New Hampshire Climbs to #3 in National Tax Competitiveness

Oct 31, 2025 by AFP

Concord, NH- Americans for Prosperity — New Hampshire (AFP-NH) applauds New Hampshire’s climb to #3 overall in the Tax Foundation’s 2026 State Tax Competitiveness Index, released earlier this week. This is up from #6 last year, making this NH’s best ranking ever thanks to the elimination of NH’s tax on interest and dividend income.

The report notes, “New Hampshire joined the ranks of states without an individual income tax with the elimination of its Interest and Dividends tax on January 1, 2025. As a result, New Hampshire improved three places overall and twelve places on the individual income tax component.”

Americans for Prosperity-New Hampshire led the fight on the phase out and elimination of the I&D tax and helped to make NH truly income tax free.

AFP-NH Deputy State Director Sarah Scott released the following statement:

“New Hampshire didn’t get to #3 by accident, we earned it. Ending the income tax on interest and dividends was a win for every Granite Stater who believes government should take less and let people keep more of what they earn, particularly for our seniors who made up a majority of I&D taxpayers.

“This is a great accomplishment but the state needs to do more work to continue to make our taxes on employers more competitive. The House recommended a great start to that in its efforts to reduce the Business Enterprise tax, a payroll tax on small businesses.”