NEW HAMPSHIRE PAYCHECK CALCULATOR
New Hampshire finished a decades-long tax phase-out on January 1, 2025, and the state hasn’t been the same since, at least on the Tax Foundation’s scorecard. Once the Interest and Dividends Tax hit zero, New Hampshire became the only state in the country with no individual income tax and no state or local sales tax at the same time. That combination pushed it from 6th to 3rd place on the 2026 State Tax Competitiveness Index in a single year, jumping past states that have never taxed income at all.
A New Hampshire paycheck reflects that history directly. Wages have never been taxed here, not before the repeal and not after it, so the only deductions you’ll actually see are federal: income tax, Social Security, and Medicare. There’s no state withholding line, no state disability insurance, and no local income tax anywhere in the state. If you’re comparing New Hampshire to where you live now, check the Massachusetts paycheck calculator and Maine paycheck calculator for the two states most New Hampshire commuters cross into for work, the Vermont paycheck calculator for a third New England neighbor, or the Florida paycheck calculator to see how another no-income-tax state structures things differently.
2026 New Hampshire Paycheck Calculator $0 State Tax
Enter your pay details below to estimate your federal tax, FICA withholding, and take-home pay.
Estimate only, based on 2026 federal tax brackets and standard deductions (IRS Rev. Proc. 2025-32), a 6.2% Social Security rate up to the $184,500 wage base, and the 1.45%/2.35% Medicare rate. New Hampshire state tax on wages is $0 for every filer. Does not include pre-tax deductions like a 401(k) or health premiums, or local town fees. Consult a tax professional for exact withholding.
Every Deduction on a New Hampshire Paycheck
- Federal Income Tax: Withheld based on your W-4, taxable income, and filing status, using the 2026 federal brackets (10% to 37%).
- Social Security: A flat 6.2% of wages, up to the 2026 wage base of $184,500. Withholding stops once you cross that amount, capping the max employee contribution at $11,439.
- Medicare: 1.45% of all wages with no cap, plus an extra 0.9% on wages above $200,000 (single/HOH) or $250,000 (married filing jointly), which your employer doesn’t match.
- New Hampshire State Income Tax: $0. Wages have never been taxed in New Hampshire, so there’s nothing to withhold.
- Interest and Dividends Tax: $0, and fully repealed. This tax never applied to wages anyway, only to investment income, and it hit zero for good starting with the 2025 tax year.
- State Disability Insurance / Paid Family Leave / Local Income Tax: None. New Hampshire doesn’t run any of these programs at the state or municipal level.
The End of New Hampshire’s Interest and Dividends Tax
New Hampshire’s tax identity has always been built around not taxing wages, but for over a century it did tax something else: interest and dividend income above a modest threshold, through the Interest and Dividends Tax first enacted in 1923. That tax never touched a paycheck, but it applied to residents earning more than $2,400 in dividend and interest income as an individual, or $4,800 filing jointly. In 2023, Governor Chris Sununu signed House Bill 2, which took a repeal that was originally scheduled for 2026 and moved it up a full year.
| Tax Period | Interest & Dividends Tax Rate |
|---|---|
| Periods ending before Dec. 31, 2023 | 5% |
| Periods ending on/after Dec. 31, 2023 | 4% |
| Periods ending on/after Dec. 31, 2024 | 3% |
| Periods beginning on/after Jan. 1, 2025 | 0% (fully repealed) |
Source: New Hampshire Department of Revenue Administration, HB 2 (Chapter 79, Laws of 2023).
The Tax Foundation flagged this as a bigger deal than it might sound. New Hampshire didn’t just remove a shrinking tax, it removed the entire compliance and filing apparatus that came with it, and that pushed the state from 6th to 3rd place overall on the 2026 State Tax Competitiveness Index in one jump. Combined with having no sales tax, New Hampshire is now the only state with zero income tax and zero sales tax at the state and local level at the same time.
New Hampshire vs. Other States at $70,000 (Single Filer)
Here’s how a $70,000 salary breaks down for a single filer with no dependents in New Hampshire compared to the three New England states people crossing the border most often check against.
| State | State Income Tax | Estimated Net Pay |
|---|---|---|
| New Hampshire | $0 | $58,075 |
| Vermont | ~$2,386 (progressive, after ~$11,500 in deductions/exemptions) | ~$55,689 |
| Maine | ~$3,088 (progressive, after $16,100 standard deduction and $4,700 exemption) | ~$54,987 |
| Massachusetts | ~$3,280 (flat 5%, after $4,400 personal exemption) | ~$54,795 |
Federal tax and FICA are identical across all four states at this income level ($6,570 federal, $5,355 FICA). Only the state income tax line changes. Vermont and Maine figures use published bracket structures that carried some source variation during research; confirm exact current-year deduction and bracket amounts before relying on these for filing.
New Hampshire’s Tax Trade-Offs, Honestly
| Tax Type | New Hampshire | National Context |
|---|---|---|
| Individual Income Tax | 0% | Most states tax wages; New Hampshire is one of nine that don’t |
| Sales Tax | None | Only five states have no state sales tax; New Hampshire also skips local sales tax entirely |
| Effective Property Tax Rate | 1.50% | Well above the national average effective rate of about 0.89% |
| Estate / Inheritance Tax | None | Most states also have none; a minority of states still levy one |
The honest picture: New Hampshire’s income tax and sales tax situation is about as good as it gets nationally. Property tax is the clear trade-off, and it’s not a small one. The state leans on property tax for close to 60% of its total state and local tax revenue, which is why New Hampshire shows up on nearly every list of the highest property tax states in the country. If you’re a renter or don’t own property, the math looks very different than if you’re a homeowner budgeting for an annual bill that can run into the thousands even on a modest house.
Commuting Across the Border: What Actually Applies
New Hampshire’s location makes cross-border work common, especially for people who live in New Hampshire and commute into Massachusetts or Maine for a job, or the reverse. The general rule is that you pay income tax to the state where the work is physically performed, not necessarily where you live. That means a New Hampshire resident commuting into Boston can still owe Massachusetts income tax on wages earned there, even though New Hampshire itself charges nothing.
Retirees moving to New Hampshire for the no-income-tax advantage should also budget property tax into the decision from day one, since it’s the piece of the puzzle that replaces what other states collect through income tax.
2026 Federal Tax Brackets: A Worked Example
With no state tax on wages in New Hampshire, your federal bracket is effectively the whole story for a W-2 employee. Here’s the math for a single filer earning $70,000 in 2026, using the $16,100 standard deduction and the seven federal brackets from IRS Rev. Proc. 2025-32.
Add Social Security ($4,340) and Medicare ($1,015), and the combined federal-plus-FICA bill on that $70,000 salary comes to $11,925, an effective rate of 17.0% before any pre-tax deductions like a 401(k). New Hampshire’s own line stays at $0, so that federal number is essentially the final tax bill for a wage earner here.
Frequently Asked Questions
Does New Hampshire have a state income tax?
No. New Hampshire has never taxed wages or salaries. It used to tax interest and dividend income through the Interest and Dividends Tax, but that tax was fully repealed effective January 1, 2025, so as of 2026 New Hampshire has zero income taxation of any kind at the state level.
What happened to New Hampshire’s Interest and Dividends Tax?
House Bill 2, signed by Governor Chris Sununu during the 2023 legislative session, accelerated the repeal of the Interest and Dividends Tax. The rate stepped down from 5% to 4% in 2023, to 3% in 2024, and hit 0% for tax periods beginning on or after January 1, 2025.
How much tax is taken out of a paycheck in New Hampshire?
A New Hampshire paycheck only carries federal deductions: federal income tax, Social Security (6.2% up to $184,500 of wages in 2026), and Medicare (1.45%, plus an extra 0.9% on wages above $200,000 for single filers or $250,000 for married filing jointly). There is no state withholding line.
Does New Hampshire have a sales tax?
No. New Hampshire is one of only five states with no state sales tax, and it has no local sales tax either. That makes it a common shopping destination for residents of Massachusetts and Maine, both of which charge sales tax.
Why are property taxes so high in New Hampshire?
With no income tax and no sales tax, New Hampshire leans on property tax to fund state and local government, especially public schools. The effective property tax rate on owner-occupied homes averages 1.50% statewide according to the Tax Foundation, among the highest rates in the country.
Is Social Security taxed in New Hampshire?
No. Social Security benefits, pensions, and retirement account withdrawals are not taxed by New Hampshire at the state level. Federal tax may still apply to a portion of Social Security benefits depending on total household income.
New Hampshire’s tax story isn’t really about the paycheck at all anymore, since wages were never on the table to begin with. It’s about what finished changing in 2025, when the last tax the state collected on individuals disappeared for good. What’s left is a state that collects almost everything through property tax instead, which rewards renters and low-property-value households far more than it rewards someone buying a home in a town with a strong school budget. Look at the property tax rate in the specific town you’re considering, not just the statewide average, before assuming the no-income-tax headline tells the whole story.