A proposed constitutional amendment to ban an income tax in New Hampshire advanced out of committee and is headed for a full House vote on May 14.
The proposed amendment, known as CACR 12, would add language to the state constitution prohibiting the adoption of an income tax. The measure previously passed the Senate and advanced following public testimony and committee review, according to legislative records.
New Hampshire House Republicans reported that every Democrat on the House Ways and Means Committee voted against the NH Advantage Amendment, according to a post on X.
Supporters of the amendment say that New Hampshire maintains one of the lowest overall tax burdens in the nation. According to WalletHub analysis, the state ranks first in the country for taxpayer return on investment for the 11th straight year. Gov. Chris Sununu’s office said this ranking is largely due to the absence of a state income tax or broad sales tax.
According to research by the Tax Foundation, nine states, including New Hampshire, currently impose no individual income tax. These jurisdictions attract residents and businesses seeking lower tax environments according to economic data. New Hampshire also ranks third overall in the Tax Foundation State Tax Competitiveness Index with top scores in individual income taxes and sales taxes due to its tax structure.
The New Hampshire House Republican Caucus holds the majority in the House of Representatives, which is described as the third largest state legislative body in the English-speaking world with 400 members, according to information from their official website.
