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Dead Last

The Tax Foundation released its 2026 edition of Facts & Figures: How Does Your State Compare? this week, compiling over 40 measures of state tax rates, collections, burdens, and competitiveness. One number jumped off the page: New Hampshire ranks 50th out of 50 states in state tax collections per capita. Dead last. The state government collects $2,527 per person. The national average is $4,363.

That is less than Alaska. Less than Florida. Less than Texas. Less than every other state in America. And somehow, New Hampshire also ranks 3rd in the nation for tax competitiveness, 8th in income per capita, and 1st in taxpayer return on investment. The state that collects the least delivers the most.

The New England Comparison

The Tax Foundation data covers dozens of metrics. Across nearly all of them, New Hampshire stands apart from its neighbors. Here is how the six New England states compare on key measures.

State	State Tax/Capita	Competitiveness	Income/Capita
New Hampshire	$2,527 (#50)	#3	$83,192 (#8)
Massachusetts	$6,049 (#9)	#43	$93,607 (#2)
Connecticut	$6,338 (#6)	#47	$95,067 (#1)
Rhode Island	$4,745 (#14)	#40	$70,622 (#23)
Maine	$4,639 (#16)	#26	$68,932 (#27)
Vermont	$7,150 (#3)	#42	$71,287 (#19)

Sources: Tax Foundation, Facts & Figures 2026; Bureau of Economic Analysis. Competitiveness rank: 1 = best. Tax collections rank: 1 = highest collections.

Vermont's state government collects $7,150 per person. That is nearly three times what New Hampshire collects. Connecticut takes $6,338. Massachusetts takes $6,049. In return for all that revenue, those states rank 42nd, 47th, and 43rd in tax competitiveness. New Hampshire ranks 3rd.

On income per capita, New Hampshire comes in at $83,192, 8th in the nation. That is higher than Vermont ($71,287), Maine ($68,932), and Rhode Island ($70,622). Connecticut and Massachusetts have higher per capita incomes, but they also have significantly higher costs of living and tax burdens to match. The Tax Foundation's own burden data shows Connecticut residents pay 15.4% of their income in state and local taxes (49th worst), while New Hampshire residents pay 9.6% (16th lowest).

The Competitiveness Edge

The Tax Foundation's State Tax Competitiveness Index evaluates state tax codes across more than 150 variables in five categories: corporate taxes, individual income taxes, sales taxes, property taxes, and unemployment insurance taxes. New Hampshire's overall rank of 3rd is driven by its structural advantages.

Component	NH Rank	VT	ME	MA	CT
Individual Income Tax	#1	#39	#23	#42	#46
Sales Tax	#1	#30	#9	#22	#19
Corporate Tax	#37	#38	#40	#33	#30
Property Tax	#44	#50	#45	#48	#49
Unemployment Ins.	#23	#12	#21	#45	#39
Overall	#3	#42	#26	#43	#47

Source: Tax Foundation, 2026 State Tax Competitiveness Index. Rank of 1 = best.

New Hampshire ties for #1 in both individual income tax and sales tax competitiveness. No income tax. No sales tax. Those two zeroes are the foundation of the state's competitive position. The elimination of the interest and dividends tax on January 1, 2025, vaulted NH up 12 spots on the individual income tax component and 3 spots overall.

The weak spots are real. New Hampshire ranks 37th on corporate taxes (the 7.5% business profits tax rate is above average) and 44th on property taxes. But those weaknesses are more than offset by the complete absence of the two taxes that hit individuals hardest: income and sales. The total package is 3rd best in the country.

The Property Tax Trade-Off

New Hampshire's effective property tax rate on owner-occupied housing is 1.35%, the 6th highest in the nation according to the Tax Foundation. Only Illinois (1.79%), New Jersey (1.68%), Vermont (1.40%), Nebraska (1.38%), and Connecticut (1.36%) are higher.

Property taxes are a legitimate concern for Granite State homeowners. But the Tax Foundation data makes the trade-off clear. New Hampshire's state government collects less per person than any state in America. Property taxes are higher because the state has no income tax and no sales tax to subsidize local services. Even with the 6th highest property taxes, NH's total state and local tax collections per capita ($5,784) rank just 33rd. The trade works.

Vermont, by comparison, has the 3rd highest property tax rate (1.40%) and also has an income tax, a sales tax, and the 3rd highest state tax collections per capita in the country. Higher taxes everywhere, and still higher property taxes than New Hampshire. That is not a model worth copying.

Two Studies, One Story

The Tax Foundation data arrives days after WalletHub ranked New Hampshire's total tax burden the 2nd lowest in America at 5.38% of income. Different organizations, different methodologies, same conclusion: New Hampshire's government takes less and delivers more.

WalletHub also ranked NH #1 in taxpayer return on investment for the 11th consecutive year. The Tax Foundation ranks it #3 in tax competitiveness. The Bureau of Economic Analysis puts its per capita income at 8th nationally. These are not marginal advantages. They are structural.

Dead last in what the state takes. Near the top in what its residents earn. First in freedom, safety, and taxpayer ROI. The numbers make the case better than any politician ever could.