How New Hampshire taxes a paycheck
New Hampshire has never taxed wages. For decades it taxed interest and dividend income at 5%, which put it in an odd category with Tennessee; a 2021 law phased that tax down to 3% in 2024 and repealed it entirely from 2025, so for 2026 the state has no individual income tax of any kind. It also has no general sales tax. The state and its towns rely on property tax, which is the second highest in the country per capita, plus business taxes and a 9% meals and rooms tax.
There are no local income taxes and no employee-funded disability or leave premium. New Hampshire's voluntary paid leave plan is opt-in and employer-based. The calculator therefore shows federal income tax after the $16,100 standard deduction and FICA at 7.65%, and nothing else.
How much taxes are taken out of paychecks in New Hampshire?
On a $60,000 salary in 2026, a single filer in New Hampshire pays about $5,020 in federal income tax and $4,590 in Social Security and Medicare, a total of $9,610, and nothing to the state. Net pay is about $50,390 a year, $1,938 every two weeks.
One caveat for commuters: a New Hampshire resident who works in Massachusetts pays Massachusetts tax on those wages, about $2,780 on $60,000, and a resident who works in Maine pays Maine tax. The no-tax advantage applies to people who live and work in New Hampshire or work in another no-tax state remotely.
New Hampshire compared with its neighbours
New Hampshire's neighbours all tax wages: Massachusetts at a flat 5% (about $2,780 on a $60,000 single salary), Maine at 5.8% to 7.15% (about $2,870) and Vermont at 3.35% to 8.75% (about $1,580). The contrast with Maine along the Piscataqua and with Massachusetts along Route 3 is the reason the southern tier of New Hampshire has grown as a commuter belt.
The trade-off residents cite is property tax. New Hampshire's effective property tax rate is about double Massachusetts's, and on a typical home that can exceed the income tax a Massachusetts resident pays on a modest salary. This page states the income tax figures only.
Does New Hampshire have state income tax?
No. New Hampshire has no tax on wages and, since 1 January 2025, no tax on interest and dividends either, so a New Hampshire paycheck has only federal income tax, Social Security and Medicare withheld. New Hampshire funds itself through property taxes, which are among the highest per capita in the country, business profits and enterprise taxes, and a 9% tax on meals and hotel rooms; it has no sales tax.
The repeal of the interest and dividends tax, phased in from 2021 under HB 2, made New Hampshire the ninth state with no individual income tax of any kind. New Hampshire residents who commute to Massachusetts or Maine pay those states' tax on the wages earned there, with nothing to credit it against.