The facts on New Hampshire’s Tax Climate

  • 5%
    Individual Income Tax
  • 8.5%
    Corporate Income Tax
  • 0%
    Sales and Excise Taxes
  • $2,625
    Property Taxes

New Hampshire‘s Individual Income Tax System 
New Hampshire’s personal income tax system is one of the nation’s most simple and inexpensive systems. With no separate tax brackets, New Hampshire’s 5% flat income tax applies only to dividend and interest income. As a result many citizens have little or no income tax liability. New Hampshire’s 2010 state-level individual income tax collections were $63 per person, which ranked 42nd highest nationally.

Tax Freedom Day Arrives on April 16 in New Hampshire

Tax Freedom Day is the day when Americans finally have earned enough money to pay off their total tax bill for the year. In 2012, New Hampshire taxpayers work until April 16 (ranked 20th nationally) to pay their total tax bill. The Tax Freedom Days of neighboring states are: Massachusetts, April 22 (ranked 8th nationally); Vermont, April 19 (ranked 13th nationally); and Maine, April 8 (ranked 39th nationally).

New Hampshire’s State and Local Tax Burden Among Nation’s Lowest

Throughout the past three decades, New Hampshire’s state and local tax burden percentage has consistently ranked among the nation’s lowest, currently estimated at 8.0% of income (44th nationally), below the current national average of 9.8%. Compared to the 1977 data, New Hampshire had a rate of 8.8% (42nd nationally), increasing 0.8% overall. Currently residents pay $3,765 per capita in state and local taxes.
New Hampshire’s State and Local Tax Burden, 1977-Present
Other States’ State/Local Tax Burdens
Map of U.S. Showing all State’s Burdens and Ranks
Historical Chart Comparing All States’ State/Local Tax Burdens from 1977 to 2009

New Hampshire’s 2013 Business Tax Climate Index Ranks 7th

New Hampshire ranks 7th in the Tax Foundation’s State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes; individual income taxes; sales taxes; unemployment insurance taxes; and taxes on property, including residential and commercial property. The ranks of neighboring states are as follows: Vermont (47th), Maine (30th), and Massachusetts (22nd).

50-State Comparison of Business Tax Climates (data only)
2013 State Business Tax Climate Index (full study)