New Hampshire Announces No Personal Income Tax for 2026

New Hampshire is one of the simplest states for personal income taxes in 2026: you owe no New Hampshire state income tax on wages, salaries, interest, or dividends. Many residents have zero income tax liability at the state level, which matters if you’re moving to New Hampshire for work, school, or a new start.

This guide explains what the change means, who it affects, and what to do now to set up your taxes correctly—especially if you’re new to the U.S. tax system or recently moved to New Hampshire.

What New Hampshire’s 2026 income tax rules mean for you

New Hampshire has no state income tax on earned income (like wages or salaries) in 2026. The state also no longer taxes most common investment income for individuals because the Interest and Dividends (I&D) tax has been repealed for income earned in 2025 and later.

So for your 2026 income (the return you typically file in 2027), you won’t file a New Hampshire state income tax return for wages, and you won’t owe New Hampshire tax on ordinary interest or dividends.

What you still pay:
– Federal income tax (with brackets starting at 10% up to $12,000 single / $24,000 joint, rising to 37%)
– Property taxes if you own a home (average effective rate 1.61%–1.89%)
– Other taxes and fees that are not personal income tax (for example, the business profits tax at 7.5%, and some state fees such as motor vehicle registration costs increasing January 1, 2026)

Who benefits (and who still has tax work to do)

You benefit if you live or work in New Hampshire

You’ll feel the impact if you:
– Work in New Hampshire and earn wages there
– Live in New Hampshire and earn income from a job, self-employment, or common investments
– Are an immigrant or new arrival choosing New Hampshire as your long-term home base

New Hampshire’s lack of personal income tax can make your paycheck feel higher than in many other states. You still must handle federal withholding and federal filing.

You still must file federal taxes in most cases

Even with zero income tax liability at the state level, you often still must file a federal return, such as:
– Form 1040 (many U.S. tax residents)
– Form 1040-NR (many nonresident aliens for tax purposes)

If you’re in the U.S. on a visa, your federal tax form depends on whether you’re a “resident” or “nonresident” for federal tax rules. That classification is separate from your immigration status.

⚠️ Important: “No New Hampshire income tax” does not erase your federal filing duties.

Eligibility and prerequisites: what you need before you start

Before you set up your New Hampshire tax plan for 2026, make sure you can answer these questions:

• Where are you a resident for tax purposes?
  If you recently moved, you might have a part-year situation in another state that still requires a state return there.

• Do you earn income in another state?
  If you work across state lines or have a remote job tied to another state, you might still owe taxes to that other state.

• Are you a U.S. tax resident or nonresident for federal taxes?
  This affects which federal form you use and which rules apply to your income.

• Do you have investment income?
  New Hampshire does not impose a personal income tax in 2026, but the federal government still taxes interest and dividends.

⚠️ Important reminder: You must still comply with federal filing and withholding rules even if New Hampshire imposes no state income tax.

Step-by-step: set up your 2026 taxes after moving to New Hampshire

1) Confirm your New Hampshire residency and move details

Write down:
– Your move date into New Hampshire (if you relocated)
– Your New Hampshire address
– Any prior-state address you had during the year

Your move date can determine whether you still owe another state a part-year return.

Immigration note: if you’re a noncitizen and you move, keep your address current with USCIS. Use the official https://www.uscis.gov/addresschange.

2) Set your payroll withholding expectations

Because New Hampshire does not have wage income tax, your paycheck generally won’t include New Hampshire state income tax withholding.

Do this:
– Review your paystub to confirm what is withheld (federal withholding and other items).
– Update your federal withholding if your life situation changed (marriage, new child, second job).

If you work in another state while living in New Hampshire, ask your employer which state is listed for withholding.

3) Map out any non-New Hampshire filing obligations

You might still file a state return elsewhere if you:
– Worked in another state
– Lived in another state during part of the year
– Earned income sourced to another state

Create a simple list:
1. State(s) where you worked
2. State(s) where you lived during the year
3. State(s) connected to your business or rental property (if any)

This prevents a common surprise: thinking “New Hampshire has no income tax” means “I don’t file any state return anywhere.”

4) Track your federal income types (especially interest and dividends)

Even though New Hampshire’s prior Interest and Dividends (I&D) tax no longer applies for income earned in 2025 and later, the federal government still taxes many forms of investment income.

Track these items carefully:
– Bank interest
– Brokerage dividends
– Capital gains distributions
– Self-employment income if you freelance or do gig work

If you’re new to the U.S., keep every tax form you receive. These are often mailed in January and February.

5) File the right returns and keep clean records

For many people in New Hampshire, your annual “tax season” is mainly:
– A federal return
– Any required returns for other states (if your work or prior residence triggers them)

Keep copies of filed returns and W-2s/1099s. You may need them for loans, immigration filings, and future applications that ask for proof of income.

Documents you should collect (checklist)

Identity and immigration documents

• Passport biographic page
• Visa and I-94 record details (if applicable)
• Social Security number (SSN) or ITIN paperwork (if applicable)
• Proof of New Hampshire address (lease, utility bill, or similar)

Income documents (most common)

• W-2 (wages)
• 1099-NEC or 1099-K (contract or platform income)
• 1099-INT (interest)
• 1099-DIV (dividends)
• 1099-R (retirement distributions), if you have any

Proof of residency and move dates

• Lease or home purchase documents
• Moving receipts (helpful for personal records)
• Termination of prior lease, if you moved from another state

If you own property or run a business

• Property tax bills (New Hampshire property tax is often a major household cost)
• Business income and expense records if you are self-employed
• Estimated tax payment records (if you pay quarterly federal estimates)

You can also use this table to visualize key document groupings:

Fees and timeline: what to expect for 2026

Taxes you should plan to pay

• Federal income tax applies in New Hampshire like everywhere else in the U.S.
• Property taxes matter if you own a home, with average effective rates 1.61%–1.89%
• If you operate a business subject to state business tax rules, New Hampshire has a business profits tax at 7.5%

Practical timing

• Keep your 2026 income documents as they arrive in early 2027.
• File your federal return using the form that fits your tax residency and income type.
• If you have another-state filing duties, plan for that work at the same time.

Fees and other costs people forget

Even without a state income tax, New Hampshire funds government services in other ways. For example, motor vehicle registration costs increase January 1, 2026. Budget for state and local fees so they don’t catch you off guard.

Common mistakes to avoid in New Hampshire (especially for newcomers)

Treating “no state income tax” as “no tax filing”

New Hampshire’s personal income tax is not the same as your federal tax obligation. If you skip federal filing when you must file, you can create problems that follow you for years.

Forgetting prior-state or work-state tax returns

If you moved to New Hampshire from a state with an income tax, that state often still expects a part-year return. The same risk applies if your employer withholds for another state.

Mixing up immigration status with federal tax residency

A visa type does not automatically decide whether you file Form 1040 or Form 1040-NR. Federal tax residency rules are separate, and the wrong form can create delays and amended returns.

Not keeping investment tax forms

People often ignore 1099 forms because the amounts feel small. That can trigger IRS notices and amended returns.

Underestimating property taxes when comparing states

New Hampshire can feel “tax-free” until you price housing and see property taxes. If you’re choosing where to settle, compare total costs, not just income tax.

Next steps: what to do this week

1. Write down your 2026 “tax footprint.” List every state where you lived or worked. Keep it with your records.
2. Check your latest paystub. Confirm you see federal withholding and no New Hampshire wage withholding.
3. Create a simple tax folder. Save W-2s and 1099s as they arrive, plus proof of your New Hampshire address.
4. If you recently moved, update USCIS. Use the https://www.uscis.gov/addresschange.
5. If you want more immigration guides written for everyday life decisions, including moves and paperwork planning, visit VisaVerge.com.