Governor Kelly Ann Ayotte of New Hampshire said on April 15 that she supports a constitutional amendment to permanently prohibit a state income tax. The statement was made as the House Ways and Means Committee held a public hearing on CACR 12, a resolution to enshrine the prohibition in the state constitution for voter consideration. The proposal had previously passed the Senate along party lines, and the discussion coincided with federal tax filing day, according to Ayotte’s social media post.
The debate over whether to make New Hampshire’s ban on an income tax permanent is significant because it could shape the state’s fiscal policy for years to come. Lawmakers are considering placing this prohibition directly into the constitution, which would require approval by voters.
“New Hampshire is a beacon of freedom and opportunity because we’ve held the line against an income tax. A constitutional amendment to make it permanent ensures our state won’t go the way of Massachusetts. No income tax — not now, not ever,” Ayotte said, according to her social media post.
New Hampshire does not have a broad-based personal income tax or a general sales tax, making it one of only a few states with this structure according to state economic comparisons. As a result, New Hampshire relies more heavily on property taxes and other revenue sources to fund local government and education services. Property tax rates vary widely across towns and cities, with some communities reporting significantly higher burdens than others. This framework has long been cited as contributing to New Hampshire’s overall tax competitiveness within the Northeast region, according to an analysis by NHFPI.
In contrast, Massachusetts imposes a five percent flat income tax on most earnings in addition to a sales tax according to state tax comparisons. Many residents and businesses consider these differences when deciding where to locate or live, and this policy gap has often been cited as influencing decisions in favor of New Hampshire over Massachusetts according to state economic development materials.
Ayotte serves as the 83rd Governor of New Hampshire after being elected in 2024 and taking office in January 2025. She previously served as Attorney General and United States Senator from New Hampshire and is a lifelong resident born in Nashua, according to her official biography.
