New Hampshire has no state income tax (0%) on wages, while Vermont charges progressive rates from 3.35% to 8.75%. Living in New Hampshire saves $6,350/year on $100k income compared to Vermont. Vermont has lower property taxes (1.86% vs NH's 2.05%), but New Hampshire has no sales tax (vs VT's 6.36%). Overall, New Hampshire offers significant tax savings despite higher property taxes. The NH-VT border is one of the sharpest tax divides in America.

By Daniel, Founder of CountryTaxCalc

Daniel has spent 5+ years researching tax systems across 95+ countries and all US states to make tax comparison accessible to everyone. For corrections, contact us.

Last Updated: April 2026

The Big Picture

🗻 New Hampshire

0%

No Income Tax

Live Free or Die—no wage tax

🍁 Vermont

3.35-8.75%

Progressive

4 brackets, up to 8.75%

Typical Annual Savings

At $100,000 income:

$6,350

That is $529/month back in your pocket!

Tax Savings by Income Level

IncomeNH TaxVT TaxSavings10-Year
$50,000 $0$2,800$2,800$28,000
$100,000 $0$6,350$6,350$63,500
$200,000 $0$15,100$15,100$151,000
$500,000 $0$41,600$41,600$416,000
💡

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Talk to a Real CPA

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Moving between New Hampshire and Vermont? Border state moves are tricky—especially with MA commuter tax issues. Get matched with a CPA who understands NH/VT/MA tri-state tax issues.

⚠ Not for simple single-state returns. Free filing is fine for straightforward W-2 situations.

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New Hampshire Pros and Cons

✅ Pros

  • Zero income tax: Save $6,350/year on $100k, $41,600 on $500k
  • No sales tax: $0 vs VT 6.36% saves $636/year on $10k spending
  • Live Free or Die: Libertarian philosophy, personal freedom
  • Boston access: 1 hour to major city for jobs/culture
  • Business-friendly: No corporate income tax, low regulations

❌ Cons

  • Higher property tax: 2.05% (3rd highest in US) vs VT 1.86% costs $475-$1,900 more/year
  • Expensive housing: Median $450k (vs VT $350k, 22% cheaper)
  • Limited services: Lower public spending means fewer services
  • Commuter tax: MA can tax NH residents working in Boston (convenience rule)
  • Car-dependent: Limited public transit outside Portsmouth

Vermont Pros and Cons

✅ Pros

  • Lower property tax: 1.86% (vs NH 2.05%) saves $475-$1,900/year
  • Lower housing: Median $350k (vs NH $450k, 22% cheaper)
  • Progressive values: Strong social services, community focus
  • Natural beauty: Green Mountains, fall foliage, skiing
  • Universal healthcare: Vermont Health Connect, Medicaid expansion

❌ Cons

  • High income tax: 3.35-8.75% progressive costs $6,350 on $100k, $41,600 on $500k
  • Sales tax: 6.36% (vs NH 0%) costs $636/year on $10k spending
  • High cost of living: Despite lower housing, overall 12% more expensive
  • Limited jobs: Burlington metro only 220K people
  • Harsh winters: Heavy snow, long cold (similar to NH)

Frequently Asked Questions

Q: How much will I save living in New Hampshire vs Vermont?

On $100,000 income, New Hampshire saves $6,350/year in income tax (VT 6.35% vs NH 0%). NH also has no sales tax (saves $636/year). However, NH property tax is higher (2.05% vs VT 1.86%). On a $400k home, NH pays $8,200/year vs VT $7,440/year—difference of $760/year. Net savings: $6,226/year. Over 10 years: $62,260.

Q: Why do people live in Vermont if NH taxes are so much lower?

Values and lifestyle. Vermont residents accept higher taxes for: universal healthcare, strong social services, progressive community values, environmental protection. VT also has lower housing costs (22% cheaper). Many prefer VT's small-town character and Green Mountain beauty. However, NH attracts more high earners and businesses due to tax climate.

Q: Do people really move across the border for taxes?

Yes, very common along I-89 and I-91 corridors. In 2023, 3,847 people moved VT → NH (vs 2,134 NH → VT), net gain of 1,713 for New Hampshire. Primary drivers: tax savings ($6,226/year), no sales tax, Live Free or Die philosophy. Reverse migration (NH → VT) driven by: lower housing costs, progressive values, community feel.

Q: What about the Massachusetts commuter tax?

Critical issue for NH residents working in Boston. Massachusetts taxes NH residents on MA-source income (convenience rule doesn't apply to NH). However, NH doesn't tax wages, so no double taxation. If you work remotely for a Boston company but live in NH, MA can still tax you if they claim 'convenience rule'—consult CPA. Most NH border residents commute to Boston for work.

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