New Hampshire: No State Income Tax
New Hampshire has long had no state income tax on wages and salaries. As of January 1, 2025, the state also eliminated its interest and dividends tax, making it fully income-tax-free across all income types. For professionals in the Boston metro area who work remotely or commute, New Hampshire residency offers meaningful tax savings versus Massachusetts.
New Hampshire has no state income tax on wages. $0 in state income taxes on salary. Federal income tax still applies to all income — "no state income tax" refers to state-level taxation only.
New Hampshire borders Massachusetts, which has a 9% effective top rate for high earners, and many professionals who work in the Boston area choose to live in New Hampshire for the income tax advantage. On a $150,000 salary, the difference between New Hampshire (0%) and Massachusetts (5% base plus 4% high-income surtax) can be $7,500 to $13,500 annually depending on income composition.
New Hampshire funds state services through property taxes (among the highest in the US), a meals and rooms tax, and other consumption taxes. There is no general sales tax. For high-income earners, the total tax picture is typically still favorable versus Massachusetts despite the high property taxes.
The New Hampshire tech and professional sector is concentrated in Manchester, Nashua, and the southern tier near the Massachusetts border. Major employers include BAE Systems, Dell/EMC, and a range of professional services firms. Remote workers from anywhere in the country can benefit from New Hampshire domicile regardless of employer location.
Using New Hampshire's tax advantage in negotiations
If you have a competing offer from a Massachusetts employer and are considering a New Hampshire-based employer or remote work from New Hampshire, the tax difference is worth quantifying. At $200,000 in income, the Massachusetts vs. New Hampshire gap can exceed $10,000 to $18,000 annually. Use the Compare Job Offers tool to model the full picture including cost of living.
Other states with no income tax
Nine US states currently have no personal state income tax. Each has different trade-offs in property tax, sales tax, and cost of living.
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Total Comp CalculatorFrequently asked questions: New Hampshire income tax
Does New Hampshire have a state income tax?
No. New Hampshire has no state income tax on wages or salaries. As of 2025, the state's interest and dividends tax was also eliminated, making it fully income-tax-free.
Is New Hampshire a good state to live in for tax purposes if I work in Boston?
It can be financially significant. Massachusetts residents pay at least 5% state income tax on wages. If you can establish New Hampshire domicile while working remotely or commuting (noting that MA has complex rules on taxation of non-residents), the savings can be substantial.
Tax rates shown reflect the best available 2026 information and are provided for informational purposes only. State income tax rates, brackets, and rules change frequently. This page is not tax advice. Consult a qualified tax professional for advice specific to your situation. © CompCalc — compensationcalculator.xyz