New Hampshire has no state income tax on wages, and as of 2025 it has no income tax at all: the old 5% tax on interest and dividends was fully repealed. So the only money leaving your paycheck for taxes is federal.
Combined with no sales tax either, New Hampshire is one of the most tax-light states for earners in the country. Here is what still comes out of a New Hampshire paycheck, and how the state pays for itself instead. See your exact take-home with the free New Hampshire paycheck calculator.
How New Hampshire's income tax works
New Hampshire does not tax wages, and its former 5% tax on interest and dividend income was phased out and fully repealed effective January 1, 2025. Your employer withholds only federal income tax and FICA at 7.65% (6.2% Social Security up to the wage base, plus 1.45% Medicare). There is no state or local income tax anywhere in New Hampshire.
Because there is no state layer, a New Hampshire worker keeps far more of the same salary than a neighbor in Massachusetts or Vermont. The gap is simply the state income tax they never pay.
Your take-home on a $65,000 salary in New Hampshire
Here is how a $65,000 salary breaks down for a single filer, using 2025 federal and FICA figures alongside New Hampshire's no state income tax.
| Item | Annual |
|---|---|
| Federal income tax | $5,246 |
| FICA (Social Security + Medicare) | $4,973 |
| New Hampshire income tax | $0 |
| Take-home pay | $54,782 |
| Percent of gross kept | 84.3% |
On a $65,000 salary a single filer keeps about $54,782, or 84.3% of gross, with no state income tax form to file. That is roughly $3,000 more than a worker nets in neighboring Massachusetts. Many people even live in low-tax New Hampshire and shop sales-tax-free while commuting to higher-paying jobs across the border. Compare with Massachusetts.
No income tax and no sales tax, so property taxes pay the bills
New Hampshire is unusual for having neither a wage income tax nor a general sales tax. It funds itself largely through property taxes, which are among the highest in the country. So the tax burden lands on what you own (especially a home), not on what you earn or spend.
With the interest-and-dividends tax now gone, even investment income is untaxed by the state, a meaningful change for retirees who used to owe that 5%.
How to keep more of your New Hampshire paycheck
Even without a state tax to shelter, a traditional 401(k) or HSA still lowers your federal tax, and an HSA also avoids FICA. In a no-income-tax state like New Hampshire, those accounts are the main remaining lever to push your take-home rate even higher.