E-file New Hampshire Taxes & Get a Speedy Tax Refund
New Hampshire focuses on taxing assets, services and investment income rather than wages or merchandise. For example, the Granite State requires people to pay taxes when they use utilities, order prepared meals or stay in hotel rooms.
Interest and Dividends
For tax year 2024, New Hampshire imposed a 3% tax on interest and dividend income over $2,400 for single filers and $4,800 for joint filers. However, effective January 1, 2025, this tax has been eliminated. The state previously provided $1,200 exemptions to seniors and blind or otherwise disabled residents. For 2024 returns due April 15, 2025, taxpayers with qualifying interest and dividend income must still file Form DP-10 by April 15.
Major Tax Change Alert
New Hampshire has eliminated its Interest and Dividends tax effective January 1, 2025. This means:
- No state income tax on any interest or dividend income earned in 2025 and beyond.
- The 2024 tax year (filed in 2025) will be the final year requiring Interest and Dividends tax filing.
New Hampshire now joins states with no state income tax on wages, salaries, or investment income.
Citizens filing for 2024 have the option to pay this tax online with credit cards or electronic checks. When someone uses a credit card, the state government charges a 2.19% fee. This adds almost $11 to the total cost of a $500 payment. The minimum fee is 50 cents.
For 2024 income, if a resident with interest or dividend income owes more than $500 per year, New Hampshire expects the person to make quarterly estimated payments in January, April, June and September. Taxpayers were required to enclose Form DP-10-ES with each check and send it to the Department of Revenue Administration.
The state allows taxpayers to request tax extensions if they need more time to file this return. The extension application is known as Form DP-59-A. Residents may also update previous dividend and interest returns. They can file amendments by completing Form DP-87-ID. Filers must fill out a separate form for each year.
What This Means for Taxpayers
Starting with income earned in 2025:
- No state tax filing requirements for New Hampshire residents.
- No quarterly estimated payments needed.
- No forms to file related to interest and dividends.
- New Hampshire effectively becomes a zero-income-tax state.
For 2024 income (filing in 2025):
- Must still file Form DP-10 if interest/dividends exceeded thresholds.
- Final year of estimated payment requirements.
- All existing exemptions and rules still apply.
Other New Hampshire Taxes on Services
All residents and visitors pay an 8.5% tax when they eat at restaurants, stay in motels, rent vehicles, or go camping. The state also adds fees to most utility bills. It charges a 7% tax on communication services, such as phone, internet access, and electricity usage as well.
Local Property Taxes
Municipal governments estimate real estate values so that they can tax property owners every year or every few years. Property tax rates vary significantly by municipality. While most property tax revenue funds local services, some cash goes to the state government's education budget.
New Hampshire has among the highest property tax rates in the nation, with an average effective rate of 1.61%. This is partly because the state relies heavily on property taxes due to the absence of sales tax and (now) income tax.
People in this state generally pay the most state taxes if they own real estate property and, for 2024, had significant dividend-paying investments. Residents can avoid most state taxation by owning modest real estate, and starting in 2025, they won't owe any state income taxes regardless of their investment income.
Estimated Quarterly Payment Forms
For 2024 income only, residents could use Form DP-10-ES to pay estimated quarterly payments on interest and dividends. This requirement no longer applies starting with the 2025 income.
No Sales Tax Advantage
New Hampshire is one of only five states without a general sales tax, making it highly attractive for consumers. Combined with the elimination of the Interest and Dividends tax, New Hampshire now offers:
- No state income tax
- No sales tax
- No estate or inheritance tax
This makes it one of the most tax-friendly states in the nation, though property taxes remain high.
Frequently Asked Questions
Do I still need to file anything for 2025?
No, starting with 2025 income, New Hampshire residents have no state income tax filing requirements.
What about my 2024 interest and dividends?
You must still file Form DP-10 by April 15, 2025, if your 2024 interest and dividend income exceeded $2,400 (single) or $4,800 (joint).
Will I get a refund if I overpaid estimated taxes for 2024?
Yes, any overpayments will be refunded when you file your final 2024 Interest and Dividends return.
Does this affect federal taxes?
No, you still must pay federal income taxes on all income types according to federal law.
Note: States & U.S. territories may make changes to their tax laws with little notice. We do our best to keep this information up-to-date, but it is provided on an "AS IS" basis. For more see our terms.