New Hampshire Estate Tax: Everything You Need to Know

New Hampshire has no estate tax. The federal estate tax may apply to residents of the state, though, if their estates are worth enough. This guide is for Granite Staters who are looking for the information they need to work through estate tax issues as they plan their estates and make sure everything is easy for their families after their deaths. One step you could take in planning your estate is working with a financial advisor to help.

New Hampshire Estate Tax

New Hampshire does not levy an estate tax. A total of 38 states have no estate tax.

What Is the Estate Tax?

Governments levy estate tax on the estates of people who have recently died, before the money and assets are dispersed to a person’s heirs. The estate tax is sometimes called the “death tax.” The tax only applies to estates with money and assets exceeding a certain threshold, which is legally determined by the entity levying the tax.

The estate tax is not the same as the inheritance tax. The inheritance tax applies to assets that are already passed on to a person’s heirs, who are responsible for paying the tax on their inheritance.

New Hampshire Inheritance and Gift Tax

New Hampshire also has no inheritance tax. There is a chance, though, that you will owe inheritance tax in another state if someone living there leaves you an inheritance. Kentucky’s inheritance tax, for instance, applies to all in-state property. This is true even if the inheritor of that property lives in another state that does not have an inheritance tax. If someone out-of-state leaves you an inheritance, check local laws. This could save you the hassle of dealing with a missed tax bill.

New Hampshire also has no gift tax. The federal gift tax exemption is $18,000 for each gift recipient in 2023, up from $17,000 in 2023. If you give one person more than $18,000 in 2024, you’ll have to file the gift with the government. The excess counts against your $13.61 million lifetime gift tax exemption, and it lowers your federal estate tax exemption.

Federal Estate Tax

New Hampshire does not charge an estate tax, but the federal government does. The federal estate tax may apply to you if your estate is valuable enough. The federal exemption is $13.61 million for 2024. The federal estate tax exemption is portable, meaning married couples can use both of their exemptions on their estate when the second spouse dies. This makes it possible for a married couple to protect up to $27.22 million when both spouses die. Any estate worth more than the exemption is taxed according a series of ascending rates, topping out at 40%.

This is how it works: Let’s consider an estate worth $17.61 million, where the person who has died was not married. Subtract the $13.61 million exemption and you are left with a taxable estate of $4 million. This estate is in the top tax bracket, and there is a $345,800 base payment on the first $1 million. You’ll owe 40% tax on the remaining $3 million, which comes to $1.20 million. Add in the base payment and the total tax bill on this estate is $1,545,800.

Federal Estate Tax Rates

Taxable Estate*	Base Taxes Paid	Marginal Rate	Rate Threshold**
$1 – $10,000	$0	18%	$1
$10,000 – $20,000	$1,800	20%	$10,000
$20,000 – $40,000	$3,800	22%	$20,000
$40,000 – $60,000	$8,200	24%	$40,000
$60,000 – $80,000	$13,000	26%	$60,000
$80,000 – $100,000	$18,200	28%	$80,000
$100,000 – $150,000	$23,800	30%	$100,000
$150,000 – $250,000	$38,800	32%	$150,000
$250,000 – $500,000	$70,800	34%	$250,000
$500,000 – $750,000	$155,800	37%	$500,000
$750,000 – $1 million	$248,300	39%	$750,000
Over $1 million	$345,800	40%	$1 million

*The taxable estate is the total above the 2024 federal exemption of $13.61 million.
**The rate threshold is the point at which the marginal estate tax rate kicks in.

Overall New Hampshire Tax Picture

New Hampshire is tax-friendly for retirees. The state does not tax Social Security income. It also does not tax withdrawals from retirement accounts like 401(k) plans or income from public or private pensions. In fact, New Hampshire has no state income tax whatsoever. That means the state won’t charge tax on any money you make from a post-retirement job either. It does have an interest and dividend tax of 4%, though.

New Hampshire does have very high property taxes, though. The average effective rate is 2.09%. New Hampshire also has no sales tax, though it has a sin tax for items like alcohol and tobacco.

Estate Planning Tips

Planning an estate can be complex, so working with a financial advisor may be helpful. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
There are some serious risks to DIY estate planning. Find an advisor or a lawyer to help unless you are very confident in your financial skills and attention to detail.