |
Verify current-year figures: state rates, brackets, credits and filing rules change. Treat this page as a starting orientation and confirm details on the New Hampshire Department of Revenue Administration (DRA) website.
How New Hampshire income tax works
New Hampshire has no tax on wages and no general sales tax, which is why it is often described as a no-tax state. That shorthand needs updating: until recently the state taxed interest and dividends. The Department of Revenue Administration says the Interest and Dividends Tax was repealed for taxable periods beginning after December 31, 2024, so most individuals no longer owe it for 2025 and later; returns and payments for 2024 and earlier periods may still be due. Tax Foundation counts New Hampshire among the eight states with no individual income tax at all.
The state raises revenue in other ways. The Business Profits Tax is 7.5%, with a filing threshold of generally more than $109,000 in gross business income for 2025 according to DRA. The Meals and Rooms (Rentals) Tax is 8.5% on taxable meals, hotel and room rentals and motor-vehicle rentals; operators must register, collect and remit it monthly. That tax is how New Hampshire taxes visitors without a general sales tax; Tax Foundation notes New Hampshire’s lack of a sales tax draws shoppers across the Vermont border.
The biggest cost for residents is usually property tax. Because the state has neither an income tax nor a sales tax, cities, towns and school districts fund most services through local property taxes, which are among the highest in the country. Exemptions for veterans, older residents and others are applied locally. If you live in New Hampshire but work in Massachusetts or Maine, you may owe that state’s nonresident income tax on work done there; see our no-income-tax states guide for the general rule.
Filing your New Hampshire return and free options
Most New Hampshire residents file only a federal return, so the free-filing question is federal: see free filing options and VITA. You can usually skip any paid “state” add-on in software. If you owe an Interest and Dividends Tax return for 2024 or earlier, DRA’s site explains how to file or pay it.
Businesses should check DRA’s guidance on the Business Profits Tax and Business Enterprise Tax filing thresholds and on registering for the Meals and Rooms Tax if they sell prepared food or rent rooms. If you work remotely for an out-of-state employer, see our filing guide for how state income tax follows where the work is performed.
For the federal side, see our guides to free federal filing options and the complete guide to filing taxes.
Things New Hampshire residents often ask about
- Interest and dividends tax repealed: for periods beginning after 2024; older periods may still be due.
- Meals and Rooms Tax is 8.5%: it applies to restaurants, lodging and motor-vehicle rentals, not to groceries.
- Property taxes carry the load: bills are set locally and are among the highest in the country.
- Business Profits Tax: 7.5%, with filing thresholds tied to gross business income.
- Commuters: New Hampshire residents who work in another state may owe that state’s nonresident income tax.
Official New Hampshire links
- New Hampshire Department of Revenue Administration
- DRA: repeal of the Interest and Dividends Tax
- DRA: Meals and Rooms (Rentals) Tax
- Federation of Tax Administrators: State tax agencies
Frequently asked questions
Does New Hampshire have an income tax?
No tax on wages, and the state’s tax on interest and dividends was repealed for periods beginning after December 31, 2024.
Does New Hampshire have a sales tax?
No general sales tax. It has an 8.5% Meals and Rooms (Rentals) Tax on meals, hotel rooms and motor-vehicle rentals.
Why are New Hampshire property taxes high?
With no income or sales tax, cities, towns and school districts rely on local property taxes to fund most services. Rates and exemptions are set locally.
General information only — not tax, legal or financial advice. Tax figures change every year; verify the current numbers at IRS.gov or with a qualified professional. Read the full disclaimer.