How taxes work in New Hampshire
Sales tax. New Hampshire levies no statewide sales tax. No sales tax in New Hampshire (meals and rooms are taxed at 8.5%).
Property tax. At an average effective rate of about 1.77%, a $350,000 home in New Hampshire carries roughly $6,195 a year in property tax before exemptions. New Hampshire is a high-property-tax state — factor the tax bill into affordability, not just the mortgage payment. Local assessors set actual bills, so verify with the county for any specific property.
Income tax. No tax on wages; its interest & dividends tax was fully repealed from 2025. No sales tax either — but property taxes are high. Remember that 'no income tax' states fund services through other taxes — compare the full picture (sales, property) before assuming a move saves money.
Sales tax · average combined
Property tax · average effective
Chart: DailyFinance.tools · Rates are reviewed averages from our state tax dataset — your exact local rate may differ.
How New Hampshire compares with similar states
The states closest to New Hampshire on average combined sales tax. Property tax is the average effective rate; income tax shows the structure, not a single rate.
| State | Combined sales tax | Property tax | Income tax |
|---|---|---|---|
| New Hampshire (this page) | 0% | 1.77% | None |
| Alaska | 1.82% | 1.23% | None |
| Delaware | 0% | 0.61% | Progressive |
| Montana | 0% | 0.83% | Progressive |
| Oregon | 0% | 0.82% | Progressive |
| All-state average (51 entries) | 6.61% | 1.04% | — |
What this means for your money in New Hampshire
New Hampshire does not tax wages, but the revenue is recovered elsewhere. Property tax is the main lever: at an average effective rate of 1.77% (rank 4 of 51, against an all-state average of 1.04%), a $400,000 home carries about $7,080 a year — collected monthly through mortgage escrow, so it shows up as a higher monthly payment rather than an annual bill. Renters feel it indirectly through rent.
Read together: New Hampshire combines an average combined sales tax of 0% (rank 50 of 51), an average effective property tax of 1.77% (rank 4 of 51) and no state tax on wages. A household comparing states should compare all three against its own pattern — a high earner who rents weighs the income tax most; a homeowner on a fixed income weighs the property tax most.
Major cities in New Hampshire
Manchester, Nashua, Concord, Derry, Rochester. Combined sales-tax rates differ between these cities — sometimes by more than a full percentage point inside the same state — because county and city layers stack on the state base. The New Hampshire sales tax guide breaks down the calculation and links the calculator where you can enter your exact local rate.
Calculators for New Hampshire residents
- New Hampshire Sales Tax Guide & Examples — what you actually pay, with worked amounts.
- Sales Tax & VAT Calculator — add or extract tax at any rate, including your exact New Hampshire local rate.
- Mortgage Calculator — include New Hampshire property tax in the monthly payment.
- Property Tax Calculator — estimate a specific property's bill.
- Self-Employment Tax Calculator — federal SE tax for New Hampshire freelancers.