New Hampshire Tax Policy & Rates 2026
Income tax, sales tax, property tax, and overall tax burden for New Hampshire in 2026, with political context.
No
No Income Tax
3.0% (interest/dividends only — being phased out)
Income Tax Rate
#45
Tax Burden Rank (1=highest)
#46
Property Tax Rank (1=highest)
Tax Policy Overview
New Hampshire has no sales tax and its income tax (on interest and dividends only) is being phased out, effectively becoming a no-income-tax state. Property taxes are among the highest in the nation — the price of no income or sales tax. This creates fiscal pressure on schools funded by property taxes.
Key Tax Rates
| Tax Type | Rate / Status |
|---|---|
| Income Tax | 3.0% (interest/dividends only — being phased out) |
| No Income Tax | No |
| Sales Tax | None |
| No Sales Tax | Yes |
| Corporate Tax | 7.5% |
| Property Tax Rank | #46 nationally (1=highest) |
| Overall Tax Burden Rank | #45 nationally (1=highest) |
Political Context
New Hampshire’s "Live Free or Die" tax philosophy — no income tax, no sales tax — creates one of the lowest overall state tax burdens. But property taxes are very high as they carry the fiscal load. Education funding through property taxes creates significant disparities between wealthy and poor communities.