Updated October 4, 2026. Quick answer: No. New Hampshire does not tax 401(k) or IRA withdrawals. The Department of Revenue Administration says the state “does not have an income tax on an individual’s reported W-2 wages”, and its only income-type tax, the Interest and Dividends Tax, was repealed: the Department says “the Interest and Dividends tax is repealed”. Federal tax on the withdrawal still applies.
Withdrawing from an IRA or 401(k)? Whether the state withholds tax from it, from its own documents: New Hampshire tax withholding on IRA and 401(k) withdrawals.
Taking money out of your TSP? How the state taxes it, from its own tax documents: Does New Hampshire tax TSP withdrawals?.
What New Hampshire does with 401(k) and IRA withdrawals
The Department’s announcement of the repeal says residents “are no longer required to pay the state’s Interest and Dividends Tax”. The statute chapter on the legislature’s site is marked “[Repealed by 2021, 91:99, II, eff. Jan. 1, 2025.]”. None of these documents names 401(k) or IRA withdrawals, so the answer follows from the state taxing neither wages nor any remaining income-type item.
| Item | What the documents say |
|---|---|
| Treatment | Not taxed by the state: no tax on wages, and the Interest and Dividends Tax is repealed |
| State rate on a withdrawal | None |
| Source | New Hampshire Department of Revenue Administration; RSA chapter 77 (repealed) |
A $40,000 withdrawal
A $40,000 withdrawal from a traditional 401(k) or IRA adds $0 of New Hampshire income tax. Your federal return still includes the withdrawal.
What changes in 2026
The Interest and Dividends Tax repeal took effect for periods beginning after December 31, 2024, so it is already behind 2026.
Federal rules
The state’s treatment sits on top of the federal one. The IRS explains the federal tax on these withdrawals in Publication 590-B, Distributions from Individual Retirement Arrangements and Publication 575, Pension and Annuity Income.
Related: whether New Hampshire taxes pensions, how New Hampshire taxes retirement income, whether New Hampshire taxes Roth conversions, and the state-by-state table of 401(k) and IRA withdrawal tax.
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Answer againSources
- Interest & Dividends Tax (Taxes at a Glance): https://www.revenue.nh.gov/taxes-glance/interest-and-dividends-tax
- Repeal of NH Interest and Dividends Tax Now in Effect (press release, Jan. 23, 2025): https://www.revenue.nh.gov/news-and-media/repeal-nh-interest-and-dividends-tax-now-effect
- Interest & Dividends Tax Frequently Asked Questions: https://www.revenue.nh.gov/resource-center/frequently-asked-questions/interest-dividends-tax-frequently-asked-questions
- RSA Chapter 77 (Taxation of Incomes): Chapter Repealed: https://www.gencourt.state.nh.us/rsa/html/V/77/77-mrg.htm
Sources: the primary documents linked above, read on October 4, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the plan administrator or the agency itself is the right place to confirm anything consequential.