Active-duty pay
No State Income Tax
No state income tax on wages.
State Guide · NH
New Hampshire — Military Tax Treatment
New Hampshire eliminated its dividend and interest tax in 2023 — there is now truly no NH income tax on any income, including military pay and retirement.
Tax treatment at a glance
Guard & Reserve drill pay
No State Income Tax
No state income tax. Guard and Reserve drill pay not taxed.
Military retirement pay
No State Income Tax
No state income tax on wages or retirement.
VA disability compensation
Always tax-free
Federally tax-free under 38 USC § 5301. No state taxes VA disability compensation as income — New Hampshire included.
Survivor Benefit Plan (SBP)
Follows retirement
No state income tax — SBP not taxed in New Hampshire.
Federal rules that override state law
SCRA — Servicemembers Civil Relief Act
Active-duty servicemembers pay state income tax only to their state of legal domicile — not the state where they are stationed. If you are from Texas and stationed in New Hampshire, New Hampshire cannot tax your military pay. This applies during all active duty periods and during Guard/Reserve mobilizations on federal (Title 10) orders.
MSRRA — Military Spouses Residency Relief Act
Military spouses can maintain their home-state domicile even when living in a different state due to their servicemember's orders. A spouse who is a Texas resident following their servicemember to New Hampshire can keep Texas as their tax domicile and avoid New Hampshire state income tax on their wages.
Guard & Reserve — the SCRA gap
SCRA pay protections apply during federal (Title 10) activation orders. During routine drill weekends and state-only activations, Guard and Reserve members are state residents serving in their home state — SCRA does not protect their drill pay from state income tax. Whether New Hampshire exempts that pay is the state-specific question answered above.
Filing watch-outs
- 01No state income tax return required for wages or military pay.
Veteran-specific tax benefits
State once taxed interest/dividends only; that's been phased out. Veteran property tax exemptions vary by municipality.
Official authority
https://www.revenue.nh.gov/ ↗State tax law changes annually. Verify current rules with the New Hampshire Department of Revenue before making any tax decision.
New Hampshire military tax — common questions
Does New Hampshire tax military retirement pay in 2026?
New Hampshire does not tax military retirement pay. No state income tax on wages or retirement.
Does New Hampshire tax active-duty military pay?
New Hampshire does not tax active-duty military pay for state residents. No state income tax on wages. Under the SCRA, New Hampshire can only tax the military pay of service members who are legally domiciled in New Hampshire — not those merely stationed there.
Does New Hampshire tax National Guard and Reserve drill pay?
New Hampshire does not tax Guard and Reserve drill pay. No state income tax. Guard and Reserve drill pay not taxed.
Is VA disability compensation taxed in New Hampshire?
No. VA disability compensation is federally tax-free under 38 U.S.C. § 5301, and no state — including New Hampshire — taxes it as income.
If I'm stationed in New Hampshire but claim another state, can New Hampshire tax my military pay?
No. Under the Servicemembers Civil Relief Act (SCRA), active-duty pay is taxable only by your state of legal domicile, not the state where you are stationed. If your domicile is elsewhere, New Hampshire cannot tax your active-duty military pay. Military spouses get the same protection under the MSRRA.
Related tools
Other state guides