Massachusetts vs New Hampshire: which really costs more?
New Hampshire charges no general sales tax and no income tax. It sits right next to one of the most taxed states in New England. That is why the border shopping is real.
Both layers pull in the same direction here. Income tax and sales tax each differ by enough to matter, so the gap builds up twice rather than once. The purchase they disagree about most is home purchase. After that it is wedding and then coffee habit. Everything below is sorted the same way, biggest gap first, so the things that barely differ sink to the bottom where they belong.
New Hampshire levies neither a general sales tax nor a state income tax, and it borders one of the highest-tax states in New England — which is exactly why the border shopping is real.
Both the income tax differential and the combined sales tax differential are material and same-signed, so the two layers compound rather than offset. Largest absolute divergence by category: home purchase. Then wedding, then coffee habit.
Massachusetts
- Income tax rate
- 5%
- On a $75,000 salary
- 4.57%
- Rank of 51
- 10
- Combined sales tax
- 6.25%
- Rank of 51
- 35
New Hampshire
- Income tax rate
- none
- On a $75,000 salary
- 0%
- Rank of 51
- 43
- Combined sales tax
- 0%
- Rank of 51
- 48
Beyond income and sales tax
A home costs more to keep in New Hampshire, where property tax takes 1.66% of its value each year. In Massachusetts it is 1.07%. Massachusetts also taxes large estates when someone dies, above $2,000,000.00. New Hampshire does not. Gas carries a similar state tax in both: 24¢ a gallon in Massachusetts, 22.2¢ in New Hampshire.
Effective property tax rate: about 1.66% of market value in New Hampshire against about 1.07% in Massachusetts — a holding cost the income and sales tax figures above do not capture. Massachusetts levies a state estate tax with an exemption of $2,000,000; New Hampshire levies none. State gasoline excise: 24¢ per gallon in Massachusetts, 22.2¢ in New Hampshire.
The income tax figure is what one person earning $75,000.00 pays to the state, as a share of that pay. The sales tax figure is the combined state and local rate. Both come from the same checked data the calculator uses.
Income tax is the effective state rate at $75,000 for a single filer, not a marginal rate. Sales tax is the combined state and local rate at each state's representative county where one is modeled, and a statewide average for the forty-five jurisdictions that carry no named county. Both figures come from the same verified datasets the calculator uses.
Massachusetts against New Hampshire
A $75,000 salary
| Measure | Massachusetts | New Hampshire |
|---|---|---|
| Take-home pay | $58,163 | $61,593 |
| Worth after local prices | $53,736 | $58,467 |
| Share of pay taxed | 22.45% | 17.88% |
| State sales tax | 6.25% | 0% |
| Groceries exempt here | Yes | Yes |
| Clothing exempt at $100 | Yes | Yes |
| Property tax rate | 1.07% | 1.66% |
| Price level | 108.2 | 105.3 |
| Housing prices | 130.1 | 114.6 |
| Fuel tax | 24¢ | 22.2¢ |
| Tobacco tax | $3.51 | $1.78 |
City income tax excluded. Sales-tax row: state-only. Exemptions: Massachusetts, Statewide average; New Hampshire, No general sales tax. Clothing: one $100 item; higher prices can change tax.
Where each state is strong
A $75,000 salary
Further out is better on every axis. Axes use fixed national ranges, not the two states alone.
Where each state takes it
A $75,000 salary
- Income
- Sales
- Property
| Tax | Massachusetts | New Hampshire |
|---|---|---|
| Income, all levels | $16,838 | $13,408 |
| Sales, on that spending | $1,091 | $0 |
| Property, on that home | $2,132 | $3,313 |
Assumes 30% of take-home spent on taxable goods and a $200,000 home. Three bases, so never summed.
What gets taxed, in each
A $75,000 salary
Massachusetts
Statewide average
New Hampshire
No general sales tax
- Sales tax
- Fuel
- Tobacco
| Category | Massachusetts | New Hampshire |
|---|---|---|
| Groceries | Exempt | Exempt |
| Clothing at $100 | Exempt | Exempt |
| Fuel | 24¢ | 22.2¢ |
| Tobacco | $3.51 | $1.78 |
Grocery and general rates use the locations named here. Clothing is one item priced at $100; a more expensive garment may be taxed differently. Fuel and tobacco have separate units and scales.
What you would need there
A $75,000 salary
| To match take-home only | $70,124 |
|---|---|
| You could take a cut of | −$7,085 |
| Prices in New Hampshire | 105 vs 108 |
State taxes and state price levels only. No city tax, and no housing market.
What things actually cost in each
These are the amounts you would need to earn before tax to pay for each thing, at a $75,000.00 salary. Biggest gaps first.
Gross income required at $75,000, using each category's default assumptions, sorted by the absolute difference between the two states.
| Category | Massachusetts | New Hampshire | Difference |
|---|---|---|---|
| Home purchase | $1,271,763 | $1,211,353 | $60,409 cheaper in New Hampshire |
| Wedding | $48,838 | $42,644 | $6,194 cheaper in New Hampshire |
| Coffee habit | $26,737 | $23,376 | $3,361 cheaper in New Hampshire |
| Used car from a private seller | $19,510 | $17,058 | $2,453 cheaper in New Hampshire |
| Car payment or lease | $17,793 | $16,529 | $1,265 cheaper in New Hampshire |
| Funeral | $12,242 | $11,372 | $870 cheaper in New Hampshire |
| Phone plan | $10,544 | $9,794 | $749 cheaper in New Hampshire |
| Jewelry | $5,691 | $4,975 | $715 cheaper in New Hampshire |
| Pet annual cost | $2,517 | $2,200 | $316 cheaper in New Hampshire |
| Furniture | $2,439 | $2,132 | $307 cheaper in New Hampshire |
| Laptop or phone purchase | $1,951 | $1,706 | $245 cheaper in New Hampshire |
| Major appliance | $1,788 | $1,564 | $225 cheaper in New Hampshire |
| Sofa bed | $1,626 | $1,421 | $204 cheaper in New Hampshire |
| Rent | $2,754 | $2,559 | $196 cheaper in New Hampshire |
| Mattress | $1,463 | $1,279 | $184 cheaper in New Hampshire |
| Winter tires | $1,463 | $1,279 | $184 cheaper in New Hampshire |
| Tires | $1,301 | $1,137 | $164 cheaper in New Hampshire |
| Bicycle | $1,138 | $995 | $143 cheaper in New Hampshire |
| Espresso machine | $1,138 | $995 | $143 cheaper in New Hampshire |
| Office chair | $976 | $853 | $123 cheaper in New Hampshire |
| Childcare | $1,683 | $1,564 | $120 cheaper in New Hampshire |
| Air conditioner | $813 | $711 | $102 cheaper in New Hampshire |
| Games console | $813 | $711 | $102 cheaper in New Hampshire |
| Theme park day | $826 | $725 | $101 cheaper in New Hampshire |
| Lawn mower | $732 | $640 | $92 cheaper in New Hampshire |
| Camping gear | $691 | $604 | $87 cheaper in New Hampshire |
| Back-to-school clothes | $796 | $711 | $85 cheaper in New Hampshire |
| Power tools | $650 | $569 | $82 cheaper in New Hampshire |
| Hotel stay | $1,070 | $994 | $76 cheaper in New Hampshire |
| Vacuum cleaner | $569 | $498 | $72 cheaper in New Hampshire |
| Suit | $634 | $569 | $65 cheaper in New Hampshire |
| Cookware | $488 | $426 | $61 cheaper in New Hampshire |
| School uniform | $569 | $512 | $57 cheaper in New Hampshire |
| Luggage | $406 | $355 | $51 cheaper in New Hampshire |
| Health insurance premium | $689 | $640 | $49 cheaper in New Hampshire |
| Gift card | $612 | $569 | $44 cheaper in New Hampshire |
| Student loan payment | $612 | $569 | $44 cheaper in New Hampshire |
| Vet visit | $551 | $512 | $39 cheaper in New Hampshire |
| School supplies | $293 | $256 | $37 cheaper in New Hampshire |
| Running shoes | $406 | $370 | $36 cheaper in New Hampshire |
| Domestic flight | $502 | $466 | $36 cheaper in New Hampshire |
| Work uniform | $341 | $313 | $28 cheaper in New Hampshire |
| Concert ticket | $223 | $196 | $26 cheaper in New Hampshire |
| Meal kit | $367 | $341 | $26 cheaper in New Hampshire |
| Winter coat | $308 | $284 | $24 cheaper in New Hampshire |
| Utilities | $321 | $299 | $23 cheaper in New Hampshire |
| Rental car | $423 | $401 | $22 cheaper in New Hampshire |
| Restaurant dinner | $156 | $136 | $20 cheaper in New Hampshire |
| Weekly groceries | $268 | $249 | $19 cheaper in New Hampshire |
| Car insurance | $252 | $235 | $18 cheaper in New Hampshire |
| Grocery delivery | $217 | $202 | $15 cheaper in New Hampshire |
| Storage unit | $199 | $185 | $14 cheaper in New Hampshire |
| Birthday cake | $184 | $171 | $13 cheaper in New Hampshire |
| Clothing | $184 | $171 | $13 cheaper in New Hampshire |
| Pet food | $98 | $85 | $12 cheaper in New Hampshire |
| Sunscreen | $89 | $78 | $11 cheaper in New Hampshire |
| Costume | $138 | $128 | $9.81 cheaper in New Hampshire |
| Swimwear | $130 | $121 | $9.24 cheaper in New Hampshire |
| First aid supplies | $73 | $64 | $9.20 cheaper in New Hampshire |
| Gym membership | $73 | $64 | $9.20 cheaper in New Hampshire |
| Streaming bundle | $73 | $64 | $9.20 cheaper in New Hampshire |
| Toiletries | $65 | $57 | $8.18 cheaper in New Hampshire |
| Cannabis (legal states) | $108 | $101 | $7.69 cheaper in New Hampshire |
| Internet service | $107 | $100 | $7.61 cheaper in New Hampshire |
| Vitamins and supplements | $57 | $50 | $7.18 cheaper in New Hampshire |
| Pizza delivery | $61 | $54 | $6.81 cheaper in New Hampshire |
| Deli sandwich | $54 | $47 | $6.74 cheaper in New Hampshire |
| Books | $49 | $43 | $6.14 cheaper in New Hampshire |
| Food delivery | $58 | $52 | $6.09 cheaper in New Hampshire |
| Baby clothes | $84 | $78 | $5.99 cheaper in New Hampshire |
| Cinema ticket | $48 | $42 | $5.91 cheaper in New Hampshire |
| Soft drinks | $39 | $34 | $4.92 cheaper in New Hampshire |
| Baby formula | $69 | $64 | $4.89 cheaper in New Hampshire |
| Gas fill-up | $69 | $64 | $4.89 cheaper in New Hampshire |
| Haircut | $64 | $60 | $4.56 cheaper in New Hampshire |
| Dry cleaning | $61 | $57 | $4.38 cheaper in New Hampshire |
| Prescription refill | $46 | $43 | $3.28 cheaper in New Hampshire |
| Over-the-counter medicine | $24 | $21 | $3.06 cheaper in New Hampshire |
| Energy drinks | $23 | $20 | $2.87 cheaper in New Hampshire |
| Coffee beans | $37 | $34 | $2.63 cheaper in New Hampshire |
| Candy | $20 | $17 | $2.45 cheaper in New Hampshire |
| Fast food meal | $20 | $17 | $2.45 cheaper in New Hampshire |
| Frozen meals | $34 | $31 | $2.40 cheaper in New Hampshire |
| Rideshare trip | $34 | $31 | $2.40 cheaper in New Hampshire |
| Bar drink | $18 | $15 | $2.21 cheaper in New Hampshire |
| Cigarettes or vape | $15 | $13 | $1.84 cheaper in New Hampshire |
| Bread and bakery | $21 | $20 | $1.52 cheaper in New Hampshire |
| Snack food | $18 | $17 | $1.31 cheaper in New Hampshire |
| Bottled water | $15 | $14 | $1.09 cheaper in New Hampshire |
| Bottled juice | $14 | $13 | $0.98 cheaper in New Hampshire |
Across the 90 things we can price in both states, New Hampshire comes out cheaper more often. That is not the whole story. Housing, wages and property tax move far more than sales tax does, and none of them are in these numbers. See limitations.
Across the 90 categories computable in both states, New Hampshire is cheaper more often. ⚠️ This compares tax treatment alone: housing costs, prevailing wages and property tax vary far more between states than sales tax does, and none of them enter these figures. See limitations.
Questions people ask
One of these has no income tax — is it simply the cheaper one?
It is cheaper on one line only. Between these two the sales gap alone is about 6.25%, and the state with no income tax is not automatically the one on the low side of it.
Do the different taxes point the same way for this pair?
They agree in this pair. The same state is dearer on both levies, so the ranking is stable rather than depending on the household.
How much would moving between these two actually change?
A real amount, and it varies by household. One of the two levies differs substantially here, so a personal figure beats a general one.
Does the absence of an income tax make this the lower-burden state?
One state levies no personal income tax on wages and the other does. Revenue substitution means the comparison is only meaningful across all three bases: the combined sales rate differs by about 6.25%, and property tax is levied independently. ⚠️ Relative burden depends on a household's income, consumption and property mix, and reverses across that range for many pairs.
Do the levies rank these states consistently?
Both levies rank these states in the same direction, so the burden ordering is stable across consumption patterns rather than reversing at some spending share. ⚠️ Property tax is levied independently and is not included in that consistency; it can still reverse the total for a homeowner.
How material is this differential?
At least one levy differs materially between these states. Aggregate effect is income- and consumption-dependent and should be computed for the specific household rather than inferred from headline rates; the ordering can still reverse once property tax is included.