New Hampshire retirement taxes at a glance (2026)
| State income tax | No state income taxNew Hampshire has no tax on wages, and its Interest and Dividends Tax was repealed as of January 1, 2025. |
|---|---|
| Social Security | Not taxedSocial Security is not taxed. |
| Pensions | Not taxedPensions are not taxed. |
| 401(k) and IRA withdrawals | Not taxedIRA and 401(k) withdrawals are not taxed. Interest and dividends are also no longer taxed since 2025. |
| Government pensions | Not taxedGovernment pensions are not taxed. |
| Military retirement pay | Not taxedMilitary retirement pay is not taxed. |
| Estate tax | No |
| Inheritance tax | No |
| Property tax help for seniors | Towns may offer an elderly exemption for residents 65 and older who have lived in the state 3 consecutive years. Income limits start at $13,400 (single) or $20,400 (married), and asset limits are at least $35,000 excluding the home. |
| Sales tax | New Hampshire has no general sales tax. Property taxes are high (about 1.5% average effective rate in 2024). |
Recent changes and good to know
- The 3% Interest and Dividends Tax was repealed effective January 1, 2025 (accelerated from 2027 by HB 2 of 2023). Returns for 2024 and earlier were still due.
How to lower your retirement taxes in New Hampshire
- Mix your income sources. Roth IRA withdrawals are tax-free at the federal level and generally in New Hampshire too, so a Roth conversion before retirement can cut state tax later. Try the Roth conversion calculator.
- Watch federal Medicare costs. Large IRA withdrawals can raise your Medicare premiums. Check the 2026 IRMAA brackets.
- Think about your heirs. See what your IRA will really cost your family with the Family Tax Rate calculator.
- Comparing states? These have no state income tax: Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, Wyoming.
Frequently asked questions
Does New Hampshire tax retirement income?
No. Since the Interest and Dividends Tax ended on January 1, 2025, New Hampshire taxes no form of retirement income.
Does New Hampshire tax Social Security?
Social Security is not taxed.
Does New Hampshire tax pensions?
Pensions are not taxed.
Does New Hampshire tax 401(k) and IRA withdrawals?
IRA and 401(k) withdrawals are not taxed. Interest and dividends are also no longer taxed since 2025.
Does New Hampshire tax military retirement pay?
Military retirement pay is not taxed.
Sources (last verified 2026)
- Repeal of NH Interest and Dividends Tax Now in Effect — NH Department of Revenue Administration (2025-01)
- NH interest and dividends tax repealed as of Jan. 1 — NH Business Review (2025-02-17)
- New Hampshire Tax Summary for 2026 — AARP (2026-04-22)
Educational content only, not tax, legal or investment advice. Plans and tax laws change; confirm details with your employer's plan documents or your state revenue department. Smart Financial Lifestyle is not affiliated with any employer named on this site.