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 Section 1202
Qualified Small Business Stock (QSBS) lets you exclude up to $10M or 10× your basis (whichever is greater) in federal capital gains on eligible C-corp stock held at least five years. The stock must have been acquired at original issuance from a company with under $50M in gross assets at the time.
New Hampshire conformity
New Hampshire has no state income tax, so federal QSBS exclusion is the only layer you interact with here. That's a meaningful reason founders relocate before a sale — though trailing-state rules can still apply.
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
- ISO exercises and AMT — New Hampshire
- Capital gains tax — 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