Does New Hampshire Tax Lottery Winnings?

August 25, 2015

We got a message from a reader who noticed that our report on taxes on lottery winnings by state says that New Hampshire has no income tax. He said while that’s true, he remembered a 10 percent tax on lottery winnings and asked us to check it out.

He is right that such a tax existed, but only for gambling winnings between July 1, 2009 and May 22, 2011. After the tax went into effect, lottery and racetrack officials noticed plummeting revenue, particularly in areas bordering neighboring states. So New Hampshire residents can enjoy gambling winnings free of state tax. (They still owe federal tax, and visitors to New Hampshire must pay tax on any winnings to their home state.)

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