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HEAD-TO-HEAD TAX COMPARISON · 2026

COUNTRY A New Hampshire VS COUNTRY B Vermont

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

OVERVIEW
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%).…
Section 01

The Big Picture

Top-line rates and effective take-home for a typical earner — including income tax, social contributions, and applicable surcharges.
🗻
COUNTRY A
New Hampshire
TAX RATE
0%
No Income Tax
Live Free or Die—no wage tax
🍁
COUNTRY B
Vermont
TAX RATE
3.35-8.75%
Progressive
4 brackets, up to 8.75%
TYPICAL ANNUAL DIFFERENCE
Moving from VermontNew Hampshire at $100,000
$6,350
That's $529/month 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
🍁 VT TAX
SAVINGS
10-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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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 & 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 & 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)
FAQ

Frequently Asked Questions

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.

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.

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.

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.