New Hampshire Capital Gains Tax Rate (2026)
New Hampshire capital gains tax overview
New Hampshire eliminated its interest and dividends tax as of January 1, 2025. Capital gains are not taxed.
Federal + New Hampshire combined rates
Your total capital gains tax bill includes both layers — federal and state. Here is what a New Hampshire investor pays in 2026 for long-term gains:
| Federal Long-Term Rate | New Hampshire State Rate | Combined Rate | Plus NIIT (if applicable) |
|---|---|---|---|
| 0% | 0% | 0% | 3.8% |
| 15% | 0% | 15% | 18.8% |
| 20% | 0% | 20% | 23.8% |
The NIIT (Net Investment Income Tax) adds an extra 3.8% for taxpayers whose MAGI exceeds $200,000 (single) or $250,000 (married filing jointly). It is a federal tax only — New Hampshire does not have an equivalent.
How New Hampshire compares to other states
New Hampshire is one of 8 states with no individual income tax. This group includes: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Wyoming. Residents of these states pay only federal capital gains tax — a significant advantage for investors with large unrealized gains who have flexibility on where they live.
Tax-reduction strategies for New Hampshire residents
With no state income tax, New Hampshire residents already benefit from one of the most favorable environments for capital gains in the country. The primary levers are federal:
- Hold over 1 year for long-term federal rates (0/15/20%).
- Tax-loss harvesting: Offset your gains with losses realized in the same year. A $20,000 loss offsets $20,000 of gains dollar-for-dollar, saving $4,000 in federal tax at top rates.
- 0% bracket planning: In lower-income years (retirement, sabbatical, between jobs), realize gains at the federal 0% rate. With no state tax, this means zero total capital gains tax.
- Donate appreciated stock directly to charity or a donor-advised fund to avoid capital gains tax entirely while generating a charitable deduction for the full fair market value.
Detailed New Hampshire capital gains tax rules
Tax history and legal basis
New Hampshire eliminated its Interest & Dividends Tax effective January 1, 2025. The state now has NO tax on investment income of any kind, including capital gains.
Exemptions and special treatment
All capital gains, dividends, and interest income are now fully exempt from state taxation. New Hampshire has no general income tax on wages or salaries either (and never has).
Filing requirements
No state income tax return is required for capital gains or investment income. New Hampshire residents only owe federal capital gains tax.
Recent changes and legislative updates
New Hampshire phased out its 5% Interest & Dividends Tax over 2023-2024, reaching 0% on January 1, 2025. This makes NH fully tax-free for all forms of investment income. Combined with no sales tax, NH is now one of the most tax-friendly states for investors, though property taxes remain among the highest in the nation.
Worked example: $50,000 capital gain in New Hampshire
Here's exactly what a New Hampshire resident would owe on a $50,000 long-term capital gain with $80,000 in other income (single filer, 2026):
| Component | Amount | Notes |
|---|---|---|
| Capital gain | $50,000 | Long-term (held over 1 year) |
| Federal tax (15%) | −$7,500 | Based on $80,000 ordinary income + gain |
| New Hampshire state tax (0%) | −$0 | No state income tax |
| Total tax owed | −$7,500 | Federal + state combined |
| You keep | $42,500 | 85.0% of your gain |
Because New Hampshire has no state income tax, you keep $42,500 after federal tax — significantly more than residents of high-tax states like California (where state tax alone would cost ~$4,650 on this gain).
Frequently asked questions — New Hampshire
Does New Hampshire tax short-term and long-term gains differently?
No — New Hampshire has no income tax, so neither type of gain is taxed at the state level. The difference between short-term and long-term only matters for federal purposes.
Do I need to file a New Hampshire tax return if I only have capital gains?
No. New Hampshire has no income tax, so there is no state return to file for investment income.
What if I moved to New Hampshire mid-year?
Moving to New Hampshire eliminates future state capital gains taxes, but gains realized while you were a resident of your prior state are taxable by that state. Most states use a prorated approach for part-year residents.