Massachusetts vs New Hampshire Taxes: Comparison
Massachusetts vs New Hampshire Taxes 2026: Complete Comparison
Massachusetts and New Hampshire share the longest border dispute in their tax philosophies. New Hampshire has no income tax. Massachusetts has a 5% flat tax. Many Boston-area professionals "Live Free or Die" in NH while working in MA.
Quick Comparison
| Tax Category | Massachusetts | New Hampshire | Winner |
|---|---|---|---|
| Income Tax | 5% flat | 0% | ⭐ NH |
| Sales Tax | 6.25% | 0% | ⭐ NH |
| Property Tax | 1.17% | 1.89% | ⭐ MA |
| Total Tax Burden | 11.5% | 9.6% | ⭐ NH |
Bottom Line: NH wins on income/sales tax. MA wins on property tax. Overall, NH better for high earners, MA better for retirees with expensive homes.
Total Federal Tax
$16,712
Effective Tax Rate
16.71%
Your Tax Bracket
22%
Marginal tax rate on next dollar earned
Tax Breakdown by Bracket
2026 Tax Brackets (Single)
Income Tax
Massachusetts: 5% Flat
Everyone pays 5% on all income:
- $75K = $3,750 tax
- $100K = $5,000 tax
- $200K = $10,000 tax
Plus: 4% surtax on income over $1M (total 9% on amount over $1M)
New Hampshire: Zero
NO STATE INCOME TAX
However: NH does tax dividends & interest at 3% (being phased out—0% by 2027)
Commuter Consideration
Live in NH, work in MA?
- You pay MA income tax on MA-source income (5%)
- But save on spending in NH (no sales tax)
- And no tax on non-MA income
Live in MA, work in NH?
- You pay MA tax on all income (NH has none)
- No advantage
Winner: Live in NH, work in MA is the sweet spot!
Take Standard Deduction
$47,500
Standard deduction of $47,500 exceeds itemized deductions by $22,500
Standard Deduction
$47,500
Itemized Deductions
$25,000
Your total deductible expenses
🎉 NEW 2026 Senior Deduction (OBBBA)
$12,000 additional deduction for taxpayers 65+
Deduction Breakdown
2026 Standard Deduction Amounts
- • Single: $16,100
- • Married Filing Jointly: $32,200
- • Head of Household: $24,150
- • Single: $2,050 per condition
- • Married: $1,650 per person, per condition
- • $6,000 per taxpayer age 65+
- • Phases out at $75K (single) / $150K (married)
- • 6% reduction per dollar over threshold
💡 Optimization Tips
• You're benefiting from the NEW 2026 senior deduction - a valuable OBBBA provision
Property Tax: MA Wins
Massachusetts
Average: 1.17%
- $500K home = ~$5,850/year
New Hampshire
Average: 1.89% (high!)
- $500K home = ~$9,450/year
NH Property Tax Difference: +$3,600/year
This offsets some income tax savings.
The Break-Even Analysis
Live in NH, work in MA, earn $100K:
- Pay MA income tax: $5,000
- Save on sales tax: ~$800/year
- Pay higher property tax ($500K home): +$3,600
- Net savings: ~$1,000-2,000/year
Higher income = bigger advantage to NH
Lower income + expensive home = MA may win
Over-Withholding
$15,600
You're giving the IRS an interest-free loan. Expect a refund.
Estimated Tax Owed
$0
Total Withholding
$15,600
Recommended Action
Tax Calculation Breakdown
Payment Schedule
💡 Withholding Tips
• You're over-withholding by $15,600/year. Consider reducing to increase take-home pay
• Submit new W-4 form to your employer to adjust withholding by $600/paycheck
Real-World Scenarios
Scenario 1: Boston Commuter (MA → NH)
Income: $120,000 (works in Boston)
$450K home
Living in MA:
- MA income tax: $6,000
- Property tax: $5,265
- Sales tax: $2,500
- Total: $13,765
Living in NH:
- MA income tax: $6,000 (still owed)
- Property tax: $8,505
- Sales tax: $0
- Total: $14,505
MA actually wins by $740! (due to property tax)
Scenario 2: Remote Worker (Tech)
Income: $150,000 (remote, no MA income)
$500K home
Massachusetts:
- MA income tax: $7,500
- Property tax: $5,850
- Sales tax: $2,813
- Total: $16,163
New Hampshire:
- Income tax: $0
- Property tax: $9,450
- Sales tax: $0
- Total: $9,450
NH saves: $6,713/year 🎉
Scenario 3: Retiree
Income: $70K (retirement)
$650K paid-off home
Massachusetts:
- Income tax: $3,500
- Property tax: $7,605
- Total: $11,105
New Hampshire:
- Income tax: $0
- Property tax: $12,285
- Total: $12,285
MA wins by $1,180 (property tax matters more)
Total Child Tax Credit
$4,400
Refundable Portion
$0
Credit Breakdown
Refundable vs. Non-Refundable Credit
2026 Child Tax Credit Parameters
Credit Amounts
- • Per qualifying child (under 17): $2,200
- • Per other dependent (17+): $500
- • Refundable portion limit: $1,700/child
Phase-Out Thresholds
- • Single: $200,000
- • Married Filing Jointly: $400,000
- • Reduction: $50 per $1,000 over threshold
💡 Optimization Tips
• Your income is well below phase-out threshold - you're receiving full credit
Which State Wins?
New Hampshire Better For:
✅ High earners (income tax savings)
✅ Remote workers (don't pay MA tax)
✅ Self-employed/business owners
✅ Big spenders (no sales tax)
✅ Those who value personal freedom
✅ Outdoor enthusiasts (mountains, lakes)
Massachusetts Better For:
✅ Retirees with expensive, paid-off homes
✅ Lower earners (<$75K)
✅ Those requiring Boston-area amenities
✅ Public transit users (Boston MBTA)
✅ Those wanting urban lifestyle
Special Considerations
"Massachusetts Millionaire Tax": MA now has 4% surtax on income over $1M (9% total rate on that amount).
For $2M earners: Extra $40K MA tax. NH saves $100K+ total.
NH Property Tax Relief:
- Low & moderate income homeowners get some relief
- Elderly exemptions available
- But overall property tax remains high
No Sales Tax in NH: Big advantage for major purchases:
- Cars (save 6.25% vs MA)
- Furniture
- Electronics
- Home improvements
Many MA residents shop in NH to avoid sales tax!
Your QBI Deduction (Section 199A)
$20,000
20% of your qualified business income
Estimated Tax Savings
$4,800
Based on your marginal tax bracket
QBI Deduction Breakdown
2026 QBI Deduction Parameters
Income Thresholds (2026)
- • Single/HoH: $201,775 threshold
- • Married Joint: $403,500 threshold
- • Phase-in range: $75,000 (single) / $150,000 (married)
Deduction Rules
- • Standard deduction: 20% of QBI
- • Limited to 20% of taxable income
- • W-2 wage limit may apply above threshold
- • SSTB restrictions for high earners
💡 Optimization Strategies
• Your income is below the threshold - no wage or SSTB limitations apply. Focus on maximizing QBI.
FAQ
Q: If I live in NH and work in MA, who taxes me?
MA taxes your MA-source income. NH doesn't tax anything. You pay MA 5% on work income.
Q: Can I live in MA and shop in NH?
Yes! Many do. No sales tax in NH. However, MA technically requires you to pay "use tax" (rarely enforced).
Q: What's better for families?
MA generally has better public schools statewide. NH has excellent schools in wealthier towns, but more variation.
Q: Which has better quality of life?
Subjective! MA has Boston (culture, jobs, transit). NH has mountains, lakes, more space, personal freedom. Both have 4 seasons.
Q: Do I need to file NH tax return?
Not if you only have W-2 income. NH only taxes dividends/interest (being phased out).
Conclusion
The answer depends on your situation:
Remote/self-employed earning $100K+: NH saves $5,000-15,000/year
Boston commuter: Often a wash, slight edge to NH at higher incomes
Retiree with expensive home: MA may win
For high earners not commuting to MA, NH saves significantly.
Calculate Your Scenario:
Total Federal Tax
$16,712
Effective Tax Rate
16.71%
Your Tax Bracket
22%
Marginal tax rate on next dollar earned
Tax Breakdown by Bracket
2026 Tax Brackets (Single)
Take Standard Deduction
$47,500
Standard deduction of $47,500 exceeds itemized deductions by $22,500
Standard Deduction
$47,500
Itemized Deductions
$25,000
Your total deductible expenses
🎉 NEW 2026 Senior Deduction (OBBBA)
$12,000 additional deduction for taxpayers 65+
Deduction Breakdown
2026 Standard Deduction Amounts
- • Single: $16,100
- • Married Filing Jointly: $32,200
- • Head of Household: $24,150
- • Single: $2,050 per condition
- • Married: $1,650 per person, per condition
- • $6,000 per taxpayer age 65+
- • Phases out at $75K (single) / $150K (married)
- • 6% reduction per dollar over threshold
💡 Optimization Tips
• You're benefiting from the NEW 2026 senior deduction - a valuable OBBBA provision
Your Earned Income Tax Credit
$4,250
Credit being phased out
EITC Credit Breakdown
Income Analysis
2026 EITC Parameters
Maximum Credits (2026)
- • No children: $664
- • 1 child: $4,427
- • 2 children: $7,316
- • 3+ children: $8,231
Key Requirements
- • Must have earned income
- • Investment income limit: $11,950
- • Must file tax return (even if not required)
- • Valid Social Security number required
💡 Optimization Tips
• Your credit is being reduced by $177.378 due to phaseout
• Consider tax-deferred retirement contributions to reduce AGI and increase EITC
AMT Owed
$0
Total Tax Liability
$65,000
AMT Calculation Breakdown
2026 AMT Parameters
- • Single: $90,100
- • Married Joint: $140,200
- • Single: $500,000
- • Married Joint: $1,000,000
- • Phaseout rate: 50% (increased from 25%)
- • 26% on first $244,500
- • 28% on excess over $244,500
Last Updated: Jan 2, 2026
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