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New Hampshire State Taxes: What You’ll Owe in the 2026 Tax Season

Valerie Bauman,

AARP

Published April 22, 2026

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New Hampshire doesn’t have an income tax or sales tax, factors that helped the state rank third on the Tax Foundation’s 2026 Competitiveness Index.

The big picture:

Income tax: The state doesn’t have an income tax.
Property tax: The average property tax was 1.5 percent in 2024, according to the latest data from the Tax Foundation, though actual rates vary by county.
Sales tax: The state has no sales tax.

How is income taxed?

New Hampshire does not impose an income tax on wages.

What about investment income?

The state does not tax capital gains or income from interest and dividends.

Are Social Security benefits taxed?

With no state income tax, New Hampshire does not tax Social Security.

How is property taxed?

The average property tax was 1.5 percent of a home’s assessed value in 2024, although actual rates vary by county, according to the most recent data from the Tax Foundation. Rates range from a low of 0.87 percent in Carroll County to a high of 1.87 percent in Cheshire County. The median property taxes paid ranged from a low of $3,579 in Coos County to a high of $7,839 in Rockingham County.

What about sales and other taxes?

Sales tax: The state has no sales tax.
Gas and diesel: Gas and diesel are taxed at 23.746 cents per gallon.
Vehicle tax: The state charges an annual fee based on the weight of the vehicle. There are higher fees for heavier vehicles. There is also a municipal permit fee based on the manufacturer’s original suggested retail price and the age of the automobile. New vehicles are taxed at $18 per $1,000 of value, and that declines for five years when it settles at $3 per $1,000 of value. The cost is built into the annual registration of a vehicle and is calculated at most local town or city levels. Renewals are always done in the month of the owner’s birth.
Alcohol: The state doesn’t tax alcohol.
Lottery: New Hampshire doesn’t tax income, so doesn’t tax lottery winnings, but effective Jan. 1, 2026, for prizes of $2,000 or more, winners report the money on their federal income tax form. In addition, the IRS requires states to withhold 24 percent for federal taxes when winnings exceed $5,000.

Will my heirs or estate have to pay inheritance and estate tax?

New Hampshire does not have an inheritance or estate tax.

Are there any tax breaks for older residents?

Local municipalities can adopt exemptions for older residents to receive reductions on their property taxes. The property tax exemption program benefits and eligibility requirements vary by town or city, but the state law requires a resident to live in the state for at least three consecutive years prior to April 1 of the year the benefit is sought. In addition, the income requirements imposed by municipalities can’t be less than $13,400 for a single person, or $20,400 for married couples filing jointly. Also, the municipalities must give greater reductions as residents age, creating different thresholds for people age 65-75, 75-80 and then 80 or older. To receive the benefit, residents also must have net assets that don’t exceed the limits placed by local communities. These limits can vary depending on whether a taxpayer is single or married, and the limits can’t be less than $35,000, excluding the value of any property owned, according to state law. Information on the specific exemptions municipalities offered in 2024, the most recent year available, can be found here.

Are military retirement pensions taxed?

New Hampshire doesn’t tax income, including military pensions.

What is the deadline for filing taxes in 2026?

With no income tax, the state doesn’t have a tax deadline. Federal taxes were due on April 15, 2026. If a taxpayer requested an automatic six-month extension, they have until Oct. 15 to file their federal return, although taxes due should have been paid by April 15.

More AARP Financial Resources

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Valerie Bauman is a journalist and author with two decades of experience working for publications, including Newsweek, Bloomberg and The Associated Press. Throughout her career, she’s covered politics and the law, including pharmaceutical litigation, mass torts and election law.