$110,016 difference over 30 yearsFor one couple (both 60, $2M, 60/40, $80,000 a year to spend after tax), QuantCalc's 51-state planner study found a median 30-year income-tax bill (federal + state + IRMAA) of $272,613 in Massachusetts and $162,597 in New Hampshire — New Hampshire is the cheaper state by $110,016.
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 | $4,490/yr | $0/yr |
| Retirement-friendliness | high tax | tax free |
| 30-yr median income tax, federal + state + IRMAA (MC) | $272,613 | $162,597 |
| 30-yr state income tax (MC) | $109,984 | $0 |
| 30-yr success rate (MC) | 81.55% | 84.05% |
| Median balance at 90 (MC) | $1,899,750 | $2,153,150 |
The income-tax difference, year by year
The simplest way to see the gap: take a married couple, both 65, whose only income is a $100,000 IRA withdrawal split evenly between them. On that withdrawal Massachusetts collects $4,490 in state income tax and New Hampshire collects $0 — a difference of $4,490 every year. Both figures are QuantCalc's state tax engine run on the couple's whole 2026 return in each state, so each state's own brackets, deductions, retirement-income exclusions and credits apply. One flat bracket plus a millionaire surcharge above the surtax threshold, and a $2M estate exemption. No tax on wages, and no tax on interest and dividends since that tax was repealed for 2025 onward.
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. A $100,000 annual withdrawal never reaches that threshold, so the surcharge adds nothing to the withdrawal figures on this page.
Over a 30-year retirement, QuantCalc's 51-state planner study (one couple, identical portfolio and after-tax spending in both states, only the state changes; every year priced by the planner's federal and state tax engines) puts the median income-tax difference at $110,016.
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.
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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 income tax, New Hampshire is the lighter-tax state. In QuantCalc's 51-state planner study, one couple (both 60, $2M, $80,000 a year to spend after tax) pays a median $162,597 of federal and state income tax and IRMAA over 30 years in New Hampshire versus $272,613 in the other — a $110,016 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 no tax on interest and dividends since that tax was repealed for 2025 onward.
How much would moving from Massachusetts to New Hampshire save on retirement taxes?
For a married couple, both 65, whose only income is a $100,000 IRA withdrawal split evenly between them, the state income tax is $4,490 in Massachusetts versus $0 in New Hampshire — $4,490 per year of difference. Over 30 years, the planner study's median income-tax gap was $110,016. Don't forget property tax, sales tax, and estate tax also differ — see the table above.
Last updated 2026-10-12. State tax data 2026 (Tax Foundation + state DoR); the withdrawal figures are QuantCalc's state tax engine. Monte Carlo figures from the QuantCalc 51-state planner study (v2026.3, re-run 2026-10-12, CC-BY-4.0): one couple, both 60, $2M, 60/40, $80,000 a year to spend after tax, in each state. Educational only, not tax advice.