New Hampshire Residents Enjoy Nation’s Third-Lowest Tax Burden, Lowest in New England

Concord, N.H. — As tax season reaches its peak, New Hampshire residents can take comfort in knowing they carry one of the lightest state and local tax burdens in the nation, according to a new report from WalletHub. The Granite State ranks third-lowest in overall tax burden among the 50 states—making it the most taxpayer-friendly state in New England.

WalletHub’s 2025 analysis looked at the share of personal income that goes to state and local taxes, focusing on three key categories: property taxes, individual income taxes, and sales and excise taxes. Unlike tax rates, which can vary widely depending on personal circumstances, this “tax burden” metric provides a clearer picture of how heavily states lean on their residents to fund government services.

New Hampshire stood out in multiple areas:

• #1 in the nation for the lowest sales and excise tax burden, thanks in large part to the absence of a broad-based sales tax.

• Lowest overall tax burden in New England, outperforming all neighboring states including Vermont, Massachusetts, and Maine.

• Third overall in the U.S., behind only Alaska and Wyoming

  
  

While Vermont was found to have the highest property tax burden as a share of income, New Hampshire’s property taxes—often considered high in absolute terms—appear far more manageable when measured against personal income. And unlike most states, New Hampshire continues to hold the line on individual income taxes, taxing only interest and dividends, not wages.

“It’s easy to be dismayed at tax time when you see just how much of your income you lose,” said Chip Lupo, an analyst with WalletHub. “Living in a state with a low tax burden can alleviate some of that stress.”

The findings underscore a key advantage New Hampshire offers its residents: a limited and predictable tax structure. While all states levy some form of property or excise tax, New Hampshire's avoidance of broad-based income and sales taxes keeps its overall burden low—a factor often cited by advocates of limited government and fiscal restraint.

For Granite Staters, it’s another reminder that when it comes to keeping more of what you earn, New Hampshire remains one of the best places to call home.