Live in New Hampshire, work in Vermont
State income tax on wages · single filer · tax year 2026
Vermont takes
$1,850
on wages earned there
New Hampshire takes
$0
after the credit it gives
Both together
$1,850
state tax for the year
Cost of the line
$1,850
a year, above working at home
What crossing the line costs
costs youVermont charges more than New Hampshire would, and New Hampshire only credits you up to its own bill — so the difference stays with you. Solid is what you actually pay; the faded part of the New Hampshire bar is the credit it hands back. State income tax only — federal and payroll tax apply on top, and a city wage tax may too.
Which state taxes you, and what it costs
- Here is the thing people get wrong about New Hampshire and Vermont. Moving somewhere cheaper does not help if the job stays put. The state where you work takes its share first, and your home state only refunds up to what it charges itself. That leaves $1,850 a year that exists purely because the job is across the line. All in, $1,850.
- Of all the states feeding workers into Vermont, New Hampshire sends the most: 11,314 jobs. That makes this the largest crossing of its kind into the state, out of 3 of them.
- Vermont taxes wages earned inside its borders by non-residents, and New Hampshire taxes its residents on the same wages wherever they are earned. The resident credit resolves the overlap but does not erase it: New Hampshire credits tax paid to Vermont only up to what it would itself have charged on that income, so the commuter settles at the higher of the two liabilities rather than the sum. At the reference salary that is $1,850 against $0 for the same earner working at home — $1,850 attributable to the state line itself. ⚠️ The corollary is the part most readers have backwards: moving to a cheaper home state while keeping the job in Vermont changes the split between the two treasuries and not the total.
- Measured against every other state sending commuters into Vermont, this is the largest single flow: 11,314 jobs held by New Hampshire residents, ahead of all 3 corridors of this size into that state. Census LODES counts jobs rather than people, so a worker holding two positions in Vermont appears twice.
Where the money goes
A $75,000 salary
- Federal income tax$7,670
- Social Security and Medicare$5,738
- Yours$61,593
| Federal income tax10.23% | $7,670 |
|---|---|
| Social Security and Medicare7.65% | $5,738 |
| Yours82.12% | $61,593 |
Which rung you are on
A $75,000 salary
| This rung starts at | $66,500 |
|---|---|
| Next rung starts at | $121,800 |
| Room before it | $46,800 |
Federal only, measured on gross pay — so the first rung is what the standard deduction covers.
The arithmetic, step by step
| Vermont takes, on wages earned there | $1,850 |
|---|---|
| New Hampshire charges its residents | $0 |
| Less the credit New Hampshire gives | $0 |
| Total state tax | $1,850 |
| If you also worked in New Hampshire | $0 |
| Difference | $1,850 |
On a reference salary of $60,000 a year, single filer. Both states run progressive schedules, so the figures do not simply scale — use the tool above for your own salary.
What this page does not cover
- City wage taxes are not in these numbers. A few places charge them, and where they do the money is real. If your job in Vermont is inside a city that taxes workers, add that on top. Where it is not, the state figures above are the whole of it for New Hampshire residents.
- These numbers assume the job in Vermont is your only income, and that you actually go there to work. Both matter. If you earn money in more than one state, the credit New Hampshire gives is worked out as a share rather than the simple cap used here. And if you work from home some days, some states have rules that treat those days as worked at the office anyway.
- Every dollar figure here uses a salary of sixty thousand a year. It is a stated benchmark, not a guess at what people on this route earn. Scale them to your own pay. Which state ends up dearer, New Hampshire or Vermont, generally holds at other salaries — though the gap between them can widen or narrow as you cross tax brackets.
- These figures cover the STATE layer only. City and municipal wage taxes sit on top of them and are not included: a commuter into Philadelphia pays its wage tax on top of anything here, and Ohio's municipalities run their own credit system, which this site models in its own families. New York City, by contrast, taxes only its residents, so a commuter into it adds nothing at the city level. Whether Vermont or New Hampshire carries a local layer is a separate question from the state arithmetic above.
- The arithmetic assumes all wages are earned in Vermont and that there is no other income. That matters for the credit: where income comes from several states, New Hampshire limits the credit to the share of its own tax attributable to the Vermont portion, computed as a ratio rather than the straightforward cap used above. It also assumes days are worked in Vermont rather than remotely — several states tax a non-resident's remote days as though they were worked at the employer's location, which reverses the usual expectation and is handled on this site's reciprocity pages.
- Dollar amounts are computed at a stated reference salary of sixty thousand rather than a corridor wage average, which no published source provides per state pair. Because both states' liabilities and the credit between them are functions of the same income, the direction of the New Hampshire to Vermont comparison holds at other salaries even though the amounts do not — with one qualification worth stating, that a progressive schedule can change the SIZE of the gap at higher incomes, and in Vermont's case a bracket crossed on one side and not the other is exactly where that happens.
Questions people ask
Do I pay state tax twice, to New Hampshire and Vermont?
Not twice over. Both states have a claim — Vermont because you earn the money there, New Hampshire because you live there — but New Hampshire gives you credit for what Vermont took. The credit stops at what New Hampshire would have charged on its own, so what you actually pay is the bigger of the two bills. Here that comes to $1,850 for the year.
Would moving out of New Hampshire lower my state tax if I keep working in Vermont?
Probably not, and this is the part people get wrong. Vermont taxes the wages because that is where you earn them, whoever you are and wherever you sleep. Your home state only ever credits you up to its own bill. So moving somewhere cheaper changes which government keeps the money, not how much leaves your pay. What would change it is the job moving, not you.
Do I have to file tax returns in both New Hampshire and Vermont?
Expect two. Living in New Hampshire means filing there on everything you earn. Working in Vermont usually means filing there as well, on the part you earned inside it. The second one is often how the credit gets claimed, so skipping it can cost you money you are owed.
What if I work from home in New Hampshire some days instead of going to Vermont?
Normally, days worked at home in New Hampshire belong to New Hampshire, and only the days you spend in Vermont are taxed there. That is the ordinary rule. The exception is real though: some states count your remote days as worked at the employer's location anyway. That flips the answer completely, so check Vermont's rule rather than assuming.
How is liability allocated between residence and work state on the same wages?
Both jurisdictions assert a claim on the same wages — Vermont on a source basis, New Hampshire on residence. The residence state grants a credit for tax paid to the source state, limited to the residence state's own liability on that income. Net combined liability therefore equals the greater of the two liabilities rather than their sum, $1,850 at the reference salary, and the split between the two treasuries is the only thing the credit changes.
Does changing residence reduce combined liability while the work state is unchanged?
No, while the source state is unchanged. Vermont's claim arises from where the services are performed and is unaffected by residence. Because the residence credit is capped at the residence state's own liability, combined liability equals the greater of the two — so substituting a lower-tax residence reduces the residence-state component toward zero while leaving the total at Vermont's level. The binding variable is the work location, not the home one.
What filing obligations arise in each state on this corridor?
Generally two. New Hampshire requires a resident return reporting all income; Vermont requires a non-resident return reporting the income sourced to it, which is also the mechanism by which the resident credit is substantiated. ⚠️ A filing obligation is distinct from a liability: a reciprocity exemption or a zero net position removes tax without necessarily removing the return, and the non-resident return is frequently what establishes the credit claimed on the resident one.
How do remote working days affect sourcing between these two states?
Ordinarily wages are sourced to where the services are performed, so days worked remotely from New Hampshire fall outside Vermont's jurisdiction and the source-state apportionment shrinks accordingly. ⛔ The exception is the "convenience of the employer" rule, which several states apply: a non-resident's remote days are sourced to the employer's location unless the remote work is required by the employer rather than chosen by the employee. The figures on this page model in-person attendance in Vermont throughout.