What New Hampshire residents actually pay
New Hampshire has no state income tax on wages. That removes a layer — but federal AMT, federal capital gains, and the 3.8% Net Investment Income Tax still apply, and a prior state may still have a claim.
No wage-income tax; interest & dividends tax phasing out.
Federal AMT on the bargain element
Exercising ISOs and holding the shares creates AMT "preference income" equal to the spread between fair market value at exercise and your strike price. That's the bargain element. It doesn't show up on a W-2, and many people discover it only when their CPA calculates AMT in April.
Frequently asked
- Does New Hampshire tax RSU income the same as wages?
- New Hampshire has no state income tax on wages, so RSU ordinary income is federal-only. Note that Washington residents still owe the 7% state long-term capital gains tax on sales above the threshold, and other states may claw back some income if your grant pre-dated your move.
- What happens if I exercise ISOs while living in New Hampshire?
- New Hampshire does not run a separate state AMT, so only federal AMT applies. You still need to model the bargain element carefully if you plan a cashless exercise-and-sell.
- I moved to New Hampshire from another state. Who taxes my vesting RSUs?
- Most high-tax states (CA, NY, MA) source RSU ordinary income to workdays between grant and vest. If your grant pre-dates your New Hampshire move, expect the old state to tax the portion of each tranche attributable to workdays earned there. New Hampshire taxes the remainder.
- Can I reduce New Hampshire taxes by timing my RSU sales?
- New Hampshire has no state income tax, so sale timing affects only your federal bill. NIIT and federal capital-gains brackets are still in play.
Related
- RSU taxes — New Hampshire
- Capital gains tax — New Hampshire
- QSBS — New Hampshire
- Moving to or from New Hampshire with unvested equity: trailing nexus rules — New Hampshire
- RSU vesting schedules — New Hampshire
- ESPP taxation — New Hampshire
- NSO exercises and state tax — New Hampshire
- 401(k) and retirement accounts — New Hampshire
- Leaving New Hampshire: how to cleanly break residency before a liquidity event — New Hampshire
- New Hampshire equity-comp overview