Massachusetts vs New Hampshire: Tax & Cost of Living Comparison (2026)

Income Tax

Winner: New Hampshire

Massachusetts shifted to a 5% flat rate via constitutional amendment in 2020; the November 2022 Fair Share Amendment added a 4% surtax on all income above $1M (including capital gains), effective 2023. MA uniquely taxes short-term capital gains at 12%. New Hampshire has never had an income tax on wages and as of January 2025 fully phased out its 5% Interest and Dividends tax (1% in 2025 was the final step before zero). For wage earners and commuters, NH wins clean; for high-earner investment-heavy households, the 4% MA surtax above $1M is the major lever.

Property Tax

Winner: Massachusetts at urban; NH only at very low home prices

Massachusetts's effective property tax averages 1.04%, but Boston runs an unusually low 0.61% and Cambridge 0.55% — driven by commercial property taxation absorbing much of the urban tax base. Suburban MA towns run 1.0-1.4% (Newton 1.1%, Wellesley 1.1%, Concord 1.2%). New Hampshire effective rates run 1.93% on average — driven by NH's heavy property-tax reliance for school funding (no sales tax revenue, no income tax revenue). Towns like Manchester, Nashua, and Concord NH carry rates of 2.0-2.5%; Upper Valley towns (Hanover, Lebanon near Dartmouth) 1.8-2.2%.

Sales Tax

Winner: New Hampshire decisively

New Hampshire has no sales tax of any kind — a major draw for cross-border shoppers from Massachusetts, Maine, and Vermont. Major appliances, vehicles, furniture, electronics, and jewelry purchased in NH save the 6.25% MA sales tax on every dollar. Massachusetts imposes a 'use tax' on out-of-state purchases brought back to MA, but personal-shopping enforcement is minimal; vehicle registration triggers it automatically. On $50K of taxable spending: MA shoppers pay $3,125/yr more than NH shoppers buying the same goods locally.

Estate Tax

Winner: New Hampshire decisively for any estate above $2M

Massachusetts has one of the country's lowest estate-tax exemptions at $2M and applies brackets up to 16%. The 2023 reform removed the cliff structure (estates above $2M previously paid tax on the full estate); now tax applies only on the portion above $2M. Still aggressive: a $5M MA estate pays about $391,000; a $10M estate pays about $1.04M. New Hampshire has no estate or inheritance tax — repealed in 2003. For households with significant home equity in eastern MA plus retirement assets, the MA estate tax often becomes a major consideration that NH eliminates entirely.

MA $9,800/yr (5% flat after $4,400 exemption); NH $0. Direct delta $9,800/yr. The Fair Share surtax doesn't kick in until $1M income, so under that threshold MA's 5% is the only state-tax line.

MA $95,000/yr ($75K base at 5% + $20K at 4% surtax on $500K above $1M); NH $0. The 2023 surtax created a much larger high-earner migration incentive than existed pre-2022.

NH Manchester $11,580/yr (1.93%); MA Newton $6,600/yr (1.1%); MA Boston condo $3,660/yr (0.61%). NH's high property tax can wipe out $4,000-$8,000/yr of income-tax savings depending on home value.

MA 6.25% state (no local); NH 0%. On $50K of taxable spending: NH shoppers save $3,125/yr versus comparable MA local shopping. Vehicle purchases, appliances, furniture, electronics — cross-border shopping is real.

MA $2M exemption with brackets to 16%. A $5M MA estate pays ~$391K; $10M MA estate ~$1.04M. NH $0 estate tax. Major consideration for households with significant home equity in eastern MA plus retirement assets.

SCOTUS effectively confirmed (by declining MA's defense) that MA cannot tax NH residents working entirely remotely from NH for MA employers. Fully-remote NH residents escape MA income tax entirely — major lever for tech, knowledge workers, and high-earner professionals post-2021.