New Hampshire has no state income tax and no sales tax, which makes it one of the most tax-friendly states in New England. The tradeoff is property taxes: at 1.93% average (and over 2.5% in some towns), they’re among the highest in the nation and can erase the income tax savings for moderate earners. The state’s economy benefits heavily from proximity to Boston — many southern NH residents earn Massachusetts wages while paying New Hampshire’s lower taxes. Manchester and Nashua are the state’s economic centers, while the Lakes Region, Seacoast, and Upper Valley attract retirees and remote workers. New Hampshire works best financially for higher-income households who benefit most from the no-income-tax structure.
New Hampshire at a Glance
| Metric | Value | National Rank |
|---|---|---|
| Population (2024) | 1.4 million | 41st |
| Median household income | $90,845 | 4th highest |
| Median home price | $450,000 | Above average |
| Cost of living index | 112 | Above average |
| State income tax | None (as of 2025) | N/A |
| Sales tax | None | N/A |
| Property tax (effective rate) | 1.93% | 3rd highest in US |
New Hampshire has neither income tax nor sales tax — one of only two states (along with Alaska) with neither. But it makes up for it with the 3rd highest property tax rate in the nation.
Income and Housing
| City/Area | Median Income | Median Home Price | Median Rent (2BR) |
|---|---|---|---|
| Nashua | $88,000 | $475,000 | $1,700 |
| Manchester | $72,000 | $400,000 | $1,550 |
| Concord | $77,000 | $380,000 | $1,500 |
| Portsmouth | $82,000 | $550,000 | $2,000 |
| Keene | $58,000 | $300,000 | $1,250 |
| Lebanon/Hanover | $75,000 | $420,000 | $1,600 |
| Laconia (Lakes Region) | $62,000 | $350,000 | $1,350 |
The Property Tax Reality
| Home Value | Annual Property Tax (at 1.93%) | Monthly Cost |
|---|---|---|
| $300,000 | $5,790 | $483 |
| $400,000 | $7,720 | $643 |
| $500,000 | $9,650 | $804 |
| $600,000 | $11,580 | $965 |
Some towns exceed 2.5%, meaning a $400K home could cost over $10,000/year in property taxes alone.
No Income Tax vs. High Property Tax: Who Wins?
| Income | Income Tax Saved | Extra Property Tax (vs. 1% avg on $400K home) | Net Benefit |
|---|---|---|---|
| $75,000 | $3,200 saved | $3,720 extra | -$520 |
| $100,000 | $4,600 saved | $3,720 extra | +$880 |
| $150,000 | $7,100 saved | $3,720 extra | +$3,380 |
Conclusion: NH is better for higher earners; renters and homeowners with expensive properties may not benefit as much.
New Hampshire Pros and Cons
| Financial Pros | Financial Cons |
|---|---|
| No income tax (fully, as of 2025) | 3rd highest property taxes in US |
| No sales tax | Above-average housing costs |
| 4th highest median income | Cold winters, high heating costs |
| Low crime rate | Limited public transportation |
| Access to Boston job market (southern NH) | Small state, limited metro areas |
Related: Cost of Living by State | States with No Income Tax | Property Tax by State