$63,000 difference over 30 yearsFor an identical retiree (age 60, $2M, 60/40, $80K real spend), QuantCalc's Monte Carlo study found a median 30-year state-tax gap of $63,000 between Massachusetts and New Hampshire — New Hampshire is the cheaper state. That money stays invested, which is why New Hampshire's median terminal balance is higher.
Massachusetts vs New Hampshire at a glance
| Factor | Massachusetts | New Hampshire |
|---|---|---|
| State income tax | 9.00% top | None |
| Taxes Social Security | No | No |
| Taxes 401(k)/IRA | Yes | No |
| State estate/inheritance tax | Yes | No |
| Tax on $100k withdrawal | $5,000/yr | $0/yr |
| Retirement-friendliness | high tax | tax free |
| 30-yr median state tax (MC) | $63,000 | $0 |
| 30-yr success rate (MC) | 73.42% (#32) | 76.14% (#8) |
| Median terminal balance (MC) | $866,823 | $981,942 |
The income-tax difference, year by year
The simplest way to see the gap: on a steady $100,000 annual retirement withdrawal, Massachusetts collects about $5,000 in state income tax and New Hampshire collects about $0 — a difference of roughly $5,000 every year. One flat bracket plus a millionaire surcharge above the surtax threshold, and a $2M estate exemption. No tax on wages, and the residual interest and dividends tax is fully phased out by 2027.
Massachusetts reaches 9.00% only above $1,107,750 of taxable income: a 5.00% bracket rate plus a 4.00% surcharge on the excess. Every dollar figure on this page uses the 5.00% bracket rate, because a $100,000 annual withdrawal never reaches that threshold.
Over a 30-year retirement, QuantCalc's Monte Carlo simulation (identical portfolio and spending in both states, only the tax code changes) puts the median lifetime state-tax difference at $63,000 — and because the saved tax stays invested and compounds, New Hampshire's median ending balance is the higher of the two.
Beyond income tax
State income tax is only part of the retirement-cost picture. When comparing Massachusetts and New Hampshire, also weigh:
- Property tax — a tax-free-income state can still have high property tax; factor your home value.
- Sales tax — affects every dollar you spend, not just income.
- Estate / inheritance tax — Massachusetts: has one; New Hampshire: none. Matters for larger estates.
- Roth conversion cost — converting in the lower-income-tax state of the two cuts the state tax on each converted dollar. See conversion-tax scenarios.
See Massachusetts vs New Hampshire on your full plan
Free 10,000-path Monte Carlo with every state's tax engine, Roth optimizer, ACA cliff, and IRMAA — in your browser, no signup.
Compare all states →Compare other states
Deep-dive either state: Massachusetts retirement tax guide · New Hampshire retirement tax guide. Or see the full 50-state comparison and the 51-state Monte Carlo study.
FAQ
Is Massachusetts or New Hampshire better for retirement taxes?
On state income tax, New Hampshire is the lighter-tax state. In QuantCalc's 30-year Monte Carlo study, a representative retiree paid a median of $0 in state tax in New Hampshire versus $63,000 in the other — a $63,000 lifetime difference on identical income and spending.
Does Massachusetts tax Social Security and 401(k) withdrawals?
Massachusetts does not tax Social Security benefits and taxes 401(k)/traditional IRA distributions at the state level. One flat bracket plus a millionaire surcharge above the surtax threshold, and a $2M estate exemption.
Does New Hampshire tax Social Security and 401(k) withdrawals?
New Hampshire does not tax Social Security benefits and exempts 401(k)/traditional IRA distributions at the state level. No tax on wages, and the residual interest and dividends tax is fully phased out by 2027.
How much would moving from Massachusetts to New Hampshire save on retirement taxes?
On a $100,000 annual withdrawal, the state income tax is about $5,000 in Massachusetts versus $0 in New Hampshire — roughly $5,000 per year of difference. Over 30 years, the Monte Carlo median gap was $63,000. Don't forget property tax, sales tax, and estate tax also differ — see the table above.
Last updated 2026-08-23. State tax data 2026 (Tax Foundation + state DoR). Monte Carlo figures from the QuantCalc 51-state study (2026-05-12, CC-BY-4.0): identical age-60 / $2M / 60-40 / $80K-real-spend retiree in each state. Educational only, not tax advice.