New Hampshire has no state income tax. Your only income tax obligations are federal brackets. Calculate your exact marginal and effective federal tax rate below. Formula shown, sources cited — no account required.
New Hampshire is one of only a handful of states with no earned income tax. Wages, salaries, and self-employment income face zero state taxation. The state has historically levied a 5% tax on interest and dividend income, but this tax is being phased out annually and will reach zero in 2027. After that point, New Hampshire residents will owe no state income tax of any kind. Federal taxes still apply in full. At a median household income of $99,782, New Hampshire residents typically land in the 22% to 24% federal bracket, so the combined marginal rate on wages is simply the federal rate plus FICA — no state layer on top. For high earners and retirees with significant investment income, the phase-out of the interest and dividend tax represents a meaningful annual savings compared to their current bills. New Hampshire funds government services largely through property taxes and business taxes, which is why property tax rates are among the highest in the country. No estate or inheritance tax applies at the state level. Use the tax bracket calculator to model your federal tax obligation at New Hampshire income levels.
New Hampshire Tax Brackets Explained: No State Tax, Federal Only
New Hampshire is one of the nine US states with no state income tax. Residents only pay federal income tax and FICA payroll taxes. This makes New Hampshire attractive for high earners — a $200,000 income that would face 9–10% state tax in California or New York faces zero additional state burden here.
The median household in New Hampshire earns $99,782/year. At that income (single filer), the federal effective rate is approximately 12–14%, bringing total income tax (federal + state) to roughly 12–14%.
How Marginal vs. Effective Rate Works
The marginal rate is the rate on your last dollar of income — it does not apply to all income. The effective rate is your total tax divided by total income. For example, someone earning $100,000 in New Hampshire has a 22% federal marginal rate but an effective federal rate of roughly 15%, because the first $44,725 (2024) is taxed at 10% and 12%, not 22%.