New Hampshire
#1
retiree-friendly rank
- Social Security
- No state income tax
- Retirement income
- No state income tax
- Death tax
- None
Prop 1.5% · Sales 0%
2026New Hampshire vs Vermont Retirement Taxes
New Hampshire ranks more retiree-friendly than Vermont on Social Security, retirement-income, and estate/inheritance treatment. Compare Social Security, pensions and IRA withdrawals, estate/inheritance taxes, and supporting property and sales rates.
By Sammy S. · Founder · AuthorUpdated for 2026
More retiree-friendly on this model
New Hampshire ranks ahead
New Hampshire ranks #1 vs #48 for Vermont. Score gap: 6.00 (lower score = more friendly).
Side-by-side retirement tax scoreboard
Vermont
#48
retiree-friendly rank
- Social Security
- SS partially taxed
- Retirement income
- Retirement income taxed
- Death tax
- Estate tax
Prop 1.51% · Sales 6.43%
Retirement tax metric comparison
Rankings emphasize income and death taxes. Property and sales rates matter for cash flow but do not drive the retiree-friendliness score.
| Metric | New Hampshire | Vermont |
|---|---|---|
| Retiree-friendly rank | #1 | #48 |
| Social Security | No state income tax | SS partially taxed |
| Retirement income | No state income tax | Retirement income taxed |
| Estate / inheritance | None | Estate tax |
| Estate exemption | — | $5M |
| Estate top rate | — | 16% |
| Effective property tax | 1.5% | 1.51% |
| Combined sales tax | 0% | 6.43% |
State rules explained
Why New Hampshire and Vermont differ for retirees
The gap is rarely one rule. Social Security thresholds, pension exclusions, and estate taxes can each flip which state looks better for a given household.
New Hampshire rules
No broad wage income tax (interest/dividends tax repealed); Social Security and retirement distributions are not taxed as wages.
New Hampshire has no broad state income tax, so Social Security is not taxed at the state level. Federal tax rules still apply.
New Hampshire does not levy a broad state income tax on pensions or retirement-account withdrawals.
- Property
- 1.5%
- Sales
- 0%
Vermont rules
Still taxes some Social Security above AGI thresholds; other retirement income taxable; estate tax applies.
Full SS exemption below AGI $55,000 single / $70,000 joint; partial relief phases out above.
Other retirement income generally taxed; SS partially taxed above thresholds.
Estate tax: exemption about $5M, top rate about 16%.
- Property
- 1.51%
- Sales
- 6.43%
Income mix matters
A household living mostly on Social Security may prefer different rules than one drawing large IRA RMDs. Compare New Hampshire and Vermont against your actual income mix.
Death taxes are separate
Federal estate tax can still apply above about $15M. State estate or inheritance tax is an extra layer in some states.
Property & sales still count
New Hampshire property 1.5% vs Vermont 1.51%; sales 0% vs 6.43%.
Compare a different pair
Compare any two states
Social Security, pensions/IRA, estate taxes, and supporting property/sales rates.
Related tools
Estimate federal retirement figures
Use Social Security and RMD tools, then apply each state's rules from this comparison.
New Hampshire vs Vermont retirement tax FAQs
New Hampshire ranks more retiree-friendly on this site's Social Security, retirement-income, and estate/inheritance score. Also compare property tax (1.5% vs 1.51%) and combined sales tax (0% vs 6.43%).
New Hampshire: no state income tax. Vermont: ss partially taxed. Federal Social Security tax rules apply in both states.
New Hampshire: no state income tax. Vermont: retirement income taxed.
New Hampshire: no estate tax. Vermont: estate tax (exemption about $5M).
Not always. Property taxes, sales taxes, and estate taxes can offset income-tax savings. Compare total household exposure, not income tax alone.
Federal income tax, Medicare IRMAA surcharges, and the federal estate tax framework do not depend on the state of residence in the same way state income tax does. State rules sit on top of federal rules.
Educational comparison only. Confirm current state return instructions and estate planning rules before relocating.