New Hampshire Income Tax Calculator 2026

New Hampshire income tax in 2026: none on individuals

New Hampshire has no tax on individual income in 2026. It never taxed wages, and the Interest and Dividends Tax — its last tax on personal investment income — was repealed for tax periods beginning on or after January 1, 2025. Residents pay federal income tax only.

Before the repeal, residents with interest and dividend income above an exemption paid a tax that had been phased down over several years. If you are reviewing an older tax year, that tax may still apply; for 2026 it does not.

Worked example: married couple earning $120,000

A married couple filing jointly with $120,000 of wages subtracts the $32,200 federal standard deduction, leaving $87,800 of taxable income.

• Federal tax before credits: $10,040. That is the couple’s entire income tax bill in New Hampshire.
• With two qualifying children, the $2,200-per-child credit would cut the bill by $4,400.

Business taxes that can reach the self-employed

New Hampshire taxes businesses, not people, and the line can be thinner than it looks. Sole proprietors, landlords with rental businesses and partnerships can owe the state’s two business taxes even though there is no personal income tax:

• Business Profits Tax (BPT): 7.5% of business profits. For tax periods beginning on or after January 1, 2025, a return is required when gross business income from all activities exceeds $109,000.
• Business Enterprise Tax (BET): 0.55% of the enterprise value tax base (compensation, interest and dividends paid). A return is required when gross receipts or the tax base exceed $298,000.

Retirees and investors

With the Interest and Dividends Tax gone, New Hampshire does not tax Social Security, pensions, IRA withdrawals, interest, dividends or capital gains. Federal rules still apply: up to 85% of Social Security can be federally taxable once combined income passes $25,000 (single) or $32,000 (joint), and long-term gains are taxed at federal rates of 0%, 15% or 20%.

Taxes New Hampshire residents still pay

No income tax does not mean no state taxes. New Hampshire levies an 8.5% Meals and Rooms (Rentals) Tax on restaurant meals, hotel stays and car rentals, and it relies heavily on local property taxes. If you earn income in Massachusetts, Maine or Vermont, those states can tax that income as a nonresident.

Managing federal tax without state withholding

With no state return, the federal return is where every adjustment happens. Retirees drawing IRA distributions or Social Security, and investors whose dividend income used to be reported on the old Interest and Dividends Tax return, often have no withholding at all. Asking for federal withholding on IRA distributions or making quarterly federal estimated payments avoids an underpayment penalty.

Self-employed New Hampshire residents owe federal self-employment tax of 15.3% on 92.35% of net profit in addition to federal income tax, and may also owe the state business taxes described above if their business crosses the filing thresholds.