New Hampshire taxes none of your retirement income. It never taxed wages, pensions, or retirement-account withdrawals, and its one income tax was repealed at the start of 2025. The catch is property tax, which runs high.
This guide covers what New Hampshire retirement income tax means, the tax that went away in 2025, and why property taxes deserve a close look.
In This Guide
- The Short Answer
- New Hampshire Retirement Income Tax at a Glance
- New Hampshire Retirement Income Tax: How It Works
- The Interest and Dividends Tax Is Gone
- What You Still Pay in New Hampshire
- The Property Tax Trade-Off
- Frequently Asked Questions
- Next Steps
The Short Answer
New Hampshire taxes none of your retirement income. There is no state income tax, no state return, and no state withholding on a pension or IRA.
The New Hampshire Department of Revenue Administration no longer collects any income tax. So whether you ask about pensions, Social Security, or 401(k) withdrawals, the state answer is the same. New Hampshire taxes none of it.
For years New Hampshire was an asterisk on no-income-tax lists because of one narrow tax on interest and dividends. That asterisk is gone, as we explain below.
New Hampshire Retirement Income Tax at a Glance
Here is how each common income source is treated at the state level.
| Income Source | New Hampshire State Tax | Federal Tax |
|---|---|---|
| Social Security | None | May apply, depending on income |
| Private pension | None | Yes |
| Public/government pension | None | Yes |
| Traditional IRA withdrawal | None | Yes |
| 401(k) distribution | None | Yes |
| Roth IRA (qualified) | None | None |
| Interest and dividends | None (tax repealed in 2025) | Yes |
Every state-tax entry reads "None." As of 2025, that holds for every kind of income.
New Hampshire Retirement Income Tax: How It Works
It does not. No income level triggers it, and no type of retirement income is exempt only up to a limit, because there is no income tax to limit.
A military pension, a teacher's pension, a corporate 401(k), a required minimum distribution, a Social Security check: New Hampshire taxes all of them at zero. It never taxed any of these, even before the 2025 repeal. There is no New Hampshire retirement exclusion to claim and no senior credit to file, because you do not owe state income tax in the first place. You do not file a New Hampshire income tax return.
If you are relocating, confirm your residency cleanly. New Hampshire taxes New Hampshire residents at zero, but a former state may still tax income earned while you lived there. Get a New Hampshire driver's license, register to vote, and document the move so your old state cannot keep billing you.
The Interest and Dividends Tax Is Gone
For decades New Hampshire had one income tax: the Interest and Dividends Tax. It taxed interest and dividend income only. It never reached wages, Social Security, pensions, or retirement-account distributions.
That tax was repealed effective for tax periods beginning on or after January 1, 2025. So as of 2025, New Hampshire has no income tax of any kind. If you held taxable bonds or dividend-paying stocks outside a retirement account, the small New Hampshire bite they once carried is gone. Retirement-account income was already untaxed, so for most retirees the repeal simply confirms a zero that was already there.
What You Still Pay in New Hampshire
Zero income tax does not mean zero taxes. New Hampshire makes up the difference elsewhere.
Federal income tax. The IRS still taxes pension income, traditional IRA and 401(k) withdrawals, and often part of Social Security benefits. Moving to New Hampshire zeroes out your state bill and leaves your federal one untouched.
Property tax. This is the big one. New Hampshire has some of the highest property tax rates in the country, set and collected locally, because it relies on property tax in place of an income or general sales tax. For a homeowner, the annual property bill can dwarf what an income tax would have cost. See our senior property tax relief guide for the elderly exemption and deferral options New Hampshire towns offer.
No general sales tax. New Hampshire has no broad sales tax, which softens the property-tax sting for people who spend a lot. Certain narrow taxes, such as the meals and rooms tax, still apply.
The Property Tax Trade-Off
The no-income-tax headline is real, but the property tax decides whether New Hampshire actually saves you money.
A retiree who rents or owns a modest home comes out clearly ahead. The state takes nothing on the income, and the property bill stays manageable. A retiree with a high-value home in a high-rate town tells a different story, where a large property bill can offset much of the income-tax savings. New Hampshire towns offer an elderly exemption and a tax deferral for qualifying older homeowners, so apply where you live the year you qualify.
For families weighing how this income will cover care, start with our guide on how to pay for senior care, our framework for building a senior care funding plan, and our overview of retirement accounts for care.
Frequently Asked Questions
No. New Hampshire has no income tax, so it taxes no Social Security benefits. Your benefits may still be partly taxable federally, but the state takes nothing.
No. Public pensions, private pensions, IRA withdrawals, and 401(k) distributions are all free of New Hampshire state tax, and always were. The state has no income tax to apply.
No. The state's only income tax was the Interest and Dividends Tax, which taxed interest and dividends but never pensions, retirement-account withdrawals, or Social Security. It was repealed effective January 1, 2025.
Yes. New Hampshire relies on property taxes instead of an income or general sales tax, and rates are among the highest in the country. Qualifying older homeowners can claim an elderly exemption or a tax deferral.
Next Steps
- If you are moving to New Hampshire, establish clean residency so your former state cannot keep taxing you.
- If you own a home, apply for your town's elderly exemption or tax deferral once you qualify.
- Run the property-tax math. Compare the likely property bill against what an income tax would have cost you.
- Plan your care funding. Read our guide to paying for senior care and retirement accounts for care.
Learn More
- How to Pay for Senior Care
- Building a Senior Care Funding Plan
- Retirement Accounts for Care
- Senior Property Tax Relief by State
Find personalized help planning retirement income for senior care at brevy.com.
The information on Brevy.com is for educational purposes only and is not a substitute for professional legal, financial, or medical advice. Rules vary by state and program and change frequently. Always verify with the relevant agency or a qualified professional. Brevy is not a law firm, financial advisor, or healthcare provider.