Living Guide · New Hampshire
Pros and Cons of Living in New Hampshire
An honest guide from a Realtor licensed on both sides of the border — no income tax is real, and so are the trade-offs.
An honest guide from a Realtor licensed on both sides of the border — no income tax is real, and so are the trade-offs.
New Hampshire offers real financial advantages — no income tax, no sales tax, and home prices that can undercut comparable Massachusetts towns by $100,000 or more. The trade-offs are equally real: property taxes among the highest in the country, school quality that varies dramatically by town, a painful commute to Boston by car, and healthcare access that thins out outside the major cities. Whether NH works for your family depends almost entirely on your income, your job location, and which specific town you choose.
Every few weeks, a client sits across from me and says some version of the same thing: "We keep hearing we should just move to New Hampshire. No income tax, cheaper homes, more space. Is it actually worth it?"
The honest answer is: sometimes yes, sometimes no — and the difference between those two outcomes comes down to specific details that most online articles gloss over. I have been licensed in both Massachusetts and New Hampshire for over 20 years. I have helped families buy in Salem NH, Londonderry, Portsmouth, and Exeter. I have also watched buyers make the move only to feel surprised by a property tax bill they did not fully calculate, or by a commute that turned out to be two hours each way on a bad Tuesday.
This guide gives you the honest picture. The full picture. The one I give clients who ask me directly what I think.
Let's start with the headline that draws people north in the first place. As of January 1, 2025, New Hampshire officially joined Alaska as one of only two states in the country with no income tax and no sales tax. The final piece — the Interest and Dividends tax that had lingered at 3 percent — was repealed, making wages, salaries, and investment income entirely tax-free at the state level.
That is real money. For a household earning $150,000, Massachusetts collects roughly $7,500 in state income tax (at the 5 percent flat rate, plus the new 4 percent surtax on income above $1 million). Moving to NH puts that entire amount back in your pocket every year. Over a decade, that is $75,000 or more. It is not a small number.
A note on legislative uncertainty: House Bill 503-FN has been introduced to reinstate an Interest and Dividends tax at 5 percent, subject to a $20,000 income threshold. As of this writing, it has not passed. New Hampshire has a strong cultural and political resistance to income taxation, so reinstatement is not likely — but it is worth knowing the conversation exists.
The no-sales-tax benefit is equally concrete. New Hampshire has no tax on clothing, furniture, electronics, appliances, lumber, or most goods. Massachusetts charges 6.25 percent on most purchases. Families making large purchases — a new car, kitchen appliances, furniture for a new home — regularly save hundreds or thousands of dollars by buying in NH. Plenty of Massachusetts residents already make the drive north specifically for major purchases.
Now for the trade-off nobody puts in the headline. The Tax Foundation ranks New Hampshire 6th highest in effective property tax rate nationally, with a 2025 median effective rate of approximately 1.61 percent and a median annual property tax payment of $6,372. That is before you account for the fact that home prices in many sought-after NH towns are now comparable to Massachusetts suburbs.
The reason property taxes are high is structural: New Hampshire funds its public schools and local services primarily through property taxes. School funding accounts for 60 to 75 percent of the total property tax bill in most NH towns. Without income tax or sales tax revenue flowing to the state, the burden falls on property owners.
Tax rates vary significantly by town. Here is what certified NH DRA data shows for commonly considered commuter markets:
| Town | 2025 Tax Rate (per $1,000) | Median Home Price | Est. Annual Tax on Median |
|---|---|---|---|
| Portsmouth | $11.51 | $720,000 | ~$8,287 |
| Londonderry | $14.47 | $583,900 | ~$8,449 |
| Salem NH | $18.16 | $576,500 | ~$10,469 |
| Exeter | $18.76 | $540,000 | ~$10,130 |
| Derry | $18.99 | $490,000 | ~$9,305 |
These numbers matter for your real calculation. A family earning $150,000 saves roughly $7,500 per year in MA income tax by moving to NH. If their NH property tax bill is $10,000 per year versus $7,000 on a comparable Massachusetts home, the net tax savings is closer to $4,500 — still meaningful, but not the full $7,500 advertised. Run the specific numbers for the specific town and home value you are considering.
Revaluation matters: New Hampshire requires town-wide property revaluations every five years. Londonderry's 2025 rate dropped to $14.47 from $16.14 after its revaluation as assessed values caught up with market values. The mill rate (per $1,000) can look different before and after revaluation, even if the actual tax burden is similar.
Massachusetts sits at or near the top of every national education ranking year after year. This is not merely reputation — it reflects consistently strong NAEP scores across most income and demographic groups, well-funded districts, and a culture of high educational expectations that runs through most communities.
New Hampshire is more complicated. NH NAEP scores are above the national average in raw numbers, but when researchers adjust for student demographics, NH falls to near the bottom of state rankings. What that means in plain language: NH's aggregate scores look good partly because of its relatively affluent, non-diverse student population. The schools themselves are not systematically producing results above what demographics alone would predict.
That said, school quality in NH varies dramatically by town — and some NH districts are genuinely excellent.
Portsmouth: Portsmouth High School earns a 10 out of 10 on GreatSchools — a rating matched by only a handful of schools in the entire state. The district is well-funded, the town is engaged in education, and outcomes are consistently strong.
Londonderry: Londonderry School District is its own district with a solid reputation, strong community involvement, and consistently above-average outcomes. It is one of the reasons the town is so sought-after by families.
Exeter: Exeter serves students through SAU 16, which includes Phillips Exeter Academy in its orbit (though the prep school is separate and private). The public district has strong outcomes and benefits from the town's educated, engaged population.
Derry: Derry is the most unusual case. Derry students attend Pinkerton Academy — a private institution that also serves as the public high school for Derry and several surrounding towns. The arrangement has worked for generations of students and Pinkerton has a strong athletic and vocational program alongside its college preparatory curriculum.
Salem NH: Salem operates as SAU 57 with its own district. Outcomes are generally average for NH — not a drawback, but not a premium school story either.
If schools are a primary reason for your move, research the specific district rather than making assumptions about the state. The range within NH is wider than within most Massachusetts commuter communities, where even average districts tend to be solid.
This is where the NH equation gets complicated for working professionals who need to be in Boston regularly. Southern New Hampshire and Boston are connected primarily by I-93 — one of the most congested highway corridors in New England.
From Salem NH to downtown Boston: off-peak, the drive is 25 to 40 minutes. During peak morning hours, 40 to 70 minutes or more is realistic. From Londonderry or Nashua, add another 10 to 20 minutes. On a heavy traffic day — a Patriots game, a storm, a highway incident — commuters report two to four hours total driving time for a round trip.
There is no MBTA commuter rail serving Salem, Londonderry, Derry, Nashua, or Manchester. The closest MBTA access points are Haverhill and Lawrence on the Haverhill Line, or Lowell. Some NH residents drive south to one of those stations and ride the train in. This is not convenient, but it is a real strategy some commuters use.
The most practical transit option for southern NH residents commuting to Boston is the Boston Express bus from Salem NH Transportation Center (Exit 2 off I-93), the North Londonderry Transportation Center (Exit 5), or Nashua at Exit 8. Buses run frequently during peak commute hours and use the highway shoulders where allowed. The ride is more comfortable and more predictable than driving, and allows commuters to work during transit.
Exeter stands apart from other NH commuter towns: it has Amtrak Downeaster service to Boston North Station. With roughly five trains daily in each direction and a travel time of approximately 70 minutes, it is genuinely viable for commuters who can structure their schedule around train times. This is one of the primary reasons Exeter commands a premium despite its distance from Boston.
For remote workers: If your job does not require a daily presence in Boston, the commute issue disappears entirely — and the NH value proposition becomes substantially stronger. No income tax, no sales tax, more space for your budget, and the White Mountains within two hours. For remote and hybrid workers, NH is an extremely competitive option.
Southern New Hampshire feels genuinely different from suburban Massachusetts, and not just in quantifiable ways. It is more spread out. Lots are larger. Downtowns are less dense. The cultural orientation leans toward the outdoors, toward independence, toward a kind of lived-in practical quality that some buyers find refreshing and others find a bit isolating.
Spend a weekend in Portsmouth and you will find a city that punches well above its weight: a beautiful Seacoast downtown, genuine restaurant culture, arts spaces, a harbor, and a walkability that rivals small Massachusetts cities like Newburyport or Gloucester. Portsmouth is the exception in NH, not the rule.
In Salem, Londonderry, Derry, and Nashua, life is car-dependent. Grocery stores, restaurants, and shopping are excellent — NH has strong retail — but they require a drive. Your neighbors may be on the same block or a quarter-mile away. That privacy and space is appealing to many buyers, particularly families with children who want yards and quiet streets.
New Hampshire gives you fast access to the White Mountains, Lake Winnipesaukee, Franconia Notch, and hundreds of miles of hiking trails. State parks are plentiful and underused compared to their Massachusetts equivalents. Winter sports — skiing at Gunstock, Bretton Woods, Waterville Valley — are a short drive rather than a two-hour haul. The outdoor lifestyle is not a marketing tagline in NH — it is a real, daily part of life for many residents.
The "Live Free or Die" ethos is real too. Fewer regulations, more personal autonomy, lower government presence in daily life. Some buyers find this freeing. Others, coming from communities with strong public infrastructure, find it means more do-it-yourself responsibility in exchange for that freedom.
This is one of the less-discussed aspects of NH living, and it matters more as families grow older or develop more complex medical needs.
New Hampshire's largest medical centers are in Manchester (Elliot Hospital, Catholic Medical Center) and Nashua (Southern NH Medical Center). Outside those hubs, rural NH hospitals have faced funding pressures as federal rural healthcare programs are examined and adjusted. For routine care, most NH towns are well-served. For specialized care — oncology, complex cardiology, major surgery — many NH residents travel to Boston's teaching hospitals.
If you or a family member has ongoing complex medical needs, the proximity to Mass General, Brigham and Women's, or Children's Hospital Boston is a legitimate factor to weigh against the financial benefits of NH. Being 90 minutes away from specialized care is a different reality than being 30 minutes away.
Here is a practical rundown of the towns I recommend clients explore, and what each one actually offers.
Salem sits right on I-93 at the Massachusetts line. It is the easiest crossing point, has strong commercial development (Rockingham Park area, major retailers, restaurants), and had a median home price of approximately $576,500 in early 2026. The 2025 property tax rate is $18.16 per $1,000, which is one of the higher rates in the region. Salem is most attractive for buyers who want maximum highway access and proximity to the Massachusetts border. It is less suited to buyers seeking quiet residential neighborhoods or strong school identity.
Londonderry is one of the most sought-after family destinations in southern NH. Its own school district, spacious residential neighborhoods, a genuine sense of community, and a median home price around $583,900 make it a premium but still accessible option. The 2025 property tax rate of $14.47 per $1,000 — down from $16.14 after the town-wide revaluation — is one of the better tax stories in southern NH. The Boston Express bus from the North Londonderry Transportation Center (Exit 5 off I-93) provides a practical commute option.
Derry is among the more affordable southern NH towns, with a median home price around $490,000 in early 2026. Its property tax rate of $18.99 per $1,000 is the highest among the towns profiled here. Derry's unique asset is Pinkerton Academy — a private institution that serves as the public high school for Derry and surrounding communities, with a strong athletics program and a wide range of academic offerings. Population is approximately 34,317. Derry has a working-class character that some buyers find authentic; others find it a harder sell when reselling.
Portsmouth is simply the best city in New Hampshire for buyers who value walkability, cultural amenities, strong schools, and coastal access. The median home price was approximately $720,000 in early 2026 — the highest in the state. The certified property tax rate is $11.51 per $1,000, the lowest among the towns here. Portsmouth High School earns a 10 out of 10 on GreatSchools. The trade-off is the highest home prices in the state and a longer drive from Boston — roughly 60 to 90 minutes depending on traffic. Portsmouth is for buyers who are willing to pay for quality of place.
Exeter has a population of approximately 10,345, a charming historic downtown, and the Amtrak Downeaster to North Station. Median home prices were around $540,000 in early 2026. The 2025 tax rate of $18.76 per $1,000 is on the higher end. Exeter is a relatively small, educated, community-oriented town with a genuine sense of place. The train access makes it the only southern NH option with practical rail commuting, which justifies the price premium for many buyers.
Nashua is the second-largest city in New Hampshire, with a population over 90,000 and a genuine urban core. It has more housing supply, more dining and retail options, and a mixed-income community that gives it a different energy from smaller NH towns. Home prices are generally in the $450,000 to $550,000 range. The Boston Express bus from Nashua at Exit 8 is a real commuting option. Nashua is the right choice for buyers who want city amenities, housing affordability, and NH tax benefits in combination.
Manchester is New Hampshire's largest city and often overlooked by buyers who come from Massachusetts suburbs. It has a Millyard district undergoing real revitalization, a small but growing arts and restaurant scene, Manchester-Boston Regional Airport, and home prices that are still generally accessible compared to comparable Massachusetts urban markets. Median home prices hover in the $430,000 to $500,000 range depending on the neighborhood. Manchester rewards buyers who are willing to explore neighborhoods carefully, as quality varies significantly block by block.
Before committing to any specific town, run the actual numbers. Here is the framework I walk clients through:
Step 1 — Calculate your MA income tax savings. Take your household gross income, multiply by the applicable Massachusetts rate (5 percent on most income), and that is your annual savings from moving to NH.
Step 2 — Calculate the property tax differential. Find the specific town's certified tax rate and the assessed value of the home you are considering. Multiply rate by assessed value. Compare this to what you would pay on a comparable MA home. The difference reduces your income tax savings.
Step 3 — Factor in commuting costs. If you will commute more than before, add the cost of tolls, gas, parking, or Boston Express passes. If you are switching from a 20-minute MA commute to a 75-minute NH commute five days a week, the cost in time and money is real.
Step 4 — Consider healthcare premiums. If your employer covers insurance, this may not change. If you are buying on the open market or through an NH plan, research plan availability and cost in your specific area.
Step 5 — Factor in the home price differential. If you can buy an equivalent home in NH for $80,000 less than in MA, that savings reduces your mortgage, your down payment needs, and your monthly carrying costs.
The families who tend to do best with the NH move are: remote workers who eliminate commute friction entirely; high-income earners who make the most of the income tax savings; and buyers who genuinely value outdoor lifestyle and space over urban proximity. The families who regret the move most often underestimated the property tax bill, the commute, or how much they relied on being close to Boston for medical, cultural, or family reasons.
New Hampshire is not a financial cheat code. It is a genuine trade. You give up Massachusetts income tax and sales tax obligations in exchange for higher property taxes, more car dependency, less consistent school quality, and greater distance from Boston's healthcare and cultural infrastructure. Whether that trade is worth it is a personal answer that depends on your income, your job, your family's needs, and the specific town you choose.
What I tell my clients is this: do not move to New Hampshire because someone told you it is cheaper. Move to New Hampshire because you looked at the specific numbers, visited the specific town, understood the commute you would actually do, and genuinely liked the life you saw there. If all of that lines up, the financial advantages are real and meaningful. If you are moving primarily on the tax story without doing that homework, you may find yourself back in Massachusetts sooner than you planned.
I have helped dozens of families work through exactly this decision. I am licensed in both states for a reason — because the right answer is sometimes Massachusetts and sometimes New Hampshire, and I would rather help you find the right one than sell you the wrong one.
Yes. As of January 1, 2025, New Hampshire eliminated its final remaining income tax — the Interest and Dividends tax — making it one of only two states in the country with no income tax and no sales tax. Wages, salaries, and investment income are all exempt from state taxation.
New Hampshire funds public schools and local services almost entirely through property taxes, since there is no broad income or sales tax base. The Tax Foundation ranks New Hampshire 6th highest in effective property tax rate nationally, with a median annual payment of $6,372 and a 2025 median effective rate of approximately 1.61 percent.
Salem NH's 2025 certified tax rate is $18.16 per $1,000 of assessed value. On a $576,500 median-priced home, that equals roughly $10,469 in annual property taxes. This is significantly higher than what most Massachusetts homeowners pay on an equivalent home.
Among commonly considered commuter towns, Portsmouth has one of the lowest rates at $11.51 per $1,000 (2024 certified). However, Portsmouth home prices average around $720,000, so your total annual tax bill may still be comparable to higher-rate towns with lower home values. Do the math with the actual home price you are considering.
From Salem NH to Boston by car: off-peak around 25 to 40 minutes, peak-hour 40 to 70 or more minutes on I-93. From Nashua and Londonderry, add 10 to 20 minutes. Real commuters report two to four hours of total daily drive time in heavy traffic. The Boston Express bus from Salem NH, Londonderry, and Nashua offers a more predictable option.
Exeter, NH has Amtrak Downeaster service with roughly five trains daily each direction to North Station, taking about 70 minutes. Southern NH towns like Salem, Londonderry, Derry, Nashua, and Manchester have no MBTA commuter rail. Some NH residents drive south to Haverhill or Lawrence to catch the MBTA — this is not ideal but is a real strategy some commuters use.
Massachusetts consistently ranks first or second nationally in NAEP scores. New Hampshire scores above the national average in raw numbers but falls to near the bottom of state rankings when results are adjusted for student demographics. Quality varies significantly by town: Portsmouth is exceptional (10/10 on GreatSchools), Londonderry and Exeter are strong, while other districts are closer to average.
It depends entirely on the specific town. In Portsmouth or Exeter, the schools are excellent. In some other NH districts, outcomes are closer to average. Massachusetts has more consistently strong districts across the board. Research the specific district — not just the state — before deciding, and visit the schools if education is a primary factor.
Boston Express is a coach bus service connecting southern NH to downtown Boston and Logan Airport. Stops include Salem NH Transportation Center (Exit 2 off I-93), North Londonderry Transportation Center (Exit 5), and Nashua (Exit 8). Buses run frequently during peak commute hours and offer a more comfortable and predictable ride than driving I-93 in traffic.
Remote workers benefit most from the NH equation. No income tax, no sales tax, lower home prices than comparable MA communities, and genuine outdoor access within 30 minutes of almost anywhere in the state. Without a daily commute, the I-93 congestion issue disappears entirely, and NH becomes one of the most financially favorable options in New England.
For most middle-income households, NH is modestly less expensive overall. The savings on income tax and shopping are real. However, higher property taxes offset a significant portion, and healthcare premiums can vary depending on plan availability. The net savings depends on your income level, home value, and how frequently you make large purchases. Do the full calculation for your specific situation.
Major medical centers are concentrated in Manchester and Nashua. Rural NH hospitals have faced funding pressures as federal rural healthcare programs are examined and adjusted. For specialized care, many NH residents travel to Boston or North Shore MA. If you or a family member has complex ongoing medical needs, proximity to Boston's teaching hospitals is a real factor to weigh.
Southern NH is more spread out, more car-dependent, and more outdoors-oriented than suburban Massachusetts. Lots are larger, yards are bigger, and the White Mountains, Lake Winnipesaukee, and dozens of state parks are a short drive away. Towns feel less dense and there is a strong sense of local independence. The trade-off is less walkability, fewer walkable downtowns (Portsmouth is the clear exception), and a smaller concentrated arts and dining scene than Boston's inner suburbs.
Salem NH is the most popular entry point for MA residents crossing the border. It sits right on I-93 with excellent highway access, has strong retail and commercial development, and had a median home price of approximately $576,500 in early 2026. The trade-off is one of the higher property tax rates in the region at $18.16 per $1,000, and a more commercial than residential character in many parts of town.
Londonderry is one of the most sought-after family towns in southern NH. It has its own school district, strong community feel, larger lots, and a median home price around $583,900. The 2025 tax rate was $14.47 per $1,000 after a town-wide revaluation, making it one of the better tax value stories in the region. It is best suited for families with cars and either no daily Boston commute or a willingness to use the Boston Express bus.
Portsmouth is the most walkable, culturally rich, and livable city in NH — and priced accordingly, with a median around $720,000. Its school system earns a 10 out of 10 on GreatSchools. The property tax rate is $11.51 per $1,000 — one of the lowest in the state. Portsmouth is for buyers who want quality of place and are willing to pay for it.
Exeter is a charming small city with a population around 10,300, a historic downtown, and Amtrak Downeaster service to North Station. Median home prices were around $540,000 in early 2026. The 2025 tax rate was $18.76 per $1,000. The train access is a real differentiator from almost every other southern NH town and justifies the premium for commuters who can work around train schedules.
Yes — NH has no sales tax on clothing, furniture, electronics, appliances, lumber, and most goods. For households that make large purchases regularly, this adds up to hundreds or even thousands of dollars per year in real savings. Many MA residents already cross the border specifically for major purchases like cars, appliances, and furniture. Once you live there, every purchase benefits.
The most common surprises: the property tax bill is higher than expected when the first assessment arrives; the commute is longer and more variable than the off-peak drive made it seem; and the sense of distance from Boston — for restaurants, healthcare, family, events — feels more pronounced after the move than before it. None of these are reasons not to move. They are reasons to go in with clear eyes and a plan for how your daily life will actually work.
Call or text Lisa Sevajian at 978-457-3406. Lisa is licensed in both Massachusetts and New Hampshire and has spent over 20 years working the Merrimack Valley and southern NH markets. She can show you homes on both sides of the border, run tax calculations side by side, and help you understand what your budget actually buys in each town before you commit to either one.
Written by Lisa Sevajian, a licensed Massachusetts and New Hampshire Realtor with over 20 years of direct experience in these markets. All pricing ranges reflect general market conditions as of spring 2026 and are not guarantees of any specific property value. Property tax rates reflect 2024–2025 NH DRA certified rates and may change annually.
I am licensed on both sides of the border and have helped families navigate this exact decision for over 20 years. Let me show you what your budget actually buys — in NH and in Massachusetts — so you can decide with real information.