Massachusetts vs New Hampshire: Taxes & Take-Home Pay 2026
On a $100,000 salary you keep $73,940 in Massachusetts and $79,180 in New Hampshire — $5,240 more per year in New Hampshire ($437 a month). Single filer, standard deductions.
Updated 2026-10-03
Take-home pay at every salary
| Gross salary | Massachusetts | New Hampshire | Difference |
|---|---|---|---|
| $40,000 | $32,356 (19.1% tax) | $34,320 (14.2% tax) | -$1,964 |
| $60,000 | $47,334 (21.1% tax) | $50,390 (16.0% tax) | -$3,056 |
| $75,000 | $57,718 (23.0% tax) | $61,593 (17.9% tax) | -$3,875 |
| $100,000 | $73,940 (26.1% tax) | $79,180 (20.8% tax) | -$5,240 |
| $150,000 | $105,821 (29.5% tax) | $113,791 (24.1% tax) | -$7,970 |
| $250,000 | $170,053 (32.0% tax) | $183,182 (26.7% tax) | -$13,129 |
- Massachusetts total tax rate
- New Hampshire total tax rate
Where the money goes at $100,000
- Massachusetts
- New Hampshire
Sales tax: 6.25% in Massachusetts vs 0.00% in New Hampshire (average combined rate).
About taxes in Massachusetts
- Massachusetts taxes most income, including wages, at a flat 5%.
- A 4% surtax (the "millionaires tax") applies to income above $1,107,750 in tax year 2026, up from $1,083,150 in 2025, for a top rate of 9%.
- Short-term capital gains are taxed at 8.5%.
- The total PFML contribution is 0.88% of eligible wages at employers with 25 or more workers, and up to 0.46% can be withheld from employees (0.18% family leave + 0.28% medical leave), up to the Social Security wage cap.
- Massachusetts has no standard deduction; the personal exemption is $4,400 single, $8,800 married filing jointly and $6,800 head of household, plus $1,000 per dependent.
About taxes in New Hampshire
- New Hampshire does not tax wages or salaries.
- The Interest and Dividends Tax was repealed for tax periods beginning on or after January 1, 2025, so New Hampshire now has no tax on individual income at all.
- There is no general sales tax, but an 8.5% Meals and Rooms (Rentals) Tax applies to restaurant meals, hotel stays and car rentals.
Living in Nashua, working in Boston
New Hampshire has no income tax and no general sales tax; Massachusetts taxes most income at 5% and charges 6.25% sales tax. The catch is that moving to New Hampshire does not free you from Massachusetts tax if you keep working in Massachusetts.
This is one of the most common cross-border comparisons in the country. Thousands of people commute from southern New Hampshire towns such as Nashua, Salem and Windham into the Boston area, and many Massachusetts households look north for lower taxes and cheaper housing.
The two tax systems
New Hampshire collects instead through local property taxes, which are among the highest in the country, and business taxes. Its Interest and Dividends Tax was repealed for tax periods beginning on or after January 1, 2025, so residents now pay no tax on individual income of any kind.
| Massachusetts | New Hampshire | |
|---|---|---|
| Tax on wages | 5% flat, plus 4% surtax above $1,107,750 | None |
| Interest and dividends | 5% | None (repealed from 2025) |
| Personal exemption (single) | $4,400 | n/a |
| Paid leave payroll deduction | Up to 0.46% of wages up to $184,500 | None |
| General sales tax | 6.25% | None |
| Meals and rooms tax | Sales tax applies to meals | 8.5% on meals, hotel stays and car rentals |
Commuters: Massachusetts taxes the work, not the home
Massachusetts has no reciprocity agreements. It taxes nonresidents on wages for work performed in Massachusetts, so your employer keeps withholding Massachusetts tax. You file Form 1-NR/PY as a nonresident if your Massachusetts-source income is more than the smaller of $8,000 or your prorated personal exemption. New Hampshire has no income tax, so there is no credit to offset it: the Massachusetts tax is a real cost of the commute.
Example: a single commuter earning $110,000 who works every day in a Massachusetts office pays roughly $5,280 in Massachusetts income tax, about the same as a resident, plus up to $506 for PFML. If the same person works from home in New Hampshire two days a week, about 40% of the wages relate to work done outside Massachusetts. Massachusetts tax falls to roughly $3,168, a saving of about $2,112 a year.
- Keep a day-by-day log of where you worked. It is the evidence for allocating wages on Form 1-NR/PY.
- If your employer withholds Massachusetts tax on New Hampshire workdays, you can claim the excess back on your nonresident return.
Shopping across the border
New Hampshire's lack of sales tax draws Massachusetts shoppers, but Massachusetts residents owe use tax on items bought tax-free out of state and brought home. It is reported on Form 1 (or Form 1-NR/PY); for individual items under $1,000 you can use the safe-harbor amount on the return, while items of $1,000 or more must be reported individually. A car bought in New Hampshire is taxed when registered in Massachusetts.
Going the other way, New Hampshire residents pay Massachusetts sales tax on purchases made in Massachusetts, and anyone eating out or staying in a hotel in New Hampshire pays its 8.5% Meals and Rooms Tax.
Retirees and investors
Massachusetts excludes Social Security from income but taxes most pensions, IRA withdrawals, interest and dividends at 5%, short-term capital gains at 8.5% and collectibles gains at 12%. The 4% surtax applies to all taxable income above $1,107,750 in 2026, including capital gains, which can catch someone selling a business or a large investment in a single year.
New Hampshire taxes none of it. Federal law (4 U.S.C. §114) bars Massachusetts from taxing the pension and IRA income of people who have moved out of the state, so a retiree who becomes a New Hampshire resident stops owing Massachusetts tax on those payments. Self-employed people and business owners should note that New Hampshire does tax business profits through its Business Profits Tax and Business Enterprise Tax, so an exit from Massachusetts is not tax-free for a business.
The year you move
Part-year residents file Form 1-NR/PY and are taxed on all income received while a Massachusetts resident, plus Massachusetts-source income for the rest of the year. If you move to New Hampshire in July but keep your Boston job, the second half of the year is still Massachusetts-source, so your Massachusetts tax barely changes. The saving only appears for income earned outside Massachusetts after the move.
Massachusetts returns for 2026 are normally due April 15, 2027. New Hampshire has no individual income tax return to file for 2025 or later.
Frequently asked questions
Is Massachusetts or New Hampshire better for taxes?
At $100,000, New Hampshire leaves you $5,240 more per year after income and payroll taxes. The gap widens at higher incomes ($13,129 at $250,000).
How much is $60,000 after tax in Massachusetts and New Hampshire?
$47,334 in Massachusetts and $50,390 in New Hampshire.
Do New Hampshire residents pay Massachusetts income tax?
Yes, on wages for work done in Massachusetts, at 5%. There is no reciprocity agreement and no New Hampshire credit to offset it.
Do I owe Massachusetts tax for days I work from home in New Hampshire?
Generally no. Wages for work physically performed outside Massachusetts are not Massachusetts-source; allocate them on Form 1-NR/PY and keep a log of workdays.
Do Massachusetts residents owe tax on purchases made in New Hampshire?
Yes. Massachusetts use tax applies to items bought tax-free out of state and brought into Massachusetts.
Does New Hampshire tax interest and dividends anymore?
No. The Interest and Dividends Tax was repealed for tax periods beginning on or after January 1, 2025.
Sources
Figures are taken from official government publications and were last reviewed on 2026-10-03.
- Mass.gov — Massachusetts tax rates (2026 surtax threshold)
- Mass.gov — PFML employer contribution rates and calculator
- Tax Foundation — 2026 State Income Tax Rates and Brackets (cross-check)
- Tax Foundation – State and Local Sales Tax Rates, Midyear 2026 (as of July 1, 2026)
- NH Department of Revenue Administration – Interest & Dividends Tax
- NH Department of Revenue Administration – Meals & Rentals Tax
- Rev. Proc. 2025-32 (2026 inflation adjustments incl. OBBBA)
- IRS: Tax inflation adjustments for tax year 2026, including OBBBA amendments
- IRS: 401(k) limit increases to $24,500 for 2026, IRA limit increases to $7,500
- Mass.gov – Personal income tax for nonresidents (Form 1-NR/PY)
- Mass.gov – Tax information for seniors and retirees
- Mass.gov – Individual use tax
- NH Department of Revenue Administration – Business Taxes (BPT and BET)
- 4 U.S.C. §114 – Limitation on state income taxation of certain pension income (GovInfo)