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HEAD-TO-HEAD TAX COMPARISON · 2026

COUNTRY A New Hampshire VS COUNTRY B Colorado

Side-by-side analysis of income tax, effective rates, and take-home pay for New Hampshire and Colorado in 2026.

Daniel · CountryTaxCalc Updated June 2026 Tax Comparison 2026
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OVERVIEW
New Hampshire and Colorado offer a fascinating Northeast-versus-Rocky-Mountain comparison with opposite tax philosophies. New Hampshire is the only state in the continental US with both 0% income tax and 0% sales tax — but funds state services through property taxes averaging 2.04%, the 3rd highest in the country. Colorado charges a 4.4% flat income tax but partially refunds this through its constitutional TABOR mechanism (~$800/filer annually), and has one of the lowest property tax rates in the US at ~0.55%. At lower income levels with modest homes ($235K), Colorado's combination of low property tax and TABOR refunds can actually outperform New Hampshire. But at $100,000 income with a $300,000 home, New Hampshire's income tax saving ($4,400) combined with its sales tax advantage ($2,250) exceeds its property tax premium (~$4,470 more than Colorado), delivering a net $1,380 annual advantage — which grows steadily to $3,550 at $200K and $5,720 at $300K. New Hampshire's 0% sales tax adds $2,250/year in savings over Colorado's ~7.5% combined rate for a household spending $30,000 on taxable goods. For high earners, the combination of no income and no sales tax makes New Hampshire compelling. For homeowners of modest properties in the Denver metro who value Colorado's outdoor lifestyle and TABOR refunds, the comparison is genuinely close at lower income levels.
Section 01

The Big Picture

Top-line rates and effective take-home for a typical earner — including income tax, social contributions, and applicable surcharges.
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COUNTRY A
New Hampshire
TAX RATE
0%
No Income Tax and No Sales Tax — Northeast's Tax Haven
No income tax on wages or investment income (Interest & Dividends Tax repealed January 1, 2025); 0% state sales tax; property tax ~2.04% average (3rd highest in US); no estate tax; no capital gains tax; unique dual zero-tax advantage in the Northeast
🏔️
COUNTRY B
Colorado
TAX RATE
4.4%
Flat Income Tax — TABOR Refunds Partially Offset; Very Low Property Tax
4.4% flat income tax on all income; TABOR refunds ~$800/filer annually in recent years; 2.9% state sales tax (~7.5% combined average); property tax ~0.55% average (one of the lowest in the US); no estate tax; capital gains taxed as ordinary income at 4.4%
TYPICAL ANNUAL DIFFERENCE
Moving from Colorado → New Hampshire at Net annual New Hampshire advantage vs Colorado at $100K–$300K (income tax saving + sales tax saving minus property tax premium; TABOR ~$800 reduces CO's net income tax cost)
$1,380–$5,720+ net
That's $115–$477/month net at $100K–$300K income back in your pocket
Section 02

Tax Savings by Income Level

Net take-home after all income tax, social contributions, and surcharges — for a single employee with no dependents.
GROSS INCOME
⛰️ NH TAX
🏔️ CO TAX
SAVINGS
10-YEAR
$50,000
$0 income tax; ~$4,794 property (2.04% × $235K home); $0 sales tax = ~$4,794 total
~$2,200 income tax (4.4%); −~$800 TABOR = ~$1,400 net income tax; ~$1,293 property (0.55% × $235K home); ~$1,500 sales (7.5% × $20K) = ~$4,193 total
CO advantage at $50K: CO total ~$4,193 vs NH ~$4,794 = ~$601 CO advantage (NH's 2.04% property tax dominates at low income/modest home)
CO advantage ~$6,010 at this income/home value
$100,000
$0 income tax; ~$6,120 property (2.04% × $300K home); $0 sales = ~$6,120 total
~$4,400 income tax (4.4%); −~$800 TABOR = ~$3,600 net; ~$1,650 property (0.55% × $300K home); ~$2,250 sales (7.5% × $30K) = ~$7,500 total
NH saves ~$4,400 income + ~$2,250 sales = $6,650; pays ~$4,470 more property = ~$2,180 gross NH advantage; ~$1,380 net after TABOR
$13,800
$200,000
$0 income tax; ~$10,200 property (2.04% × $500K home); $0 sales = ~$10,200 total
~$8,800 income tax (4.4%); −~$800 TABOR = ~$8,000 net; ~$2,750 property (0.55% × $500K home); ~$3,000 sales (7.5% × $40K) = ~$13,750 total
NH saves ~$8,800 income + ~$3,000 sales = $11,800; pays ~$7,450 more property = ~$4,350 gross NH advantage; ~$3,550 net after TABOR
$35,500
$300,000
$0 income tax; ~$14,280 property (2.04% × $700K home); $0 sales = ~$14,280 total
~$13,200 income tax (4.4%); −~$800 TABOR = ~$12,400 net; ~$3,850 property (0.55% × $700K home); ~$3,750 sales (7.5% × $50K) = ~$20,000 total
NH saves ~$13,200 income + ~$3,750 sales = $16,950; pays ~$10,430 more property = ~$6,520 gross NH advantage; ~$5,720 net after TABOR
$57,200
$1M capital gain
$0 state capital gains tax (New Hampshire: no income or capital gains tax since I&D Tax repeal)
~$44,000 Colorado state capital gains tax (CO taxes capital gains as ordinary income at 4.4%; TABOR does not reduce capital gains tax)
NH saves ~$44,000 on a $1M capital gain event vs Colorado
Depends on frequency; NH property tax differential (~$4,470 on $300K home) is paid annually regardless
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⛰️

New Hampshire Pros & Cons

+ PROS
  • Dual zero-tax advantage — New Hampshire has both 0% income tax and 0% sales tax; this combination is unique in the contiguous US; Colorado charges 4.4% income tax and ~7.5% combined sales tax; at $200,000 income with $40,000 annual spending, NH saves approximately $11,800 in income and sales tax combined
  • No capital gains tax — New Hampshire charges $0 on investment income and capital gains (Interest & Dividends Tax repealed January 1, 2025); Colorado taxes all capital gains at 4.4%; a $1M capital gain saves approximately $44,000
  • Zero sales tax — New Hampshire's 0% sales tax is unique in the Northeast; Colorado's ~7.5% combined average applies to virtually all purchases; on $30,000/year of taxable spending, NH saves approximately $2,250/year
  • Income tax saving dominates at $100K+ — despite NH's high property tax (2.04%), the combination of income and sales tax savings exceeds the property tax premium from $100,000 income upward; advantage grows steadily with income
  • No estate tax — New Hampshire has no estate tax; Colorado also has none; equal on this dimension
− CONS
  • Highest property tax in this comparison — New Hampshire's ~2.04% average is the 3rd highest in the US and more than 3.5× Colorado's ~0.55%; on a $500,000 home, NH costs approximately $7,450/year more in property tax than Colorado — a very significant annual expense for homeowners
  • Colorado wins at lower incomes with modest homes — at $50,000 income with a $235,000 home, Colorado's combination of TABOR refund and very low property tax produces a lower total tax bill than New Hampshire; NH doesn't win until income rises or spending is high
  • Limited urban career access — Concord and Manchester are modest cities; Colorado's Denver metro offers aerospace, tech, energy, and outdoor recreation career density unavailable in New Hampshire
🏔️

Colorado Pros & Cons

+ PROS
  • Exceptionally low property tax — Colorado's ~0.55% is one of the lowest effective rates in the US; for homeowners with expensive properties, this structural advantage significantly narrows or eliminates New Hampshire's income/sales tax advantage at lower income levels
  • TABOR refunds reduce income tax burden — Colorado's constitutional TABOR mechanism has returned approximately $800/person per year in recent years, reducing the net income tax cost; at $50,000 income, TABOR brings Colorado's effective income tax to approximately $1,400 net
  • Denver outdoor lifestyle and career ecosystem — Denver is a major hub for aerospace (Lockheed Martin, Raytheon), tech, energy, and outdoor recreation industries; the Rocky Mountain lifestyle is a primary draw for relocators from flat-terrain states
  • Both states have no estate tax — equal on this dimension; Colorado also has no inheritance tax
− CONS
  • 4.4% flat income tax on all income — Colorado residents pay 4.4% from the first dollar; TABOR returns approximately $800 flat regardless of income; at $300,000 income, TABOR reduces a $13,200 tax bill by only 6%
  • Capital gains taxed as ordinary income — Colorado taxes all capital gains at 4.4% with no preferential rate; New Hampshire charges $0; a $1M capital gain costs approximately $44,000 in Colorado state tax
  • Higher combined sales tax — Colorado's ~7.5% combined rate exceeds New Hampshire's 0%; on $40,000/year of spending, approximately $3,000/year more than NH — this compounds with the income tax disadvantage
  • TABOR refund is not proportional at high incomes — the ~$800 TABOR refund is fixed regardless of income; at $300,000 income, it represents less than 6% of Colorado's income tax bill
FAQ

Frequently Asked Questions

Does New Hampshire have an income tax in 2026?

No. New Hampshire eliminated its last income tax — the Interest & Dividends Tax on investment income — effective January 1, 2025. Prior to that repeal, NH taxed interest and dividends at 3%. As of 2025, New Hampshire has 0% state income tax on wages, salaries, investment income, capital gains, and retirement distributions. Combined with its 0% sales tax, New Hampshire is the only state in the continental US with both zero income and zero sales tax.

What is Colorado's TABOR refund and how does it affect the comparison?

Colorado's Taxpayer's Bill of Rights (TABOR) is a constitutional provision requiring the state to refund revenues that exceed a spending cap. In recent years, this has returned approximately $800 per income tax filer annually. This reduces Colorado's effective income tax burden: at $100,000 income, the gross income tax is $4,400, but after TABOR the net is approximately $3,600. At lower income levels, TABOR meaningfully narrows the gap with New Hampshire. At higher incomes, $800 becomes proportionally insignificant.

How do property taxes compare between New Hampshire and Colorado?

New Hampshire's effective property tax rate (~2.04%) is more than 3.5 times higher than Colorado's (~0.55%). On a $400,000 home: New Hampshire costs approximately $8,160/year; Colorado approximately $2,200/year — a difference of approximately $5,960/year. This property tax gap is the primary reason Colorado outperforms New Hampshire at lower income levels with modest homes, and why the comparison is more nuanced than a simple 'zero income tax wins' analysis.

At what income level does New Hampshire outperform Colorado?

At approximately $75,000–$85,000 income (depending on home value), New Hampshire begins to overtake Colorado on total tax burden. Below this threshold, Colorado's very low property tax and TABOR refunds can produce a lower total bill. Above it, New Hampshire's income tax saving ($4,400 at $100K, growing linearly with income) combined with its 0% sales tax surpasses Colorado's low property tax advantage. At $200,000+, New Hampshire leads by $3,500–$5,700/year or more.

Does New Hampshire have a sales tax?

No. New Hampshire has 0% state sales tax and no local sales tax. This is extremely rare in the US — only a handful of states have no sales tax, and New Hampshire is unique in the Northeast. Colorado's combined state and local sales tax averages approximately 7.5%, with Denver metro rates around 8.8%. For a household spending $30,000/year on taxable goods, the difference is approximately $2,250/year in New Hampshire's favour.

Is New Hampshire or Colorado better for remote workers?

New Hampshire is financially superior for remote workers at $100,000+ income. The combination of 0% income tax and 0% sales tax saves approximately $6,650/year before property tax offset; the net advantage is approximately $1,380–$5,720/year at $100K–$300K income. However, New Hampshire's high property tax (~2.04%) is a significant home-ownership cost. Remote workers renting rather than owning, or those with very high income where property tax is proportionally small, benefit most from New Hampshire.
From the brief
PT20%qualifying work, 10yr
IT€300kall foreign income, 15yr
GR7%foreign income, 15yr
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