State-by-State Guide to Taxes on Retirees - New_Hampshire
Tool | November 2019

State-by-State Guide to Taxes on Retirees

New Hampshire

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The Bottom Line
Flag of New Hampshire

Not Tax-Friendly

Residents of the Granite State pay no taxes on Social Security benefits, pensions or distributions from their retirement plans—because there’s no general income tax. There’s no sales tax, either, so you can shop to your heart’s content.

Here’s the hitch: Median property taxes in New Hampshire are the third-highest in the U.S. Some relief on these is available for seniors, but the programs, run by towns and cities, are complex.

Though New Hampshire imposes a 5% tax on dividends and interest, a $1,200 exemption is available for residents 65 or older.

State Sales Tax

No sales tax

Income Tax Range

New Hampshire doesn’t have an income tax. But there’s a 5% tax on dividends and interest in excess of $2,400 for individuals ($4,800 for joint filers).

Social Security

Benefits are not taxed.

Exemptions for Other Retirement Income

Income from retirement plans is exempt from New Hampshire’s interest and dividends tax. Taxpayers age 65 and older also receive a $1,200 personal exemption.

Railroad Retirement benefits are also exempt.

Property Taxes

In New Hampshire, residents pay an average of $2,296 in taxes per $100,000 of assessed home value.

Tax breaks for seniors: An elderly exemption for property taxes is available to those age 65 and older who have lived in New Hampshire for at least five years. Towns and cities set additional eligibility rules, but the minimum exemption is $5,000 off the assessed home value. Property taxes can be deferred but accrue interest at the rate of 5% per year. The deferred property tax may not exceed 85% of the equity value of the residence. The deferral is available (if granted by the assessing officials) to any resident property owner who is at least 65 years old.

To be eligible for the Low and Moderate Income Homeowner's Property Tax Relief program in New Hampshire, you must own a home subject to the state education property tax, reside in the home as of April 1 of the year for which the claim for relief is made, and have a total household income of $20,000 or less if single or $40,000 or less if married or head of a household.

Vehicle Taxes

No sales tax is due, but vehicle registration is done at the town and county level, where taxes may be levied based on the vehicle’s value and age.

Inheritance and Estate Taxes

None.

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