In May, the Tax Foundation, a nonpartisan organization, published its annual report on state and local tax collections per capita. New Hampshire ranked 29th in the nation with $5,949 in taxes per person, making it the best-performing state in the Northeast region.
The Granite State’s per capita tax collections were over $700 less than Pennsylvania, the next closest state in the Northeast, and nearly $7,000 less than New York, which had the highest tax collections. In fact, New Hampshire is one of only two states in this nine-state region not to be among the top 20 for tax collections and one of three below the national average of $7,109.
The report provided a comparison of how New Hampshire stacks up against other states in the region:
– NH (29th): $5,949
– PA (22nd): $6,644 (+12%)
– RI (17th): $7,000 (+18%)
– ME (16th): $7,216 (+21%)
– VT (8th): $8,158 (+37%)
– MA (6th): $9,341 (+57%)
– NJ: (5th): $9,366 (+57%)
– CT (3rd): $9,718 (+63%)
– NY (1st): $12,685 (+112%)
Historically leading the region with a low state and local tax burden according to previous Tax Foundation analyses, New Hampshire improved its ranking from 25th highest in 2023 and 19th highest in 2019.
Among seven states without any individual income tax nationwide—Nevada and Wyoming had higher tax collections while Tennessee, Florida, South Dakota, and Texas had lower collections compared to New Hampshire.
Despite these figures showing an advantageous position regarding overall taxation competitiveness where it ranks sixth best nationally; New Hampshire still faces challenges with business taxes as it ranks 16th worst across the country.
