How New Hampshire taxes retirement income
New Hampshire has no state income tax, so no retirement income is taxed at the state level: not Social Security, not pensions, and not 401(k) or IRA withdrawals. This makes New Hampshire one of the more tax-friendly states for retirees. Federal income tax still applies.
Retirement income tax in New Hampshire, at a glance
| Income type | Taxed by New Hampshire? |
|---|---|
| Social Security | No |
| Pensions | No |
| 401(k) / IRA withdrawals | No |
| Estate / inheritance tax | None |
| Avg. property tax rate | 1.5% of home value |
Does New Hampshire tax Social Security benefits?
No. New Hampshire does not tax Social Security benefits. That follows automatically from having no state income tax.
Does New Hampshire tax pensions and 401(k) or IRA withdrawals?
No. With no state income tax, New Hampshire does not tax pension income or withdrawals from 401(k) plans and IRAs. You still owe federal tax on withdrawals from traditional (pre-tax) accounts.
For the mechanics of required withdrawals in retirement, see what is an RMD.
Sources
- New Hampshire taxation of retirement income (Social Security, pensions, 401(k)/IRA): New Hampshire Department of Revenue / Taxation.