If you’re from Northern New England, you are very aware that New Hampshire has no sales tax. In fact, I bet if you live in that part of the US, you’ve actually made a trek or ten to shop in NH just to avoid paying sales tax.
(When I was growing up in Maine, we’d always stop at the Portsmouth state liquor store before returning to Maine, so my folks could get their booze and other items tax free. Funny the things that stick in your mind when you’re a young kid.)
On top of having no sales tax, New Hampshire also has no income tax either. It goes without saying then that there are no taxes on Social Security, IRA distributions, pensions etc.
However, New Hampshire does saddle its residents with high property tax. The third highest in the nation as a matter of fact, at 1.99%. That property tax is a sticking point for many residents, indeed.
There is not much of an exemption to speak of either. So if you’re on a fixed income and own a home, New Hampshire may not seem as tax friendly as it is thought to be. Property values in New Hampshire aren’t cheap either.
This is why I prefer states with a low property and sales tax even if it means they have an income tax. You can work around the income tax with proper planning. Property tax? Not so much.
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