New Hampshire Income
Tax Rates & Rules

No tax on W-2 wages, repeal of the Interest and Dividends Tax and the distinction between personal and business taxes.

New Hampshire does not impose an income tax on an individual's reported W-2 wages. For 2026, employees do not pay a New Hampshire personal income tax on ordinary wages and employers do not withhold a general New Hampshire wage income tax from employee paychecks.

New Hampshire previously taxed certain interest and dividend income, but the Interest and Dividends Tax was repealed for taxable periods beginning after December 31, 2024. That repeal means New Hampshire has no broad individual income tax layer in 2026.

Does New Hampshire Have State Income Tax in 2026?

New Hampshire does not tax an individual's reported W-2 wages and its former Interest and Dividends Tax is no longer in effect for taxable periods beginning on or after January 1, 2025.

What Happened to the Interest and Dividends Tax?

New Hampshire repealed the Interest and Dividends Tax effective for taxable periods beginning after December 31, 2024. The tax had applied to certain interest and dividend income, not W-2 wages.

The last general calendar-year period subject to the tax was 2024. New Hampshire no longer provides 2025 Interest and Dividends Tax forms because taxpayers are not required to file a 2025 return for that repealed tax. Prior-year liabilities can still be audited or collected under the applicable rules.

Do New Hampshire Employees Pay State Income Tax on Wages?

No. New Hampshire does not impose state income tax on an individual's reported W-2 wages. A standard employee paycheck should therefore not contain a New Hampshire personal income tax withholding line.

Federal income tax, Social Security, Medicare plus other lawful payroll deductions can still reduce take-home pay. Employees can use the New Hampshire paycheck calculator to estimate those payroll deductions without adding a nonexistent state wage income tax.

Who Has to File a New Hampshire State Income Tax Return?

A wage earner does not file a general New Hampshire individual income tax return for W-2 wages because New Hampshire does not impose that tax. The former Interest and Dividends Tax no longer creates a 2026 individual filing requirement.

Individuals can still have federal filing duties or another state's income tax filing requirement. Business owners can also have New Hampshire business tax obligations that are separate from personal wage income tax.

How Is New Hampshire Taxable Income Calculated?

New Hampshire does not calculate taxable income for a general individual wage income tax in 2026. There is no statewide individual tax base that starts with federal adjusted gross income then applies personal deductions or tax brackets.

This is why generic state-tax templates can be misleading for New Hampshire. Terms such as personal standard deduction, individual state brackets and wage withholding do not apply in the same way they do in states with broad individual income taxes.

How New Hampshire Treats Remote Workers

New Hampshire does not tax remote-worker wages through a personal wage income tax. The key question is whether another state has the right to tax the worker based on residency, physical work location or income-source rules.

A New Hampshire resident working from a New Hampshire home for an out-of-state employer generally has no New Hampshire wage income tax. If the worker performs services in another income-tax state, that other state can potentially impose tax under its nonresident sourcing rules.

How Part-Year Residents Are Treated

New Hampshire does not require a part-year personal wage income tax return because it does not tax W-2 wages. After the Interest and Dividends Tax repeal, a move into or out of New Hampshire during 2026 does not create a 2026 part-year I&D return either.

A person who moves from a state with an income tax can still need a part-year return in the former state. Income that remains sourced to another state after the move can also remain taxable there.

Does New Hampshire Tax Retirement Income or Capital Gains?

New Hampshire does not impose a broad individual income tax on retirement distributions, pensions or ordinary capital gains. Federal tax treatment remains separate.

Investment income should not be confused with the former Interest and Dividends Tax. That tax was repealed for taxable periods beginning after December 31, 2024, so it does not create a 2026 individual tax on interest or dividends.

Business Taxes Are Separate From Personal Income Tax

New Hampshire does impose business taxes. The Business Profits Tax is currently 7.5 percent on taxable business profits for applicable periods, while the Business Enterprise Tax is 0.55 percent on the taxable enterprise value tax base.

For tax periods beginning on or after January 1, 2025, the Business Profits Tax filing threshold is more than $109,000 of gross business income. New Hampshire also reports a 2026 Business Enterprise Tax filing threshold of more than $298,000 of gross business receipts or enterprise value tax base.

These taxes can affect business owners, including some self-employed people, but they should not be described as employee wage income tax.

New Hampshire Income Tax vs. Other State Taxes

New Hampshire has other taxes even though it does not tax W-2 wages and has no general sales tax. Meals and rentals, business activity, property transactions and other categories can have separate tax rules.

For consumer transaction tax questions, the New Hampshire sales tax guide explains why the state's no-general-sales-tax structure does not mean every transaction is tax-free.

Payroll Records in a No-Wage-Income-Tax State

A New Hampshire pay stub should reflect actual deductions. It can show federal income tax, Social Security, Medicare, benefit deductions and other lawful amounts without inventing a state personal income tax line.

After genuine payroll values are verified, the New Hampshire pay stub generator can organize earnings and deductions into a clear payroll statement.

Businesses that need a broader payroll-document workflow can make pay stub records after confirming the underlying payroll information.

Methodology and Current-Year Review

This guide reflects New Hampshire Department of Revenue Administration guidance confirming that W-2 wages are not subject to New Hampshire individual income tax plus the repeal of the Interest and Dividends Tax effective January 1, 2025. Business-tax information is included only to prevent confusion between business obligations and personal wage income tax.