Massachusetts vs New Hampshire Taxes
Compare the total tax burden between Massachusetts (5% + 4% surtax over $1.1M) and New Hampshire (no income tax). Enter your income to see which state saves you more.
| Tax Component | Massachusetts | New Hampshire |
|---|---|---|
| Federal Tax | $13,170 | $13,170 |
| State Tax | $4,780 | $0 |
| FICA | $7,650 | $7,650 |
| Total Tax | $25,600 | $20,820 |
| Take-Home | $74,400 | $79,180 |
| Effective Rate | 25.60% | 20.82% |
| Annual Difference | $4,780 more | $4,780 less |
The $4,780 difference is primarily because Massachusetts has a flat income tax with a surtax (top rate 9.0%), while New Hampshire has no state income tax. At your income level, Massachusetts's marginal rate is 5.0%.
Why the difference
You'd save $4,780/year ($398/month) in New Hampshire vs Massachusetts.
Tax structure
Massachusetts has a flat 9.0% state income tax, while New Hampshire has no state income tax.
Effective rate at your income
At $100,000, New Hampshire's effective state rate is 0.0% vs 4.8% in Massachusetts — a 4.8 percentage point gap.
Tip: For most earners, the flat 5% rate is straightforward. If your income approaches $1 million (including capital gains), the additional 4% surtax creates a cliff — $1 of income over $1M costs an extra $40,000 in tax. Timing income around this threshold can be valuable.
Tip: With the interest and dividends tax now repealed, New Hampshire joins the fully no-income-tax group. However, property taxes are notably high — budget $6,000-$10,000+ annually on a median-value home.
Massachusetts Total Tax
$25,60025.60% effective rate
New Hampshire Total Tax
$20,82020.82% effective rate
Annual Savings
$4,780by living in New Hampshire
Massachusetts vs New Hampshire: The original tax border war
The Massachusetts–New Hampshire border is America's original tax migration story. New Hampshire charges no income tax (its interest and dividends tax was fully phased out in 2025), while Massachusetts imposes a 5% flat income tax on most income plus a 4% "millionaire's tax" surcharge on income above $1 million—bringing the top rate to 9%. For the hundreds of thousands of workers who live along the I-93 and I-95 corridors, the state line represents a clear financial boundary.
The "live in New Hampshire, work in Massachusetts" strategy is extremely common but comes with complications. Massachusetts taxes nonresidents on income earned within the state, so a New Hampshire resident commuting to a Boston office pays Massachusetts income tax on that salary. The savings come from non-Massachusetts income: investment income, a spouse's remote work income, and eventually retirement income. For dual-income households where one spouse works remotely, moving to New Hampshire can save thousands on the remote spouse's income while the commuting spouse's tax stays roughly the same.
New Hampshire compensates for its lack of income tax with the highest property taxes in the nation by some measures, with effective rates averaging 1.66%. Massachusetts averages about 1.07%. On a $500,000 home, that gap costs New Hampshire homeowners about $2,950 more per year. The trade-off is clear: New Hampshire taxes wealth (through property) while Massachusetts taxes income. Which system costs you less depends entirely on the ratio of your income to your property value—high earners with modest homes favor New Hampshire; lower earners in expensive homes favor Massachusetts.
Key Differences Beyond Income Tax
| Category | Massachusetts | New Hampshire |
|---|---|---|
| Income Tax | 5% flat tax on most income; 4% surtax on income above $1M (total 9%); no local income taxes | No income tax (interest and dividends tax fully phased out in 2025) |
| Property Tax | Effective rate ~1.12%; varies by municipality; residential exemption available in some cities | Effective rate ~1.86%; among the highest in the U.S.; no broad-based tax to offset |
| Sales Tax | Flat 6.25% statewide; no tax on clothing under $175; no tax on groceries | No sales tax (one of 5 states with none) |
| Commuter Dynamics | Taxes nonresident income earned in MA; remote work sourcing rules contested | NH residents working in MA pay MA tax on MA-source income; non-MA income is tax-free |
| Business Taxes | Corporate excise tax 8%; strong biotech/pharma/tech economy | Business Profits Tax 7.5% + Business Enterprise Tax 0.55%; combined effective rate can rival MA |
Who Benefits from Moving?
Dual-income households with one remote worker
If one spouse earns $100,000 commuting to Boston (taxed by MA regardless) and the other earns $100,000 remotely, moving from MA to NH saves $5,000 on the remote income alone—plus NH has no sales tax on daily purchases. The property tax increase on a $500,000 home costs $3,700 more, for a net savings of about $1,300 plus sales tax savings.
High earners above the millionaire surtax threshold
Massachusetts's 4% surtax on income above $1M brings the rate to 9%. An earner making $1.5M pays $20,000 in surtax alone. Living in New Hampshire eliminates this entirely. At this income level, NH's higher property tax is trivial by comparison.
Retirees with significant portfolio income
With New Hampshire's dividends and interest tax now gone, retirees with substantial investment income save the full Massachusetts 5% on dividends, interest, and capital gains. A retiree with $80,000 in retirement withdrawals saves $4,000/year in New Hampshire—partially offset by higher property taxes.
Bottom line: At $150,000 income (fully non-MA-source), New Hampshire saves $7,280 in income tax—but higher property taxes on a $500,000 home cost $3,700 more, leaving a net advantage of roughly $3,600 for New Hampshire.
Tax at Different Income Levels
| Income | Massachusetts Total Tax | New Hampshire Total Tax | Annual Savings |
|---|---|---|---|
| $75,000 | $16,938 | $13,408 | Save $3,530 |
| $100,000 | $25,600 | $20,820 | Save $4,780 |
| $150,000 | $43,489 | $36,209 | Save $7,280 |
| $200,000 | $60,853 | $51,073 | Save $9,780 |
Based on single filer, standard deduction, 2026 tax year. Includes federal income tax, state income tax, and FICA.
Why the difference
You'd save $4,780/year ($398/month) in New Hampshire vs Massachusetts.
Tax structure
Massachusetts has a flat 9.0% state income tax, while New Hampshire has no state income tax.
Effective rate at your income
At $100,000, New Hampshire's effective state rate is 0.0% vs 4.8% in Massachusetts — a 4.8 percentage point gap.
Tip: For most earners, the flat 5% rate is straightforward. If your income approaches $1 million (including capital gains), the additional 4% surtax creates a cliff — $1 of income over $1M costs an extra $40,000 in tax. Timing income around this threshold can be valuable.
Tip: With the interest and dividends tax now repealed, New Hampshire joins the fully no-income-tax group. However, property taxes are notably high — budget $6,000-$10,000+ annually on a median-value home.
Understanding Each State
Massachusetts
Massachusetts has a flat income tax rate of 5% on most income, plus an additional 4% surtax on income over $1 million (the 'millionaire tax' effective 2023). This creates an effective 9% rate on income above $1 million. MA does not offer separate standard deductions like the federal system.
Tip: For most earners, the flat 5% rate is straightforward. If your income approaches $1 million (including capital gains), the additional 4% surtax creates a cliff — $1 of income over $1M costs an extra $40,000 in tax. Timing income around this threshold can be valuable.
New Hampshire
New Hampshire has no state tax on wages or salary, but historically taxed interest and dividend income at 5%. This tax was repealed effective January 2025, making NH a fully no-income-tax state. Property taxes in NH are among the highest nationally, averaging ~1.86% of home value.
Tip: With the interest and dividends tax now repealed, New Hampshire joins the fully no-income-tax group. However, property taxes are notably high — budget $6,000-$10,000+ annually on a median-value home.
Key Comparison Points
Income tax structure: Massachusetts has a flat income tax (5% + 4% surtax over $1.1M), while New Hampshire has no state income tax.
Beyond income tax: State tax comparisons should also consider property tax rates, sales tax, and cost of living. A state with no income tax may have higher property or sales taxes that offset the savings.
SALT deduction cap: Under OBBBA, the 2026 federal SALT cap is $40,400, phasing out above $505,000 MAGI toward a $10,000 floor. This limits the federal tax benefit of living in a high-tax state, so the gross state tax difference remains close to the net difference for most earners — especially high earners inside the phaseout.
Frequently asked questions
Is it cheaper to live in Massachusetts or New Hampshire?
Based on income tax alone, New Hampshire has a lower tax burden. At $100K income, you'd save $4,780 annually in New Hampshire compared to Massachusetts. However, total cost of living also depends on property taxes, sales taxes, and housing costs.
How much would I save moving from Massachusetts to New Hampshire?
A single filer earning $100,000 would save approximately $4,780 per year in total taxes by living in New Hampshire instead of Massachusetts. At $150,000 income, the savings change to $7,280 per year.
What is the income tax rate in Massachusetts?
Massachusetts has a flat income tax with rates of 5% + 4% surtax over $1.1M.
What is the income tax rate in New Hampshire?
New Hampshire has no state income tax.
Does New Hampshire have income tax?
No, New Hampshire does not levy a state income tax. Residents pay only federal income tax and FICA. However, New Hampshire may have higher property taxes or sales taxes to compensate.