New Hampshire Retirement Income Tax: What's Taxed in 2026

New Hampshire taxes none of your retirement income. Social Security, pensions, and retirement-account withdrawals are all untaxed by the state, and the Interest and Dividends Tax levied under New Hampshire's income-taxation chapter was repealed for tax periods beginning on or after January 1, 2025.1 New Hampshire still has a property tax.1 Each town sets the amounts and the income and asset limits for the elderly exemption, which reduces a qualifying home's assessed value.2

This guide covers what New Hampshire retirement income tax means, the tax that went away in 2025, and the taxes that remain.

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
• Other Taxes That Still Apply
• Property Tax and the Elderly Exemption
• Frequently Asked Questions
• Next Steps

The Short Answer

New Hampshire taxes none of your retirement income. A pension, an IRA withdrawal, or a Social Security check owes nothing to the state.

The New Hampshire Department of Revenue Administration states that for tax periods beginning on or after January 1, 2025, New Hampshire taxpayers are no longer required to pay the Interest and Dividends Tax. The state does not tax pensions, Social Security, or retirement-account withdrawals.1 So whether you ask about pensions, Social Security, or 401(k) withdrawals, the state answer is the same. New Hampshire taxes none of it.

New Hampshire used to levy a tax on interest and dividends. That tax is repealed, as we explain below.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.

Every state-tax entry reads "None." As of 2025, that holds for every kind of retirement income. Business income is a separate question, covered below.1 The table covers state tax only. Federal tax is a separate question, taken up below.

New Hampshire Retirement Income Tax: How It Works

There is no New Hampshire tax on retirement income to work through. No income level triggers one, and no type of retirement income is exempt only up to a limit, because the state does not tax retirement income at all.

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.1

If you are relocating, this guide covers New Hampshire only. Ask your former state's tax agency or a tax preparer how that state treats the year you move and what it needs from you to end your residency there.

The Interest and Dividends Tax Is Gone

New Hampshire's income-taxation chapter, RSA 77, levied the Interest and Dividends Tax. The General Court repealed that chapter in its entirety, by section 91:99, II of the 2021 session law.1

That tax was repealed effective for tax periods beginning on or after January 1, 2025.1 The repeal is not retroactive, though. New Hampshire's revenue department says taxable periods beginning on or before December 31, 2024 remain subject to audit and collection, so an unfiled or underpaid 2024 return is not closed by the repeal.1

For those final years, the department gives these rates. The tax was 5% for tax periods ending prior to December 31, 2023, 4% for taxable periods ending on or after December 31, 2023, and 3% for taxable periods ending on or after December 31, 2024.1 It did not reach every resident. Under prior law, the department says, the 3% tax was imposed on New Hampshire residents receiving more than $2,400 of interest and dividend income if filing as an individual, or more than $4,800 if filing a joint return. Exemptions were available for residents 65 or older, blind, disabled, or unable to work and not yet 65.1 If an old year is still open, ask the New Hampshire Department of Revenue Administration how these rules apply to your return.

If you paid the Interest and Dividends Tax in earlier years, it no longer applies for tax periods beginning on or after January 1, 2025.1

Other Taxes That Still Apply

Zero state tax on retirement income does not mean zero taxes.

Federal income tax. Everything above is about state tax. Your federal return follows its own rules. Distributions from a traditional IRA are taxed as ordinary income, though not all of a distribution is taxable if you made nondeductible contributions.3 Part of your Social Security can be taxable on a federal return as well. Whether it is depends on your filing status and on your modified adjusted gross income, a figure defined in federal tax law, plus one-half of your benefits, and at most 85 percent of your benefits are ever included in gross income.4 For a pension or a 401(k), check with the IRS or a tax preparer.

Property tax. Retirement income escapes state tax, but New Hampshire still has a property tax, which the state's revenue department lists among the taxes it administers and collects at the local level.1 Every municipality also sets its own elderly-exemption amounts, income limits, and asset limits, so the relief an older homeowner can claim depends on the town.2 See our senior property tax relief guide for the elderly exemption New Hampshire towns offer.

Sales tax and the Meals and Rooms Tax. The state's revenue department says there is no general sales tax on goods purchased in New Hampshire.1 It does levy a Meals and Rooms (Rentals) Tax, assessed on patrons of hotels (or any facility with sleeping accommodations) and restaurants, and on motor vehicle rentals. The consumer pays it, and the operator collects it and sends it to the state. The rate is 8.5% for taxable periods beginning October 1, 2021.1

Business Profits Tax, if you run anything. The repeal did not leave New Hampshire with no income taxation at all. The state's revenue department still administers and collects a Business Profits Tax, and RSA 77-A:1 defines a taxable business organization to include a proprietorship organized for gain or profit and carrying on any business activity in the state. A retiree with self-employment income, contract work, or a rental operation can sit inside that definition.1 The department's Business Taxes page says that for taxable periods beginning on or after January 1, 2025, every business organization with gross business income from all business activities of more than $109,000 must file a Business Profits Tax return, and that this filing threshold is adjusted biennially.1 That threshold is for filing a return. Whether a business that must file actually owes the tax is a separate question this guide does not cover, so ask the New Hampshire Department of Revenue Administration before you assume you are outside it.

Property Tax and the Elderly Exemption

No state tax on retirement income is one part of the picture. New Hampshire still has a property tax.1 This guide does not cover how much that tax runs in any town, so ask the local assessor what the bill on a specific home would be.

New Hampshire's Elderly Exemption is a local-option program. Each municipality sets its own exemption amounts, income limits, and asset limits, and the exemption reduces the home's assessed value before the tax is calculated. To qualify, you must meet your town's income and asset limits, be 65 on or before April 1 of the year you apply, and have lived in New Hampshire for at least 3 consecutive years before April 1 of the year you claim the exemption. You apply with your local tax assessor on Form PA-29.2

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.

Next Steps

• If you are moving to New Hampshire, ask your former state's tax agency or a tax preparer how that state treats the year you move. New Hampshire taxes no retirement income at the state level.1
• If you own a home, apply to your local tax assessor for your town's elderly exemption once you qualify.2
• Ask about the property tax bill. Before you buy, ask the town's assessor what the tax on that home would be.
• Plan your care funding. Read our guide to paying for senior care and retirement accounts for care.

Learn More

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.