Does New Hampshire tax retirement income?

No. New Hampshire has no state income tax on wages, Social Security, pensions, or 401(k) and IRA distributions. Its former tax on interest and dividends was fully repealed starting with the 2025 tax year, so all retirement income is state-tax-free.

Is New Hampshire good for retirees?

On income taxes, yes — New Hampshire takes nothing from Social Security, pensions, or retirement withdrawals. The tradeoff is some of the highest property taxes in the country, so retired homeowners should weigh that local cost.

What was the Interest and Dividends tax?

New Hampshire historically taxed interest and dividend income at a flat rate, which could touch some retirees living on investment income. That tax was phased down and fully repealed effective for the 2025 tax year, so it no longer applies.

Do I still owe federal tax on retirement income in New Hampshire?

Yes. Federal income tax can apply to up to 85 percent of Social Security benefits and to taxable pension and traditional 401(k) or IRA withdrawals. New Hampshire's lack of an income tax does not change federal liability.

Are Roth withdrawals taxed in New Hampshire?

Qualified Roth IRA and Roth 401(k) withdrawals are tax-free federally, and New Hampshire imposes no state income tax either, so they are entirely tax-free in the state for retirees who meet the federal qualification rules.

New Hampshire Retirement Income Tax Calculator

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New Hampshire is one of the most income-tax-friendly states for retirees: it levies no state income tax on Social Security, pensions, or retirement-account withdrawals. With the former Interest and Dividends tax fully repealed for 2025, even investment income escapes state tax. This calculator confirms a zero state tax on whatever retirement income you enter.

How it works

The state tax on every common retirement stream is the same — zero:

Social Security        →  NH state tax = $0
Pension / annuity      →  NH state tax = $0
401(k) / IRA withdrawal →  NH state tax = $0
Interest & dividends   →  NH state tax = $0 (repealed for 2025)
Total NH state tax = $0 on all retirement income

Because New Hampshire has no broad income tax, the size of each income stream does not change the state result. The calculator still totals your income so you can see your gross retirement budget, and reminds you that federal tax may apply.

Example

A retiree with $30,000 of Social Security, $24,000 of pension income, and $20,000 of 401(k) withdrawals has $74,000 of gross retirement income. New Hampshire’s state tax on all of it is $0. Federal tax may still apply to the pension, the withdrawals, and part of the Social Security.

Notes

This models state income tax only. Federal income tax can apply to up to 85 percent of Social Security and to taxable pension and traditional 401(k)/IRA withdrawals. New Hampshire’s high property taxes are a separate cost that retired homeowners should factor in. Verify with the New Hampshire Department of Revenue Administration and irs.gov.