Military Retirement in New Hampshire
Complete 2026 Tax Guide for Veterans
NO STATE INCOME TAX
Live Free or Die - One of only 9 no-income-tax states!
Quick Facts: New Hampshire for Military Retirees
Twenty years in, the hard question was never the tax rate
It's what you have to earn on the outside so your family never feels the drop. New Hampshire taking $0 of your pension is one line of that math. Your federal bracket and your VA rating decide the rest. Put your numbers in and you get one figure back: the civilian salary you need in New Hampshire. Once you know it, you can go after work you actually want instead of the first offer that covers the bills. About a minute, free, no account, nothing saved.
See the salary I need →New Hampshire Tax Overview
New Hampshire is one of only 9 states with NO state income tax. As of January 1, 2025, New Hampshire fully repealed its Interest & Dividends Tax, making it a true zero-income-tax state. Your military retirement, civilian wages, Social Security, TSP distributions, and all other income are completely state tax-free.
2025 Update: New Hampshire eliminated its 5% tax on interest and dividend income effective January 1, 2025. Previously, while wages and pensions weren't taxed, investment income was. Now ALL income is tax-free at the state level.
| Income Type | Tax Treatment | Notes |
|---|---|---|
| Military Retirement Pay | Tax-Free | No state income tax |
| VA Disability Compensation | Tax-Free | Also federally tax-free |
| Social Security | Tax-Free | No state income tax |
| TSP / 401(k) Distributions | Tax-Free | No state income tax |
| Civilian Employment | Tax-Free | No state income tax |
| Interest & Dividends | Tax-Free (as of 2025) | Previously taxed at 5% |
| Sales Tax | NONE | No state sales tax |
Military Presence in New Hampshire
While New Hampshire doesn't have major active-duty installations within its borders, it has National Guard presence and is close to significant military facilities in neighboring states.
Pease Air National Guard Base
Portsmouth
- • 157th Air Refueling Wing
- • KC-46A Pegasus tankers
- • Former Pease AFB (closed 1991)
- • Guard/Reserve opportunities
- • Pease Development Authority business park
Portsmouth Naval Shipyard
Kittery, ME (NH border)
- • Located on NH/Maine border
- • Submarine maintenance & overhaul
- • 6,000+ civilian employees
- • Major employer for NH residents
- • Excellent civilian career opportunities
NH National Guard
Facilities statewide
- • Headquarters in Concord
- • Army & Air National Guard
- • Armories in multiple cities
- • Reserve component opportunities
Nearby Boston-Area Bases
Within 1-hour commute
- • Hanscom AFB (Bedford, MA)
- • Coast Guard Base Boston
- • US Army Soldier Systems Center (Natick)
- • Defense contractor opportunities
Those numbers aren't your family's
Your rank, your years, your rating, your house payment. Same math run on your numbers: what actually lands in the account each month after federal tax, and the civilian salary that closes whatever gap is left. If your spouse is working, it counts that too. You walk away with a target instead of a worry.
Run my numbers →Cost of Living in New Hampshire
New Hampshire has a higher cost of living than average, primarily due to housing costs. However, the lack of income tax and sales tax provides significant savings that can offset these costs, especially for retirees with substantial pension income.
| Category | New Hampshire | National Average |
|---|---|---|
| Overall Cost of Living | 110 (10% above) | 100 |
| Median Home Price | $475,000 | $420,000 |
| Property Tax Rate | 2.05% (highest in US) | 1.07% |
| State Income Tax | 0% | ~5% average |
| State Sales Tax | 0% | ~6% average |
Tax Trade-Off: New Hampshire relies heavily on property taxes instead of income/sales taxes. For military retirees with high pension income, the income tax savings often outweigh higher property taxes. Calculate your specific situation with our calculator.
Best New Hampshire Cities for Military Retirees
Portsmouth / Seacoast
Near Portsmouth Naval Shipyard, Pease ANG
- • Historic coastal city
- • Strong military/defense community
- • Excellent restaurants, culture
- • Close to beaches
- • Higher housing costs
Manchester / Nashua
Southern NH, Boston commuter area
- • Largest cities in NH
- • Strong job market (tech, healthcare)
- • VA Medical Center in Manchester
- • Easy access to Boston
- • More affordable than seacoast
Concord
State Capital, National Guard HQ
- • State capital - government jobs
- • NH National Guard headquarters
- • More affordable housing
- • Central location
- • Small-city feel
Lakes Region
Laconia, Meredith, Wolfeboro
- • Lake Winnipesaukee recreation
- • Popular retirement destination
- • Four-season outdoor activities
- • Quieter, scenic living
- • Further from military facilities
VA Healthcare in New Hampshire
VA Medical Center
- Manchester VA Medical Center - Full-service hospital, NH's only VA Medical Center
Community-Based Outpatient Clinics
- • Conway
- • Littleton
- • Portsmouth
- • Somersworth
- • Tilton
Note: Veterans in southern NH also have access to VA Boston Healthcare System facilities in Massachusetts, and the White River Junction VA in Vermont serves the western part of the state.
Pros & Cons of Retiring in New Hampshire
✅ Pros
- ✓ NO state income tax on ANY income
- ✓ NO state sales tax
- ✓ All retirement income tax-free
- ✓ Beautiful New England scenery
- ✓ Four-season recreation (skiing, lakes)
- ✓ Close to Boston metro opportunities
- ✓ Portsmouth Naval Shipyard jobs
- ✓ Low crime rates, excellent schools
- ✓ "Live Free or Die" libertarian culture
❌ Cons
- ✗ Highest property taxes in US (2.05%)
- ✗ High housing costs
- ✗ No major active-duty installations
- ✗ Cold, snowy winters
- ✗ Limited military community
- ✗ Only one VA Medical Center
- ✗ Higher overall cost of living
Frequently Asked Questions
Does New Hampshire have any state income tax?
No. As of January 1, 2025, New Hampshire has NO state income tax on any income type. Previously, there was a 5% tax on interest and dividends, but that has been fully repealed.
Is New Hampshire good for military retirees despite high property taxes?
It depends on your situation. If you have a high military pension ($50,000+), the income tax savings typically outweigh property tax costs. Use our calculator to compare your specific scenario with other states.
What veteran property tax exemptions does New Hampshire offer?
New Hampshire genuinely does vary by town, but the statute sets the range so you can tell whether your town is generous or minimal. The All Veterans' Tax Credit under RSA 72:28-b has a standard amount of $50, and a town may vote to adopt anything from $51 up to $750. The credit for service-connected total and permanent disability under RSA 72:35 has a standard amount of $700 and towns may vote to raise it substantially higher, so check your own town rather than assuming the minimum. Separately, RSA 72:36-a provides a full exemption from property tax for veterans who are double amputees or paraplegic from service-connected injury, or who have VA specially adapted housing, and for their surviving spouses. File Form PA-29 with your town by April 15, and you must have lived in New Hampshire for at least one year before April 1 of the claim year.
Can I work at Portsmouth Naval Shipyard and live in New Hampshire?
Yes! Many Portsmouth Naval Shipyard employees live in New Hampshire. You'd pay no state income tax on your wages, making NH an attractive option for Shipyard workers despite Maine being the shipyard's official location.
Calculate Your New Hampshire Tax Savings
See how much you'll save with New Hampshire's zero income tax
Try the Free CalculatorComparing states? The $4.99 worksheet ranks your exact pension in all 50, New Hampshire included, with 20-year state tax totals for each. Get the worksheet or see a sample first.
Weighing other states too? Compare Maine, Vermont and Massachusetts, or see the full 50-state ranking of military retirement taxes.