Hawaii vs New Hampshire Taxes
Compare the total tax burden between Hawaii (1.4% – 11%) and New Hampshire (no income tax). Enter your income to see which state saves you more.
Tax at Different Income Levels
| Income | Hawaii Total Tax | New Hampshire Total Tax | Annual Savings |
|---|---|---|---|
| $75,000 | $17,828 | $13,687 | Save $4,142 |
| $100,000 | $27,303 | $21,099 | Save $6,204 |
| $150,000 | $46,871 | $36,542 | Save $10,329 |
| $200,000 | $65,689 | $50,885 | Save $14,804 |
Based on single filer, standard deduction, 2025 tax year. Includes federal income tax, state income tax, and FICA.
Why the difference
You'd save $6,204/year ($517/month) in New Hampshire vs Hawaii.
Tax structure
Hawaii uses progressive brackets up to 11.0%, while New Hampshire has no state income tax.
Effective rate at your income
At $100,000, New Hampshire's effective state rate is 0.0% vs 6.2% in Hawaii — a 6.2 percentage point gap.
Tip: In a progressive-bracket state, pre-tax 401(k) and HSA contributions reduce your state tax bill along with federal tax. If you are near a bracket boundary, an additional contribution can drop you into a lower state bracket.
Tip: With the interest and dividends tax now repealed, New Hampshire joins the fully no-income-tax group. However, property taxes are notably high — budget $6,000-$10,000+ annually on a median-value home.
Understanding Each State
Hawaii
This state uses a progressive income tax system with multiple brackets, similar to the federal system. Only the income within each bracket is taxed at that rate, so your effective state rate is lower than the top bracket. Tax planning strategies include maximizing pre-tax retirement contributions to reduce state-taxable income.
Tip: In a progressive-bracket state, pre-tax 401(k) and HSA contributions reduce your state tax bill along with federal tax. If you are near a bracket boundary, an additional contribution can drop you into a lower state bracket.
New Hampshire
New Hampshire has no state tax on wages or salary, but historically taxed interest and dividend income at 5%. This tax was repealed effective January 2025, making NH a fully no-income-tax state. Property taxes in NH are among the highest nationally, averaging ~1.86% of home value.
Tip: With the interest and dividends tax now repealed, New Hampshire joins the fully no-income-tax group. However, property taxes are notably high — budget $6,000-$10,000+ annually on a median-value home.
Key Comparison Points
Income tax structure: Hawaii has a progressive income tax (1.4% – 11%), while New Hampshire has no state income tax.
Beyond income tax: State tax comparisons should also consider property tax rates, sales tax, and cost of living. A state with no income tax may have higher property or sales taxes that offset the savings.
SALT deduction cap: Under OBBBA (2025+), the federal SALT cap is $40,000, phasing out above $500,000 MAGI toward a $10,000 floor. This limits the federal tax benefit of living in a high-tax state, so the gross state tax difference remains close to the net difference for most earners — especially high earners inside the phaseout.
Frequently asked questions
Is it cheaper to live in Hawaii or New Hampshire?
Based on income tax alone, New Hampshire has a lower tax burden. At $100K income, you'd save $6,204 annually in New Hampshire compared to Hawaii. However, total cost of living also depends on property taxes, sales taxes, and housing costs.
How much would I save moving from Hawaii to New Hampshire?
A single filer earning $100,000 would save approximately $6,204 per year in total taxes by living in New Hampshire instead of Hawaii. At $150,000 income, the savings change to $10,329 per year.
What is the income tax rate in Hawaii?
Hawaii has a progressive income tax with rates of 1.4% – 11%.
What is the income tax rate in New Hampshire?
New Hampshire has no state income tax.
Does New Hampshire have income tax?
No, New Hampshire does not levy a state income tax. Residents pay only federal income tax and FICA. However, New Hampshire may have higher property taxes or sales taxes to compensate.