New Hampshire Tax Brackets Explained (2026)
New Hampshire is one of the nine US states with no state income tax. Residents only pay federal income tax and FICA payroll taxes. This makes New Hampshire attractive for high earners — a $200,000 income that would face 9–10% state tax in California or New York faces zero additional state burden here.
The median household in New Hampshire earns $85,000/year. At that income (single filer), the federal effective rate is approximately 12–14%, bringing total income tax (federal + state) to roughly 12–14%.
How Marginal vs. Effective Rate Works
The marginal rate is the rate on your last dollar of income — it does not apply to all income. The effective rate is your total tax divided by total income. For example, someone earning $100,000 in New Hampshire has a 22% federal marginal rate but an effective federal rate of roughly 15%, because the first $44,725 (2024) is taxed at 10% and 12%, not 22%.