Bottom line: Yes - moving from Massachusetts to New Hampshire lowers your state income tax. On a $75,000 salary you would keep about $3,750 more per year.
| Salary (single) | Massachusetts tax | New Hampshire tax | Difference |
|---|---|---|---|
| $50,000 | $2,500 | $0 | Save $2,500 |
| $75,000 | $3,750 | $0 | Save $3,750 |
| $100,000 | $5,000 | $0 | Save $5,000 |
| $150,000 | $7,500 | $0 | Save $7,500 |
| $250,000 | $12,500 | $0 | Save $12,500 |
Massachusetts: Massachusetts uses a flat 5% rate on ordinary income. A 4% surtax applies to income over $1 million (the "millionaire tax").
New Hampshire: New Hampshire phased out its Interest and Dividends Tax entirely as of January 1, 2025. It now has no state income tax.
Your state income tax is set by where you are a resident, not where your employer is. To stop paying Massachusetts tax you must genuinely establish residency in New Hampshire - register to vote, change your driver's license and car registration, move your primary home, and spend more than half the year there. High-tax states like Massachusetts audit departing high earners, so keep records of your move date.
In the year you move you typically file a part-year resident return in both states: Massachusetts taxes income earned while you lived there, New Hampshire taxes the rest. Remote workers should note that a handful of states tax income sourced to the state even for non-residents - check before assuming a clean break.
New Hampshire has NO state income tax - one of nine states with no wage income tax.
On a $75,000 single-filer salary, the state income tax difference is about $3,750/year (in your favor). Use the calculator for your exact income.
Once you establish residency in New Hampshire and break Massachusetts residency, new income is taxed by New Hampshire. Massachusetts can still tax income earned while you were a resident - file a part-year return for the move year.
Massachusetts tax calculator · New Hampshire tax calculator · Paycheck calculator
Estimates use 2026 state brackets and the standard deduction for a single filer; they exclude local taxes, credits and federal tax. Verify with a tax professional before relocating.