Every year, plenty of Massachusetts homeowners look north and wonder: would we be better off in Southern New Hampshire? The tax picture is a big part of the appeal, but it’s not as simple as “no income tax.” Here’s an honest look at what changes when you cross the border, from taxes to everyday life.
The Big Draw: No Income Tax and No Sales Tax
New Hampshire has no broad-based personal income tax and no general sales tax. The state’s tax on interest and dividends was also fully repealed starting January 1, 2025, so investment income isn’t taxed at the state level either.
Massachusetts, by comparison, taxes most income at 5%, with an extra 4% surtax on income over $1,107,750 in 2026. Massachusetts also charges a 6.25% sales tax on most purchases.
NH does have some targeted taxes, including an 8.5% tax on restaurant meals and hotel rooms, but day-to-day shopping is tax-free. That’s why you’ll see so many Massachusetts plates in Salem and Nashua parking lots on the weekend!
The Catch: Commuting Back to Massachusetts
This is the one that surprises people most. If you live in New Hampshire but keep working in Massachusetts, you’ll generally still owe Massachusetts income tax on the wages you earn there. Moving north doesn’t make that go away.
The income tax savings are biggest for people who work in New Hampshire, work remotely for a NH-based or out-of-state employer, or are retired. Rules for remote workers can get complicated, so talk with a tax professional about your situation before you make the move.
Property Taxes: Higher Rates, but Compare the Whole Bill
New Hampshire relies heavily on property taxes to fund towns and schools, so rates are usually higher than in Massachusetts. Here’s a quick look at 2025 rates in some popular Southern NH towns, next to Andover and North Andover:
| Town | Tax rate per $1,000 of assessed value |
|---|---|
| Windham, NH | $14.15 |
| Londonderry, NH | $14.47 |
| Nashua, NH | $16.83 |
| Salem, NH | $18.16 |
| Derry, NH | $18.99 |
| Andover, MA (FY2026) | $12.31 |
| North Andover, MA (FY2025) | $11.26 |
A higher rate doesn’t automatically mean a higher bill. Home prices and assessed values differ town to town, so the best comparison is the actual tax bill on homes you’re considering. We’re happy to pull those numbers for you.
Other Costs to Know About
- Car registration: In NH you register your car through your town, and the fee includes a local permit fee based on the vehicle’s value. It’s often highest in the first years you own a newer car.
- Home and car insurance: Rates vary by town and provider, so get quotes early.
- Utilities: Many Southern NH homes have private wells, septic systems, oil or propane heat. Factor in maintenance and fuel costs when comparing homes.
Lifestyle: What Daily Life Looks Like
- More space for your money: Many buyers find bigger lots and a more rural feel just over the border.
- Easy access to the outdoors: Lakes, rail trails like the Windham Rail Trail, and the White Mountains and Lakes Region are closer.
- Tax-free shopping close to home: Salem and Nashua have major retail areas, plus newer mixed-use spots like Tuscan Village in Salem.
- Commute: Towns along I-93 and Route 3 keep Boston and the Route 128 corridor within reach, but expect a longer drive, especially in winter.
- Town government: Many NH towns still hold a traditional town meeting or annual vote, so residents have a direct say in budgets and taxes.
Popular Southern NH Towns for Massachusetts Buyers
- Salem: Right off I-93 with major shopping and dining.
- Windham: Larger homes, well-regarded schools and a quieter, more residential feel.
- Pelham: Rural character on the Massachusetts border, close to Lowell and Dracut.
- Londonderry and Derry: A wide range of home styles and prices, close to Manchester-Boston Regional Airport.
- Nashua: A small city with a lively downtown, near Route 3.
Is the Move Right for You?
For many people, especially retirees and those who work in New Hampshire, the savings can be real. For others, a long commute and Massachusetts income tax on their wages make it less of a win than it first looks. The right answer comes down to your income, your job, your home budget and the lifestyle you want.
Ron Carpenito and the Prime Property Team help buyers and sellers on both sides of the border. Whether you’re selling in Massachusetts, buying in Southern NH or doing both at once, reach out to start a conversation. We’ll help you compare the real numbers.
This article is for general information only and isn’t tax or legal advice. Tax rules change, so please consult a tax professional about your situation. Tax rates are from published town and state sources as of 2025-2026.
Featured photo: John Phelan, CC BY-SA 4.0, via Wikimedia Commons.
