New Hampshire Income Tax on Military Pay and Retirement

New Hampshire taxes no personal income at all. It never taxed wages, and the interest and dividends tax, its only personal income tax, was repealed for taxable periods beginning after December 31, 2024, so the whole of RSA 77 is gone.

Also called: RSA 77, interest and dividends tax, repealed, 2021 chapter 91, no income tax, military retirement, SBP, no state withholding.

For: Veteran or service member, survivor.

Where it applies

Written for the jurisdictions listed here.

New HampshireState

New Hampshire has no personal income tax, and as of tax year 2025 that statement needs no qualification for the first time. New Hampshire never taxed wages, salaries or other earned income. What it did tax was interest and dividends, under RSA 77, at 5 percent and latterly at declining rates. That chapter is now gone. The published Revised Statutes Annotated shows chapter 77 with a single line: "Chapter 77 Repealed. Entire Chapter was repealed. [Repealed by 2021, 91:99, II, eff. Jan. 1, 2025.]" So for a taxable period beginning on or after January 1, 2025 there is no New Hampshire tax on interest, on dividends, on capital gains, on wages, on pensions or on any other personal income. The consequences for a veteran or service member, each of which is often listed as a separate New Hampshire benefit and is really just this one fact: Military retired pay is not taxed, because no retirement income is taxed. Active duty pay is not taxed, whether earned in New Hampshire or elsewhere, and there is no New Hampshire state withholding to set up. Survivor Benefit Plan annuity payments are not taxed. VA disability compensation, VA pension and Dependency and Indemnity Compensation are not taxed, which would also be true in every state because they are outside federal gross income. Combat zone pay is not taxed, and there is no state filing to extend, because there is no personal return to file. A nonresident service member stationed in New Hampshire owes no New Hampshire income tax on military pay, and a military spouse working here owes none on wages. The Servicemembers Civil Relief Act protections that matter so much in other states have nothing to operate on. There is no state earned income credit, no property tax circuit breaker run through an income tax return, and no retirement income exclusion, because there is no return. That last point matters when comparing states: in Missouri or Minnesota a disabled veteran can receive a refundable property tax credit paid out through the income tax system, and New Hampshire has no mechanism to do that. Its property tax relief is delivered entirely at the town level as a credit against the bill, which is why RSA 72 carries so much of the weight in this file. What New Hampshire does tax, and a veteran will notice, is property. The state has among the highest effective property tax rates in the country and no general sales tax. The veteran credits in RSA 72 sit against bills that in many towns run well into five figures, which is the context for reading a $50 standard credit or even a $750 optional one. Business taxes still exist. The business profits tax and business enterprise tax under RSA 77-A and RSA 77-E apply to a veteran-owned business on the same terms as any other, and there is no veteran preference or credit in either chapter.

Thresholds

Thresholds for New Hampshire Income Tax on Military Pay and Retirement
Gate	Rule
No status test, because there is no personal income tax to be exempt from	RSA 77, the interest and dividends tax, was repealed in its entirety by 2021 chapter 91, section 99, II, effective January 1, 2025. New Hampshire has never taxed earned income.
Business taxes still apply with no veteran provision	The business profits tax under RSA 77-A and the business enterprise tax under RSA 77-E contain no veteran credit or preference.

Sources

N.H. Rev. Stat. Ann. ch. 77, repealed in its entirety effective January 1, 2025Official

Legislation

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Laws of New Hampshire 2021, chapter 91, section 99, II Repealed the interest and dividends tax, leaving New Hampshire with no personal income tax

Catalog reconciledEnactedProgram repealed

Signed 2021-06-25Takes effect 2025-01-01

Introduced Done, 2021-02-25, step 1 of 6
In committee Done, 2021-02-25, step 2 of 6
Passed one chamber Done, 2021-04-07, step 3 of 6
Passed both chambers Done, 2021-06-24, step 4 of 6
Signed by the governor Done, 2021-06-25, step 5 of 6
In effect Done, 2025-01-01, step 6 of 6

No change to benefits Repeals a general tax on interest and dividends that never reached military retired pay or other earned income; no veteran benefit changes.

Repealed RSA 77 in its entirety effective January 1, 2025. The interest and dividends tax was the only New Hampshire tax on personal income; the state has never taxed wages or other earned income. For a taxable period beginning on or after January 1, 2025 there is no New Hampshire tax on interest, dividends, capital gains, wages, pensions, military retired pay, Survivor Benefit Plan annuities or any other personal income, and no personal return to file. Tracked because a great deal of published material still describes New Hampshire as taxing interest and dividends at 5 percent or at a phased-down rate, and because the absence of a personal income tax is the structural reason New Hampshire delivers all of its veteran tax relief as local property tax credits under RSA 72 rather than as refundable income tax credits the way several other states in this catalog do.

Sponsor

Touches N.H. Rev. Stat. Ann. ch. 77

Official record

Updated

Last updated 2026-09-29.

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Disclaimer

VetTOC is not affiliated with the U.S. Department of Veterans Affairs or the Department of Defense. Information is for reference only and is not an eligibility determination. Verify with VA, the relevant state or territory, or an accredited VSO.