New Hampshire Retirement Income Tax Guide for Seniors
No. Since the Interest and Dividends Tax ended in 2025, New Hampshire taxes no personal income at all, and it has no general sales tax. The trade-off is some of the highest property taxes in the country, so the relief programs matter.
No. New Hampshire does not tax Social Security, pensions, retirement account withdrawals, wages, or (since January 1, 2025) interest and dividends. There is no general sales tax. Property tax is the main cost for retirees. Most towns offer an elderly exemption from age 65 with income and asset limits, and the state's Low and Moderate Income Homeowners Property Tax Relief program helps homeowners with income up to $37,000 (single) or $47,000 (married).
The last income tax is gone
New Hampshire never taxed wages or pensions, but for decades it taxed interest and dividends above an exemption. That tax was phased down and ended for tax periods beginning on or after January 1, 2025. Retirees who live on investment income now owe the state nothing on it. Social Security, pensions, annuities and IRA or 401(k) withdrawals were never taxed.
For the federal tax on your benefits, use the Social Security tax calculator.
What New Hampshire taxes instead
- No general sales tax. Everyday shopping, including groceries and medicine, carries no state sales tax.
- Meals and rooms tax: restaurant meals, hotel stays and car rentals are taxed at 8.5%.
- Property tax: the big one. Each town and city sets a rate that combines local school, town and county taxes with the Statewide Education Property Tax. Rates are high, and they differ sharply from one town to the next.
- Estate and inheritance tax: none.
Elderly exemption from your town
State law (RSA 72:39-a) lets towns and cities offer an exemption that takes a set amount off the assessed value of an older resident's home. Most towns have adopted one, and each sets its own numbers. The exemption usually gets larger at ages 65 to 74, 75 to 79, and 80 and older. To qualify you generally must:
- Be 65 or older on April 1 of the tax year, and have lived in New Hampshire for at least three years in a row before that date.
- Own and live in the home (married couples can qualify if either spouse meets the age rule).
- Have income and assets (not counting the home itself) under the limits your town has set.
Because the amounts vary so much, two towns a few miles apart can give very different savings. Ask your town assessing office for its current exemption amounts and income and asset limits. You apply with Form PA-29, the Permanent Application for Property Tax Credits and Exemptions, generally by April 15. Towns may ask for proof of income and assets with the application.
Tax deferral for elderly and disabled homeowners
If paying the tax would be a hardship, an elderly or disabled homeowner can ask the town to defer it. The deferred tax becomes a lien on the home and accrues interest, and it is paid when the home is sold or the estate is settled. It can prevent a forced sale, but it reduces what heirs receive.
State relief for low and moderate income homeowners
The Low and Moderate Income Homeowners Property Tax Relief program refunds part of the Statewide Education Property Tax. It is run by the state Department of Revenue Administration, not your town.
| Requirement | 2026 |
|---|---|
| Income, single | Adjusted gross income of $37,000 or less |
| Income, married or head of household | $47,000 or less |
| Home | You own a homestead subject to the Statewide Education Property Tax and lived there on April 1 |
| Filing window | After May 1 and no later than June 30 |
| How to file | Online through Granite Tax Connect, or on Form DP-8 |
There is no age requirement, so it helps retirees and younger homeowners alike. The state allows up to 120 days to process a claim. The award is modest, a share of the state education tax rather than the whole bill, but you can claim it on top of your town's elderly exemption. Questions go to the Department at (603) 230-5920.
Budgeting for a New Hampshire retirement
For many retirees, New Hampshire's lack of income and sales tax outweighs the property tax, especially if you own a modest home or rent. For owners of large homes in high-rate towns, the property tax can exceed what an income tax would have cost elsewhere. Before choosing a town, look up its tax rate per $1,000 of value and its elderly exemption, and multiply it out for the home you plan to buy.
Compare New Hampshire with other states in our state retirement income tax finder and the senior property tax exemption guide.
Frequently Asked Questions
Does New Hampshire tax Social Security or pensions?
No. New Hampshire does not tax Social Security, pensions or retirement account withdrawals. Its Interest and Dividends Tax ended on January 1, 2025, so investment income is not taxed either.
Does New Hampshire have a sales tax?
No general sales tax. Restaurant meals, lodging and car rentals are taxed at 8.5% under the meals and rooms tax.
How much is the New Hampshire elderly exemption?
It depends on your town. State law lets each town set exemption amounts, which usually rise at ages 75 and 80, along with its own income and asset limits. Ask your town assessing office.
Who qualifies for New Hampshire Low and Moderate Income property tax relief?
Homeowners with adjusted gross income of $37,000 or less (single) or $47,000 or less (married or head of household) who own and live in a homestead subject to the state education tax on April 1. File between May 1 and June 30.
Can I defer property taxes in New Hampshire?
Yes. Elderly and disabled homeowners facing hardship can ask their town for a deferral. The tax becomes a lien with interest, due when the home is sold or the estate is settled.
Sources: New Hampshire Department of Revenue Administration, Low and Moderate Income Homeowners Property Tax Relief page and 2026 announcement; RSA 72:39-a (elderly exemption) and RSA 198:57. Read October 2026. This page is general information, not tax advice, and is not affiliated with the State of New Hampshire or the IRS. Confirm amounts with your town assessing office. See our Data Sources page for how we source figures.