New Hampshire has no general sales tax and no tax on wages, salaries, or investment income, so the taxes you actually pay in New Hampshire are property taxes, a real estate transfer tax when you buy or sell a home, an 8.5% meals and rooms tax, excise taxes on tobacco, fuel, and communications services, and — if you run a business — the Business Profits Tax and Business Enterprise Tax. The state’s old Interest and Dividends Tax was fully repealed effective January 1, 2025, which means there is no longer any state-level tax on personal income of any kind.1NH Department of Revenue Administration. Technical Information Release TIR 2025-001
No Income Tax, No Sales Tax
Wages, salaries, self-employment income, capital gains, retirement distributions, interest, and dividends are all untaxed at the state level. The Interest and Dividends Tax under RSA 77 was phased down over several years and reached zero for taxable periods beginning after December 31, 2024. You do not file an I&D return for 2025 or any later year, and you should not send estimated payments. If you sent one in by mistake, you can request a written refund from the Department of Revenue Administration.1NH Department of Revenue Administration. Technical Information Release TIR 2025-001
There is also no general sales tax. The meals and rooms tax described below is the closest thing New Hampshire has, and it only applies to a narrow set of transactions.
Property Taxes
Property taxes are the largest tax bill most New Hampshire residents face. Two layers show up on the same bill: local property taxes that fund municipal operations, county government, and local school districts, and the Statewide Education Property Tax (SWEPT), a uniform rate the state sets to help fund public education but which your municipality assesses and collects locally.2NH Department of Revenue Administration. Property Tax3NH Department of Revenue Administration. Statewide Education Property Tax
The math is simple. Multiply your assessed value by the combined tax rate, then divide by 1,000. A home assessed at $400,000 in a town with a combined rate of $20.00 per $1,000 produces an annual bill of $8,000.4NH Department of Revenue Administration. NH Department of Revenue Demystifies Tax Rates Rates vary widely between municipalities because each town sets its own budget. Bills typically arrive semi-annually or quarterly.
Exemptions and Credits That Lower Your Bill
Homeowners age 65 and older who have lived in New Hampshire for at least three consecutive years can apply for the elderly exemption. State minimum thresholds cap income at $13,400 single or $20,400 married and assets (excluding the home) at $35,000, though your town may adopt higher limits. The exemption reduces assessed value by at least $5,000, with larger reductions available for homeowners 75 and older.5NH Department of Revenue Administration. Exemptions and Tax Credits Info Sheet
Veterans who served in qualifying conflicts can receive a standard tax credit of $50 applied directly against the bill. Most towns have voted to adopt an optional credit of up to $750, which replaces the standard credit rather than stacking on top of it.6New Hampshire General Court. New Hampshire Code Title V Chapter 72 Section 72-28 – Standard and Optional Veterans Tax Credit Your local assessor’s office can tell you which credit your town has adopted.
If You Think Your Assessment Is Too High
You can file a written abatement application with your local assessors by March 1 following the date of your tax notice. If they deny it, you can appeal to the Board of Tax and Land Appeals or the Superior Court.7New Hampshire General Court. New Hampshire Code Title V Chapter 76 Section 76-16 – Abatement Application
If You Fall Behind
Interest accrues at 8% per year on any balance unpaid after December 1 following the assessment.8New Hampshire General Court. New Hampshire Code Title V Chapter 76 Section 76-13 – Interest If the bill stays unpaid, the tax collector can execute a tax lien, and the interest rate jumps to 14%. You then have a two-year redemption period to pay off the debt in full with interest. Miss that window and the municipality can take ownership of the property through a tax deed.9New Hampshire General Court. New Hampshire Code Title V Chapter 80 Section 80-80 – Transfer of Tax Lien
Real Estate Transfer Tax
When real property changes hands, both the buyer and the seller owe $0.75 per $100 of the sale price, for a combined rate of $1.50 per $100.10New Hampshire General Court. New Hampshire Code Title V Chapter 78-B Section 78-B-1-a – Real Estate Transfer Tax On a $500,000 sale, the total tax is $7,500, split $3,750 each. Payment goes to the Register of Deeds in the county where the property is located, usually at closing.
Several transfers are exempt under RSA 78-B:2, including property passing by will, intestate succession, or the death of a joint tenant; corrective deeds that fix an error in a prior deed; transfers between an owner and their business entity when ownership percentages stay the same and no money changes hands; and transfer-on-death deeds under RSA 563-D where no consideration is exchanged.11New Hampshire General Court. New Hampshire Code Title V Chapter 78-B Section 78-B-2 – Exceptions
Meals and Rooms Tax
Prepared meals, hotel and short-term lodging, and motor vehicle rentals of fewer than 180 days are taxed at 8.5%.12New Hampshire General Court. New Hampshire Code Title V Chapter 78-A Section 78-A-6 – Imposition of Tax That covers restaurant dining, takeout, hotel stays, and short-term car rentals. The business collects the tax at the point of sale and remits it to the state. Groceries and other retail goods are not covered.
Tobacco, Communications, and Fuel
Cigarettes are taxed at $1.78 per pack of 20, with packs of other sizes taxed proportionally.13New Hampshire General Court. New Hampshire Code Title V Chapter 78 Section 78-7 – Tax Imposed Other tobacco products, including smokeless tobacco and electronic cigarettes, are taxed at varying rates based on wholesale price. Retail cigarette packs must bear an official New Hampshire tax stamp.14Justia Law. New Hampshire Code Title V Chapter 78 – Tobacco Tax
Two-way communication services like landline and mobile phone plans carry a 7% Communications Services Tax, collected by your provider on your monthly bill.15NH Department of Revenue Administration. Communications Services Tax One-way services like broadcast television are not covered.
At the pump, you pay a road toll of $0.18 per gallon of motor fuel, subject to periodic adjustments, built into the price by fuel distributors.16New Hampshire General Court. New Hampshire Code Title XXI Chapter 260 Section 260-32 – Levy of Tolls and Exemptions17NH Division of Motor Vehicles. Vehicle Registrations18New Hampshire General Court. New Hampshire Code Title XXI Chapter 261 Section 261-141 – Fees to State
Business Taxes
If you operate a business in New Hampshire, two separate taxes may apply, both reaching corporations, partnerships, sole proprietorships, and other business organizations.
The Business Profits Tax (BPT) is 7.5% of net business income.19New Hampshire General Court. New Hampshire Code Title V Chapter 77-A Section 77-A-2 – Imposition of Tax For taxable periods beginning on or after January 1, 2025, every business with gross income from all activities exceeding $109,000 must file a BPT return, even in a loss year.20NH Department of Revenue Administration. Business Taxes
The Business Enterprise Tax (BET) is 0.55% of the enterprise value tax base, which combines compensation, interest, and dividends paid by the business.21NH Department of Revenue Administration. Transparency – Business Taxes For periods beginning on or after January 1, 2025, you must file a BET return if gross receipts exceed $298,000 or the enterprise value tax base exceeds $298,000.20NH Department of Revenue Administration. Business Taxes BET paid can be credited against BPT liability, so the same income is not fully taxed twice.
Partnership returns are due the 15th day of the third month after the taxable period ends. Corporate, sole proprietorship, fiduciary, and combined returns are due the 15th day of the fourth month. Businesses with an estimated tax liability above $260 must make quarterly estimated payments on the 15th day of the 4th, 6th, 9th, and 12th months of the taxable period.22NH Department of Revenue Administration. Business Enterprise Tax FAQ Late filing carries a penalty of 5% of unpaid tax per month, capped at 25%.23New Hampshire General Court. New Hampshire Code Title I Chapter 21-J Section 21-J-31 – Penalty for Failure to File
No Estate or Inheritance Tax
New Hampshire does not impose an inheritance tax or an estate tax. The state’s legacy and succession tax was repealed for deaths occurring on or after January 1, 2003, and the state estate tax return has not been required for deaths on or after January 1, 2005.24NH Department of Revenue Administration. Inheritance and Estate Tax25NH Department of Revenue Administration. Inheritance and Estate Taxes FAQ Federal estate tax rules still apply at the federal level, but no separate New Hampshire filing is required.