Retirement Taxes in New Hampshire (2025)
Very tax-friendly. New Hampshire has no state income tax, so Social Security, pensions and every dollar you withdraw from a 401(k) or IRA arrive untaxed at state level.
Seeded with roughly 10% — about 10% effective federal plus an estimated 0% New Hampshire tax on retirement withdrawals. Change it to your own rate.
What New Hampshire taxes in retirement
| State income tax | None — the interest and dividends tax was repealed from 2025 |
|---|---|
| Social Security | Not taxed |
| 401(k) and IRA withdrawals | Not taxed |
| Pensions | Not taxed |
| Estate or inheritance tax | None |
| Average combined sales tax | 0% |
| Average effective property tax | 1.61% of home value |
From 2025 New Hampshire taxes no income at all, having repealed the interest-and-dividends tax that used to catch retirees living on a portfolio. There is no sales tax either — the entire burden sits in property tax, which is among the highest in the country.
What the state tax actually costs you
Nothing. On a $500,000 balance withdrawn at $2,500 a month, federal tax alone brings the money down to about 18.8 years, and New Hampshire adds none of its own. Every dollar of state tax a retiree avoids is a dollar that stays invested and compounds, which is why the difference between states widens over a long retirement rather than staying flat.
The taxes that are not income tax
Retirees feel sales and property tax more than working-age households do, because a larger share of a fixed income goes on spending and on staying in a house that is already owned. New Hampshire charges no sales tax at all and levies an average effective property tax of about 1.61% of a home's value, which is above the national average.
There is no state estate or inheritance tax, so only the federal estate tax applies and its exemption is high enough that almost no estate owes it.
Should you move for the tax?
Compare the whole burden rather than one line of it. States without an income tax raise the money elsewhere — Texas and New Hampshire through property tax, Tennessee and Washington through sales tax — so the saving is often smaller than the headline suggests. Run your own numbers in the calculator above, then look at what the same house costs in each state, what insurance costs, and how far you would be from family and from the specialists you already use.
Establishing residency is also a formal exercise, not a preference: high-tax states audit departing retirees on days present, driver's licence, voter registration, where the primary home is, and where a doctor and a dentist are. Half-measures lose.
Frequently asked questions
Does New Hampshire tax Social Security benefits?
Not taxed. Your benefit may still be taxable federally once provisional income crosses the limits — see is Social Security taxable.
Does New Hampshire tax 401(k) and IRA withdrawals?
Not taxed. Pensions are treated separately — Not taxed.
Is New Hampshire a good state to retire in for taxes?
Very tax-friendly on income tax. There is no state income tax at all, so withdrawals, pensions and Social Security are untouched. There is no sales tax and effective property tax about 1.61% of home value. Estate or inheritance tax: none.
Does New Hampshire have an estate or inheritance tax?
No. New Hampshire levies neither an estate tax nor an inheritance tax, so only the federal estate tax applies, and its exemption is high enough that very few estates owe anything.
Other tax-friendly states
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SavingsLast calculators are educational estimates. They assume a constant average return and steady inflation; real markets are volatile and sequence-of-returns risk can shorten how long money lasts. Nothing here is financial, investment, tax, or legal advice. Consult a qualified professional before making decisions.
Reviewed for the 2025 tax year. Several states are part-way through scheduled rate cuts or phase-outs, and thresholds are often indexed annually — confirm current figures with the New Hampshire tax agency (listed at taxadmin.org) or a tax professional before acting. The effective-rate estimate is a planning figure, not a filing figure.