Data Source and Methodology
Authoritative data: New Hampshire Department of Revenue Administration (DRA), “Taxes at a Glance” and Interest & Dividends Tax guidance. See:
- New Hampshire DRA — Taxes at a Glance (accessed 2024–2025): https://www.revenue.nh.gov/taxes-glance
- NH Revised Statutes Annotated (RSA) 77 — Interest and Dividends Tax: RSA 77
- NH DRA I&D FAQs: https://www.revenue.nh.gov/help/faqs/interest-dividends.htm
All calculations are strictly based on the formulas and data provided by this source.
The Formula Explained
$$ \text{Taxable I\&D} = \max\left(0, \; \text{I\&D Income} - \text{Exemptions}\right) $$
$$ \text{NH I\&D Tax} = \text{Taxable I\&D} \times r_{\text{year}} $$
$$ \text{Total NH State Income Tax} = \text{NH I\&D Tax} + 0 \cdot \text{Wages} $$
$$ \text{Effective NH Rate} = \frac{\text{Total NH State Income Tax}}{\max(1,\; \text{Wages} + \text{I\&D Income})} $$
Glossary of Variables
- Tax year: The filing year that sets the applicable NH I&D tax rate r_year (0% for 2025+).
- Filing status: Your filing category (for exemptions guidance; NH wage tax remains 0%).
- Wages/salary: Earned income; NH state tax on wages is 0%.
- Interest: Annual taxable interest income subject to NH I&D rules.
- Dividends: Annual dividend income subject to NH I&D rules.
- Exemptions: Total allowed deduction from I&D income per NH rules for the selected year and your circumstances.
- NH taxable I&D: Interest + Dividends − Exemptions, floored at zero.
- NH I&D tax: Taxable I&D multiplied by the year’s NH rate.
- Effective NH rate: Total NH tax divided by total income (wages + I&D).
How It Works: A Step-by-Step Example
Suppose tax year = 2024, filing status = Single, wages = $60,000, interest = $1,500, dividends = $1,200, exemptions = $2,400.
- I&D Income = 1,500 + 1,200 = 2,700
- Taxable I&D = max(0, 2,700 − 2,400) = 300
- r_year (2024) = 3% = 0.03
- NH I&D Tax = 300 × 0.03 = $9.00
- NH wage tax = 0% × 60,000 = $0
- Total NH State Income Tax = 9 + 0 = $9
- Effective NH Rate = 9 ÷ (60,000 + 2,700) ≈ 0.0145%
Frequently Asked Questions (FAQ)
Does New Hampshire tax wages?
No. NH does not levy a state income tax on earned wages or salaries.
What is taxed in New Hampshire?
Historically, NH taxed interest and dividends. For tax years beginning in 2025 and later, the I&D tax rate is 0% (repealed). Always confirm with NH DRA for your filing year.
What rate does this calculator use?
It uses NH’s published I&D rates by year: 5% (2022 and prior), 4% (2023), 3% (2024), and 0% (2025+).
How should I enter exemptions?
Enter your total allowed I&D exemptions for the selected year based on NH rules for your filing status and any age/blindness additions. If unsure, check “Taxes at a Glance” and NH DRA FAQs.
Are capital gains taxed by NH?
No. NH does not tax capital gains at the state level.
Is Social Security or pension income taxed?
No. NH does not tax Social Security benefits or pension income.
Is this calculator tax advice?
No. It is an educational tool. For personal advice, consult NH DRA publications or a qualified tax professional.