2026 New Hampshire State Income Tax

New Hampshire does not collect a state income tax on wages. There is no state W-4 to file, no state withholding line on your paystub, and no New Hampshire state return for wage income at the end of the year. Federal income tax is your only paycheck-based tax obligation.

The 2026 New Hampshire rate

0% (no state income tax)

Why New Hampshire has no income tax

New Hampshire has historically been a partial-income-tax state: from 1923 to 2024, it taxed interest and dividend incomeat a 5% rate (the "I&D tax"), even though wage income was never taxed. The I&D tax was phased down starting in 2023 and fully repealed effective January 1, 2025. So for 2026, New Hampshire has no state income tax of any kind on wage, interest, or dividend income.

New Hampshire funds itself primarily from property taxes (which are among the highest in the country on a per- capita basis), the Business Profits Tax and Business Enterprise Tax on businesses, room-and-meals taxes, and various selective excise taxes. There is no general sales tax, which combined with no income tax makes New Hampshire one of the lowest-taxed states for wage earners who own moderately-valued property.

What about interest and dividends?

New Hampshire historically taxed only interest and dividends; the I&D tax was fully phased out in 2025. Wages have never been taxed.

For most filers (anyone whose income is W-2 wages, interest in a normal savings account, or a 401(k)) the short answer remains the same: New Hampshire state tax owed on your paycheck is $0.

What this means for your withholding

When you select New Hampshire in the Breakeven calculator, the state row on your projection will show $0 owed and $0 withheld — you can't under-withhold for a tax that doesn't exist. Your federal projection covers your entire paycheck-based tax bill. The W-4 is the only payroll form you need to worry about.

How New Hampshire compares to states with income tax

New Hampshire funds its government through other sources: typically property taxes, sales taxes, severance taxes on natural resources, or specific industry levies. Total state and local tax burden in a no-income-tax state is not necessarily lower than in a state with an income tax; the mix is just different. For a take-home-pay comparison across states, model your federal projection in the calculator and compare it to federal brackets alone.

Sources

• New Hampshire Department of Revenue — official income-tax landing page (or equivalent).
• Tax Foundation — State Income Tax Rates — cross-reference for the no-income-tax classification.

Note on state payroll surcharges. New Hampshire does not collect statewide income tax, disability, or paid-leave premiums on wages. (Washington is the only no-income-tax state with statewide payroll programs the calculator currently models.) See the methodology for the full list of what is included and excluded.

Last cross-checked on 2026-04-28.

Canonical reference: https://www.breakeven.tax/brackets/2026/new-hampshire