Cost of Living in New Hampshire
Things cost about ▲ 4% more in New Hampshire than the national average.
What Things Cost in New Hampshire
Compared to the US national average
See raw index numbers
US national average = 100. Source: BEA Regional Price Parities 2023.
New Hampshire is the no-income-tax, no-sales-tax state of New England. As of 2025, the state eliminated its last remaining tax on interest and dividends, making it truly income-tax-free. This combination, unique in the Northeast, has made New Hampshire a magnet for people who want New England life without New England taxes. The trade-off is property taxes: at roughly 1.86% effective rate, they are among the highest in the nation. New Hampshire funds its schools and local services almost entirely through property taxes, which means your tax bill is concentrated on your home rather than spread across income and consumption.
New Hampshire at a Glance
Taxes in New Hampshire
New Hampshire has no state income tax. That's money in your pocket that residents of most other states don't keep. Property taxes run about 1.57% of home value, which on a $390,000 median home means roughly $6,123/year.
Explore New Hampshire
FAQ About New Hampshire
No. New Hampshire eliminated its last form of income tax (a 5% tax on interest and dividends) at the end of 2024. As of 2025, there is no state tax on wages, salaries, capital gains, interest, dividends, or any other form of income. Combined with no sales tax, New Hampshire is one of the most tax-friendly states in the country for income. Property taxes, however, average about 1.86%, which is very high.
New Hampshire has no income tax and no sales tax, so it funds local schools and government almost entirely through property taxes. The state also provides less aid to municipalities than most states, pushing costs onto local property tax payers. The effective rate of about 1.86% means a $400,000 home costs roughly $7,440 per year in property taxes, a significant ongoing expense.
For high earners, often yes. A household earning $200,000 saves roughly $10,000 or more per year by living in New Hampshire versus Massachusetts, thanks to no income tax. Housing in southern New Hampshire is generally cheaper than the Boston metro, though it has risen. The property tax rate is higher, but on a lower-valued home, the absolute dollars can still be less than the Massachusetts income tax bill.