New Hampshire Income Tax

New Hampshire doesn’t have a general income tax, but it does have a tax on interest and dividends.

This post is provided for general information only. Please confirm the details and circumstances of your unique situation with your tax accountant or other appropriate advisor before taking action.

Does New Hampshire have an income tax?

New Hampshire technically doesn’t have a personal income tax. There is an Interest and Dividend Tax that’s effectively an income tax but only on your interest and dividends.

So you won’t have to pay personal income tax on things like:

  • Wages

  • Business income, including as a 1099 contractor

  • Social Security and other retirement income

You will usually have to pay income taxes on things like:

  • Savings account interest

  • Certificate of deposit interest

  • Stock dividends

  • Bond dividends

  • Mutual fund dividends

  • ETF dividends

The dividends and interest tax is not a capital gains tax. If you receive a capital gains payment from a fund, you normally won’t have to pay New Hampshire income taxes on it.

The difference between a capital gain and a dividend is that a dividend is a regular payment for holding an asset, while a capital gain is selling an asset or a profit. When you receive a capital gains distribution from a fund, it’s because the fund sold assets held by the fund at a profit.

What is the New Hampshire state income tax rate?

New Hampshire is actually in the process of phasing out the interest and dividends tax. The tax rate depends on the year.

  • 2022: 5%

  • 2023: 4%

  • 2024: 3%

  • 2025: 2%

  • 2026: 1%

After 2026, there won’t be any New Hampshire income taxes at all for individual taxpayers.

When do you have to pay the dividend and interest income tax?

You generally need to pay the dividends tax if your total gross interest and dividends was at least $2,400 as a single filer or $4,800 as a joint filer.

There is an individual exemption for the first $2,400 in taxable income.

There are additional $1,200 exemptions available for those who are:

  • Age 65 or older

  • Blind

  • Under age 65 and unable to work due to a disability

When are New Hampshire income tax returns due?

New Hampshire state income tax returns are generally due on April 15th. If you will owe $500 or more in income taxes, you need to make estimated tax payments throughout the year.

You generally need to pay 25% of the income taxes you’ll owe on each of April 15th, June 15th, September 15th, and January 15th. Estimated taxes are paid ahead, so you’re paying 12, 9, 6, and 3 months before you have to file your tax return.

Other New Hampshire Taxes

Does New Hampshire have a sales tax?

New Hampshire has no state sales tax or local sales taxes.

How much are new Hampshire property taxes?

New Hampshire property taxes average just over 2%.

Does New Hampshire have an estate tax?

New Hampshire has no estate tax or inheritance tax.

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