New Hampshire is one of the most tax-friendly states in the country for investors.
The state does not impose a personal income tax, which means capital gains are not taxed at the state level.
As of 2026, this applies to both short-term and long-term capital gains earned by individuals and businesses.
New Hampshire Capital Gains Tax Overview
In New Hampshire, there is no state income tax on personal income. As a result, capital gains from the sale of stocks, bonds, real estate, cryptocurrency, or other investments are not subject to New Hampshire state tax.
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No State Capital Gains Tax
New Hampshire does not tax capital gains of any kind at the state level. This applies regardless of how long the asset was held and regardless of income level.
Example: If you sell stock and realize a $100,000 capital gain, New Hampshire does not tax any portion of that gain.
Short-Term and Long-Term Gains
Because there is no personal income tax, New Hampshire does not distinguish between short-term and long-term capital gains.
Example: Selling stock after six months and selling stock after five years results in the same outcome—no New Hampshire capital gains tax.
Repeal of the Interest and Dividends Tax
Historically, New Hampshire taxed interest and dividend income. That tax was fully repealed effective January 1, 2025. As of 2026, residents are not taxed on interest, dividends, or capital gains at the state level.
Example: Dividend income and capital gains earned in 2026 are no longer subject to any New Hampshire income-based tax 🎉
Federal Capital Gains Taxes Still Apply
While New Hampshire does not tax capital gains, federal capital gains taxes still apply. Long-term federal capital gains are taxed at 0%, 15%, or 20%, and higher-income taxpayers may also owe the 3.8% Net Investment Income Tax.
Example: A taxpayer may owe federal capital gains tax even though New Hampshire imposes no state tax on the sale.
Other New Hampshire Taxes to Know About
Although New Hampshire does not have an income or capital gains tax, it does impose other taxes that may affect certain transactions.
- Real Estate Transfer Tax of $0.75 per $100 of the sale price (typically paid by both buyer and seller)
- Property taxes, which are relatively high compared to those in many states
Example: Selling a home for $400,000 may trigger a New Hampshire real estate transfer tax, even though the capital gain itself is not taxed.
Important Planning Tip
New Hampshire’s lack of a capital gains tax makes it attractive for retirees, investors, and business owners. However, residency rules still matter—capital gains are generally taxed based on where you are legally domiciled at the time of sale 💡
Electronic Filing Recommendation
💻Even though New Hampshire does not tax capital gains, electronic filing is still recommended for federal returns and for accurately reporting real estate transactions.
E-filing helps taxpayers:
- Correctly report capital gains on federal tax returns
- Avoid mistakes when no state income tax return is required
- Maintain clean digital records for audits or future reference
- Speed up federal refund processing
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