New Hampshire does not tax Social Security benefits or pension income. The state has no broad-based personal income tax, so Social Security checks, public and private pensions, 401(k) withdrawals, and IRA distributions all arrive free of any state tax. You do not file a state income tax return for any of this income, and no state withholding applies no matter how much you receive.
This treatment covers every retiree in the state. There are no income caps, no phase-outs, and no partial exemptions to calculate. Whether your yearly retirement income is $30,000 or $300,000, New Hampshire takes none of it.
The Last Income-Like Tax Is Gone
For years, the one tax that resembled an income tax in New Hampshire was the Interest and Dividends Tax under RSA 77, which applied to bank interest, bond payments, and corporate dividends above $2,400 for single filers or $4,800 for joint filers. The legislature phased the rate down from 5 percent to 4 percent to 3 percent, and then repealed it entirely for tax periods beginning after December 31, 2024.1NH Department of Revenue Administration. Interest and Dividends Tax Frequently Asked Questions
As of 2025, investment income earned by New Hampshire residents is not subject to any state tax. Retirees living on dividend-paying stocks, bond interest, or savings account earnings no longer need to file the old I&D return or make estimated payments to the state.
Federal Tax on Social Security Still Applies
New Hampshire leaves your benefits alone, but the IRS may not. The federal government uses a figure called combined income to decide whether part of your Social Security is taxable. Combined income is your adjusted gross income, plus any tax-exempt interest (such as municipal bond income), plus half of your Social Security benefits.2Internal Revenue Service. Publication 915 – Social Security and Equivalent Railroad Retirement Benefits
The thresholds that trigger federal taxation are written into statute and have not changed in decades:3Office of the Law Revision Counsel. 26 USC 86 – Social Security and Tier 1 Railroad Retirement Benefits
- Single filers with combined income between $25,000 and $34,000 may have up to 50 percent of their benefits taxed. Above $34,000, up to 85 percent may be taxable.
- Married filers filing jointly with combined income between $32,000 and $44,000 may have up to 50 percent taxed. Above $44,000, up to 85 percent may be taxable.
- Married filing separately, if you lived with your spouse at any point during the year, your base amount is $0 and benefits are taxable from the first dollar.
Because these thresholds are not indexed to inflation, more retirees cross them every year as pensions and withdrawals grow. Planning the timing of distributions from taxable retirement accounts can help you keep combined income under a bracket and reduce the federal share of your benefits.
Property Taxes Are the Real Retiree Cost
With no sales tax and no income tax, New Hampshire funds schools, roads, and municipal services largely through local property taxes. The state consistently ranks among the highest in the country for effective property tax rates, and for retirees on fixed incomes, the property tax bill is usually the single largest cost of staying in the home.
Several state programs can reduce that bill for seniors, disabled residents, and veterans. Each is run through your city or town, and qualifying for one does not prevent you from applying for others.
Elderly Exemption
RSA 72:39-a lets municipalities subtract a dollar amount from the assessed value of your primary home before the tax is calculated. The exemption rises with age in three tiers: 65 to 74, 75 to 79, and 80 and older. Each city or town sets its own dollar amounts and its own income and asset limits, within statutory floors.4New Hampshire General Court. New Hampshire Code 72-39-a To qualify, you must be at least 65 by April 1 of the tax year, a New Hampshire resident for at least three consecutive years, and within your town’s income and asset ceilings. You apply by filing Form PA-29 with your local assessors by April 15.5NH Department of Revenue Administration. PA-29 Form and Instructions
Low and Moderate Income Homeowners Rebate
Separately, the state runs a rebate program that offsets the State Education Property Tax for homeowners with adjusted gross income of $37,000 or less (single) or $47,000 or less (married or head of household). Applications are only accepted between May 1 and June 30, through Granite Tax Connect or by filing Form DP-8. Approved claimants receive a check from the state rather than a reduction on the local bill.6NH Department of Revenue Administration. Low and Moderate Income Homeowners Property Tax Relief
Disabled Residents Exemption
Under RSA 72:37-b, residents who are totally and permanently disabled can qualify for a property tax exemption modeled on the elderly exemption, if their city or town has adopted it. You must be eligible for disability benefits under Title II or Title XVI of the federal Social Security Act, have been a New Hampshire resident for at least five consecutive years, and occupy the property as your primary home. The same income and asset limits apply as for the elderly exemption, and the application uses the same PA-29 form and April 15 deadline.7New Hampshire General Court. New Hampshire Code 72-37-b – Exemption for the Disabled
Veterans’ Tax Credit
RSA 72:28 provides a property tax credit for veterans, subtracted directly from the tax bill rather than from assessed value. The standard credit is $50 per year, though a city or town may vote to adopt a higher optional credit anywhere from $51 to $750, which replaces the standard amount.8New Hampshire General Court. New Hampshire Code 72-28 – Standard and Optional Veterans Tax Credit A veteran who also qualifies for the elderly or disability exemption can stack them: the exemption reduces the assessed value first, and the credit then comes off the resulting bill.
No State Estate or Inheritance Tax
New Hampshire does not impose a state estate tax or inheritance tax. The former Legacy and Succession Tax and the Transfer Tax on nonresident personal property were repealed effective for deaths on or after January 1, 2003, and no New Hampshire estate tax return is required.9NH Department of Revenue Administration. Inheritance and Estate Taxes The federal estate tax may still apply to very large estates, but the 2026 federal exemption is $15,000,000 per person, so most New Hampshire residents owe nothing at either level.10Internal Revenue Service. IRS Releases Tax Inflation Adjustments for Tax Year 2026, Including Amendments From the One, Big, Beautiful Bill