New Hampshire Paycheck Calculator (2026)

New Hampshire has never taxed wages, and as of January 1, 2025 it taxes no personal income at all: the old 5% tax on interest and dividends was phased down and repealed, so retirees and investors now join workers in paying nothing to the state. Nothing is withheld for state paid leave or disability either; the state's paid family leave plan is voluntary and employer-sponsored.

The state also has no general sales tax, which makes it a shopping destination for Massachusetts and Maine residents. What it does have is property tax. Local property taxes fund most of public education and municipal services, and effective rates on owner-occupied homes are among the four or five highest in the country, so the income tax savings are partly recycled into the annual property bill for homeowners. Renters and cross-border workers capture the benefit most cleanly.

The border with Massachusetts is where New Hampshire residents actually pay income tax. Massachusetts has no reciprocity agreement and taxes nonresidents on wages for work performed there, so the tens of thousands of Granite Staters who commute to Boston or Route 128 owe Massachusetts 5% on those days. New Hampshire residents who work in Maine or Vermont face the same rule. Working from home in New Hampshire for a Massachusetts employer generally avoids Massachusetts tax after the pandemic-era rule expired.