New Hampshire has no state income tax, meaning you pay $0 in state capital gains tax. You still owe federal capital gains tax.
NH State Rate
0%
No tax on capital gains (I&D tax repealed 2025)
Federal Rate
15%
Most common long-term bracket
Combined Effective
18.8%
On $150K taxable gain (example)
After the $250K/$500K exclusion, here's what a typical seller might owe.
If New Hampshire is where your primary residence is located and you've lived there at least 2 of the last 5 years, you can exclude up to $250K (single) or $500K (married filing jointly) of your capital gain from both federal and state taxes.
Investment and rental properties in New Hampshire don't qualify for the exclusion. You'll owe 0% state tax plus federal tax on the full gain, plus 25% depreciation recapture on any depreciation claimed.
In New Hampshire, homes sold in March sell for 23% more than those sold in October (-15%). Timing your sale right can offset a significant portion of your tax bill.
Capital gains tax rates on home sales in New Hampshire and nearby states.
| State | Rate | Tax on $150K Gain | Notes |
|---|---|---|---|
New Hampshire0%You | 0% | $0 | No tax on capital gains (I&D tax repealed 2025) |
| 7.15% | $10,725 | Top marginal rate | |
| 8.75% | $13,125 | Top marginal rate | |
| 9% | $13,500 | 5% + 4% surtax on income > $1M |
New Hampshire repealed its Interest & Dividends tax effective January 2025, making it a true zero-income-tax state. Capital gains are not taxed at the state level.
NH's proximity to Boston makes it popular with Massachusetts commuters seeking tax relief. The southern tier (Nashua, Salem, Derry) has strong demand.
While there's no income tax, New Hampshire has relatively high property taxes that offset the income tax advantage for property owners.
The zero capital gains rate makes NH particularly attractive for investment property sales compared to neighboring Massachusetts (9%) and Maine (7.15%).
Offering buyer concessions?
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