New Hampshire Tax Characteristics
New Hampshire has no personal income tax. Social Security retirement benefits are tax-free. Income from pensions and retirement accounts also untaxed. There is no sales tax, estate tax or inheritance tax.
Residents pay property taxes, assessed locally. Levels vary by town or city. There is also a 4% tax on interest and dividends over $2,400 for individuals, $4,800 for joint filers. This tax will start being phased out in 2024, ending in 2027.
Rentals taxed under State Meals and Rooms (Rentals) Tax. But state does not issue exempt certificates.
Business Environment in New Hampshire
New Hampshire ranked 7th overall for business tax climate. It is the only Northeast state in the top 10. The state competes for residents and businesses that will contribute to GDP growth.
Sales Tax Status in New Hampshire
New Hampshire is one of only five states, joining Alaska, Montana, Oregon, and Delaware, with no state sales tax. The lack of a sales tax stems from New Hampshire’s tax policy focus on limited government and frugality. While New Hampshire does not collect a sales tax, excise taxes are levied on the sale of certain products, including alcohol, cigarettes & tobacco, and gasoline. Residents pay property taxes, assessed locally. Levels vary by town or city.
New Hampshire provides a tax-friendly environment for ecommerce businesses looking to reduce costs and boost sales. Sales tax exemption forms can be downloaded from the New Hampshire Department of Revenue Administration.