State retirement tax · New Hampshire
Retirement tax rules for New Hampshire residents (2026 guide)
New Hampshire has no general individual income tax. Here's the full picture for retirees.
Last reviewed May 3, 2026
Editorial review pending — see editorial process
Effective rate
0%
Taxes Social Security?
No
Approx. tax on $90k income
$0
Pension carve-outs
Yes
New Hampshire is one of nine US states with no individual income tax, and it doesn't tax Social Security benefits either. For retirees, that's the cleanest possible state-tax picture: every dollar of withdrawal, pension, and SS income passes through state-tax-free. The trade-offs show up in property taxes, sales taxes, and state-funded services — none of which Yearfold's calculator models — so factor those in separately when comparing to a higher-tax state with strong public infrastructure.
What New Hampshire taxes (and what it doesn’t)
New Hampshire has no general individual income tax. That means no state tax on traditional IRA / 401(k) withdrawals, no state tax on Roth conversions, no state tax on pension income, and no state tax on Social Security benefits. The state revenue model relies on sales taxes, property taxes, and (in some cases) corporate or severance taxes instead — your retirement spending pattern matters more than your retirement income for what you actually owe.
State-specific note
Interest & dividend tax fully repealed for tax year 2025.
A worked example
Worked example. A New Hampshire retiree with $60,000 of pension and IRA withdrawals plus $30,000 of annual Social Security pays $0 in state income tax. The same household in California (9.3% top bracket) would pay approximately $3,600 in state tax annually — most of the gap.
Should you relocate?
Retirees frequently relocate TO New Hampshire from high-tax states (CA, NY, NJ, OR) for the state-tax savings alone. The move pencils when the annual tax differential exceeds the moving cost amortised over your remaining horizon. For a couple with $1.5M+ in retirement income, the New Hampshire tax savings can run $10K-$25K/year vs a 6-9% state.
See how New Hampshire state tax shapes your retirement plan
The calculator’s Taxes tab uses the 0.00% effective rate above and the SS-exemption flag automatically. Run your specific numbers and see the year-by-year tax forecast.
Run my numbers →Frequently asked
Does New Hampshire tax my Social Security?
No. New Hampshire fully exempts Social Security benefits from state income tax. You'll only owe state tax on non-SS retirement income (401(k), IRA withdrawals, pensions, brokerage gains).
What's the effective state tax rate on my retirement income?
New Hampshire's approximate effective rate for retirement-bracket income is 0.00%. For a $90k retirement income with $30k of Social Security, you'd owe roughly $0/year in state tax. Real liability varies with bracket structure, age-based exclusions, and pension carve-outs.
Should I relocate to New Hampshire for retirement?
It depends on the size of your retirement income, the destination state's effective rate, and your moving costs. The state-tax differential alone is rarely the decisive factor for normal-income retirees. For households with $1M+ retirement income, multi-year tax-arbitrage savings can exceed $20k/year — enough to drive the decision.
Are pension benefits taxed differently in New Hampshire?
Many states have specific carve-outs for pension income — particularly for public-sector pensions (teachers, firefighters, police, military). Interest & dividend tax fully repealed for tax year 2025. Yearfold's calculator uses an effective-rate approximation; real liability may be lower if you qualify for a pension exclusion.
Does this apply to property tax too?
No. This page covers state INCOME tax only. Property tax in New Hampshire is set by local jurisdictions (county / city / school district) and varies dramatically within the state. For a complete retirement-cost picture, consult your specific county's tax assessor.
Primary sources
Effective-rate and SS-taxation flags above are derived from these sources. We re-verify each annually.
Related reading
Alaska retirement tax rules →
Comparable effective rate (0.00% vs 0.00%).
Pennsylvania retirement tax rules →
For perspective from a different tax tier.
Utah retirement tax rules →
An example of a state that DOES tax Social Security.
Run my numbers →
The calculator's Taxes tab uses the same per-state effective rate.
How the Monte Carlo actually works →
2,000-word methodology page — covers state tax modelling.