No Tax on Capital Gains, Dividends, and Interest in New Hampshire

When investors and retirees analyze where to live, few factors matter more than how their income is treated. In New Hampshire, that treatment is simple: investment income is not taxed.

A Complete Repeal by 2025

“As of January 1, 2025, there is no longer an interest and dividends tax on income received by New Hampshire residents.” — Patrick Collins, MLAN Middleton

This repeal finalized the state’s transformation into a true zero-income-tax jurisdiction. It means all investment-related income — dividends, interest, and capital gains — now remains entirely untaxed at the state level.

For those who have built significant portfolios or rely on investment distributions in retirement, this change has measurable impact. Every dollar stays invested, compounding faster without the drag of state taxation.

How It Compares to Neighboring States

While Massachusetts and Connecticut tax both ordinary income and capital gains, New Hampshire does not.

• Massachusetts: 5% base income tax, rising to 9% for earners above one million dollars under the new Millionaire Tax.

• Connecticut: Progressive income tax up to 6.99%, plus an estate tax that can reach 12%.

• New Hampshire: 0% on all personal income, capital gains, dividends, and retirement distributions.

For a retiree living off investments or a business owner planning a liquidity event, the contrast can amount to six or seven figures in long-term savings.

A Simpler Way to Grow and Preserve Wealth

No complex deductions. No hidden surcharges. No extra reporting.

New Hampshire’s approach allows residents to focus on planning and performance rather than compliance. This simplicity benefits investors managing diverse portfolios, retirees drawing income from multiple accounts, and families structuring long-term trusts or family offices.

It also strengthens estate planning. Without state-level taxes on gains or income, trusts can reinvest distributions more efficiently, supporting multi-generational preservation of capital.

Who Benefits Most

• High-net-worth individuals seeking predictable, low-tax residency near major Northeast markets.

• Retirees who rely on portfolio income, pensions, or IRA withdrawals.

• Business owners preparing for a sale or exit who want to retain more of the proceeds.

• Family offices and trustees managing large holdings who value tax-neutral jurisdictions.

For each of these groups, the shift to New Hampshire provides both immediate savings and long-term control.

Explore Related Topics

• Why New Hampshire for Tax Purposes

• How New Hampshire’s Lack of Income Tax Benefits High-Net-Worth Individuals and Retirees

• Relocating to New Hampshire: Financial and Lifestyle Advantages

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