The Tax Foundation

Tax Data, Charts, and Maps

New Hampshire

The Facts on New Hampshire's Tax Climate

Here are some basic facts on New Hampshire's tax system and how it compares to other states:

Tax Freedom Day Arrives on April 10 in New Hampshire
Tax Freedom Day is the day when Americans finally have earned enough money to pay off their total tax bill for the year. In 2009, New Hampshire taxpayers had to work until April 10 to pay their total tax bill, ranking the state 22nd in the nation. This is three days earlier than national Tax Freedom Day (April 13). The Tax Freedom Days of neighboring states are; Vermont April 12 (ranked 19th nationally); Maine, April 6 (ranked 33rd nationally) and Massachusetts April 16 (ranked 7th in the nation).
Full study of Tax Freedom Day, nationwide and in each state

New Hampshire's State/Local Tax Burden Among Nation's Lowest
In nearly every year of the past three decades, New Hampshire's state and local tax burden has ranked among the nation's lowest. Estimated at 7.6% of income, New Hampshire's state/local tax burden percentage ranks 46th highest in the nation, well below the national average of 9.7%. Taxpayers in New Hampshire pay $3,642 per capita in state and local taxes.
New Hampshire's State and Local Tax Burden, 1977-Present
Other States' State/Local Tax Burdens
Historical Chart Comparing All States' State/Local Tax Burdens from 1977 to 2008

New Hampshire's 2009 Business Tax Climate Ranks 8th
New Hampshire ranks 8th in the Tax Foundation's State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes; individual income taxes; sales taxes; unemployment insurance taxes; and taxes on property, including residential and commercial property. Neighboring states ranked as follows: Vermont (43rd), Maine (40th) and Massachusetts (32nd).
50-State Comparison of Business Tax Climates (data only)
2009 State Business Tax Climate Index, Sixth Edition (full study)

New Hampshire's Individual Income Tax System
New Hampshire's personal income tax system is one of the nation's most simple and inexpensive systems. With no separate tax brackets, New Hampshire's 5% flat income tax applies only to dividend and interest income. As a result many citizens have little or no income tax liability. New Hampshire's 2006 individual income tax collections were $62 per person, which ranked 42nd highest nationally.
50-State Table of Individual Income Tax Rates
50-State Table of State Individual Income Tax Collections
50-State Table of State and Local Individual Income Tax Collections Per Capita 

New Hampshire's Corporate Income Tax System
New Hampshire's corporate tax structure consists of one bracket, with a rate of 8.5% of income for corporations with gross receipts over $50,000. Among states levying corporate income taxes, this top rate ranks the state 11th highest nationally. In 2007, state-level corporate tax collections (excluding local taxes) were $453 per capita, which ranked 2nd highest nationally.
50-State Table of Corporate Income Tax Rates
50-State Table of State and Local Corporate Income Tax Collections Per Capita and Per Household
50-State Table of State Corporate Income Tax Collections Per Capita

New Hampshire Levies No Sales Tax; Gasoline and Cigarette Taxes Modest
New Hampshire levies no general sales or use tax on consumers. Alaska, Delaware, Montana and Oregon are the only other states not to levy a general sales tax. New Hampshire's gasoline tax stands at 19.6 cents per gallon, which ranks 39th highest nationally. New Hampshire's cigarette tax stands at $1.33 cents per pack of twenty, ranking 21st highest nationally. The gasoline tax was adopted in 1923, and the cigarette tax in 1939.
50-State Table of Sales and Excise Tax Rates
50-State Table of  State and Local General Sales Tax Collections Per Capita and Per Household
50-State Table of State and Local General Sales and Gross Receipts Tax Collections Per Household and Per Capita

New Hampshire's Property Taxes among Nation's Highest
As one of only two states that tax neither sales nor wages (Alaska is the other), New Hampshire is heavily dependent on property tax revenue. New Hampshire is one of the 37 states that collect property taxes at both the state and local levels. As in most states, local governments collect far more. New Hampshire's localities collected $1,832.72 per capita in property taxes in fiscal year 2006, which is the latest year the Census Bureau published state-by-state property tax collections. At the state level, New Hampshire collected $293.88 per capita during FY 2006. That brings its combined state/local property taxes to $2,126.60 per capita, ranking 3rd highest nationally.
State property tax collections per capita by state

Federal Tax Burdens and Expenditures: New Hampshire is a Donor State
New Hampshire taxpayers receive among the least amount of federal funding per dollar of federal taxes paid. Per dollar of federal tax collected in 2005, New Hampshire citizens received approximately $0.71 in the way of federal spending. This ranks the state 4th lowest among all states. This represents a slight fall from 1995 when New Hampshire received $0.75 per dollar of taxes in federal spending, ranking it 5th lowest nationally. Neighboring states and the amount of federal expenditures received per dollar of federal taxes collected were: Vermont ($1.08), Maine ($1.41), and Massachusetts ($0.82).
Comparing the amount of federal taxes sent to Washington with the amount of federal spending coming back to the state

Tax Data from The Tax Foundation

Maps