Considering a Move to New Hampshire? Key Financial Benefits for Mass. Residents
As a Massachusetts resident, you may be considering the financial benefits of moving to New Hampshire—like lower taxes, more affordable housing, and the absence of an estate tax. Both of our partners, Tim Borchers and Marc Cusano, have homes and are licensed to practice in both states, so we know firsthand how appealing these advantages can be. It’s one of the reasons we established a branch in Concord, NH.
For high earners, retirees, and those concerned about estate planning, the financial benefits of moving to New Hampshire can be compelling. However, making a move is about more than just dollars and cents, especially when thinking about moving your family. Massachusetts offers a robust job market, top-tier healthcare and educational opportunities, cultural amenities, and often close proximity to family and friends. We’ll explore the financial contrasts while also factoring in quality-of-life considerations to help you evaluate if New Hampshire aligns with both your financial and lifestyle priorities.
Tax Advantages: Income, Sales, and Estate Taxes
A significant factor for many high-income Massachusetts residents is the tax advantages that New Hampshire provides. Massachusetts has a 5.00% income tax rate, which can add up quickly. By contrast, New Hampshire has no state income tax, offering potential savings, particularly for those with high wages, investments, or other income streams.
Massachusetts also has a 6.25% sales tax on goods and services, which isn’t levied in New Hampshire. This absence of sales tax can lower the cost of big-ticket items and everyday purchases. However, New Hampshire does impose a 9% meals and lodging tax, so frequent dining out or travel within the state may still come at a premium.
Estate Taxes: Massachusetts vs. New Hampshire
Massachusetts has one of the lowest estate tax exemptions in the country at $2 million, with tax rates reaching up to 16%. New Hampshire, on the other hand, has no estate or inheritance tax, which can be particularly appealing for those looking to protect generational wealth. This can make New Hampshire attractive for high-net-worth individuals who wish to pass on assets without a significant tax burden.
Housing Costs: New Hampshire’s More Affordable Market
New Hampshire’s housing costs in 2024 are notably lower than Massachusetts’, with an average home price at $479,752, compared to Massachusetts’ average of $627,596 (according to Zillow). Prices in Boston and surrounding areas often exceed $800,000, while New Hampshire offers a range of more affordable housing, especially in cities like Manchester and Nashua.
For those downsizing or seeking more space, moving across the border could be a financially smart choice. However, for people working in industries centered in Greater Boston, a move could increase commute times and costs or even impact career opportunities, as job growth and industry diversity are more pronounced in Massachusetts.
Although New Hampshire has one of the highest dependencies on real estate property taxes in the country, you would have to do direct comparisons of what taxes you might pay in any community you would move to compared, presumably, to what you are paying in your Massachusetts (or other) community to really know the impact.
Everyday Costs: Utilities, Groceries and Childcare
Utility costs in Massachusetts and New Hampshire are similar, so they would not be a significant factor when comparing costs between the two states, while the cost for groceries on the other hand, varies greatly.
Groceries are significantly less expensive in New Hampshire. According to World Population Review, grocery costs in New Hampshire in 2024 are among the lowest nationwide, averaging $183 per month per person. Massachusetts residents pay $406 per month per person due to higher demand, especially in urban areas. For some, this could offer a modest but noticeable monthly savings if moving to New Hampshire.
Massachusetts has the highest childcare costs in the nation, according to Procare Solutions’ report “Child Care Costs by State 2023,” Infant care in Massachusetts averages $24,005 per year, compared to $17,250 in New Hampshire. For center-based care for 4-year-olds, Massachusetts parents pay an average of $18,760 annually, while New Hampshire parents pay around $14,618. Differences in both childcare and grocery costs could lead to substantial yearly savings for families who choose to move from Massachusetts to New Hampshire.
Transportation and Commute Considerations
Transportation expenses in New Hampshire tend to be lower overall, but public transit options are limited compared to Massachusetts. Gas prices are generally lower in New Hampshire, contributing to lower annual transportation costs. The average annual transportation cost for a single adult in New Hampshire is $5,078, compared to $5,699 in Massachusetts, according to Forbes’ “Examining The Cost Of Living By State In 2024.”
Massachusetts residents benefit from the extensive MBTA network, particularly in and around Boston, which offers significant time and cost savings for commuters. If you rely on public transportation, this might be a quality-of-life factor that weighs against New Hampshire’s lower overall transportation costs. For those commuting from New Hampshire back into Massachusetts, travel expenses and time might diminish some of the financial savings gained from lower taxes and housing costs.
Healthcare: Accessibility vs. Costs
New Hampshire offers slightly lower healthcare costs than Massachusetts, with averages at $11,359 annually in New Hampshire versus $12,754 annually in Massachusetts, but both states land in the top 10 for most expensive healthcare costs. In this analysis, healthcare costs include insurance premiums, deductibles, copayments, coinsurance and out-of-pocket expenses.
While more expensive, Massachusetts is home to some of the nation’s top hospitals and healthcare providers, particularly in Boston. Access to high-quality, specialized healthcare can be a crucial factor for those with ongoing medical needs or who value having a world-class hospital system nearby. Residents relocating to New Hampshire may find their options more limited and may need to factor in travel if they wish to continue care in Massachusetts.
Final Thoughts: Weighing New Hampshire’s Financial Benefits Against Massachusetts’ Quality of Life
For Massachusetts residents, moving to New Hampshire can bring considerable financial advantages, from no state income tax and lower housing costs to reduced grocery and childcare expenses. These factors make New Hampshire attractive for high earners, retirees, and those with estate planning needs, allowing them to preserve income and assets with fewer tax burdens.
However, the Massachusetts job market, quality healthcare, robust education system, and cultural amenities are hard to match. Massachusetts residents should carefully evaluate whether the financial savings justify the potential trade-offs in quality of life, career opportunities, and access to services. While New Hampshire may be the ideal choice for financial efficiency, Massachusetts offers a vibrant, well-connected lifestyle that continues to attract and retain residents.
We can help you calculate estate tax savings, certainly. For additional help on the effect of a moving to New Hampshire on your income tax, we would be pleased to refer you to tax accountants who can help you run the numbers.