No state income tax
How New Hampshire taxes retirement income
New Hampshire has no personal income tax, so the state takes nothing from your Social Security, your pension or your withdrawals from a 401(k), 403(b), 457(b) or IRA. That holds no matter where the pension comes from: a New Hampshire plan, another state’s teacher system, a company pension or the federal government.
New Hampshire used to tax interest and dividends, which mattered to retirees living on investment income. That tax ended for tax periods starting on or after January 1, 2025, so investment income is now free of state tax too. The trade-off is property tax, which is among the highest in the country.
Federal income tax still applies everywhere. Your pension and traditional retirement account withdrawals are taxed by the IRS as ordinary income, and up to 85% of your Social Security can be taxable federally depending on your other income.
Questions
Does New Hampshire tax pensions?
No. New Hampshire has no personal income tax, so pensions of every kind are free of state tax.
Does New Hampshire tax Social Security?
No. With no income tax, Social Security benefits are not taxed by the state.
If I move to New Hampshire, can my old state still tax my pension?
No. Federal law (4 U.S.C. 114) bars states from taxing the pension income of people who no longer live there, including government pensions and most retirement plan payments.