Updated October 5, 2026. Quick answer: No. New Hampshire has no state tax on trust income for 2025 and later periods, because the Department of Revenue Administration says that for taxable periods “beginning after December 31, 2024, the I&D Tax has been repealed”. The repealed tax applied to interest and dividends, and the documents read describe no replacement income tax on trusts.
How New Hampshire treats trust income
| Item | What the documents say |
|---|---|
| Treatment | The Department’s Taxes at a Glance page says the Interest and Dividends Tax is “repealed for taxable periods beginning after December 31, 2024”. The page does not mention trusts. |
| Where the repeal is written | The New Hampshire statutes page for Chapter 77, Taxation of Incomes, shows the whole chapter repealed, with the history note “Repealed by 2021, 91:99, II, eff. Jan. 1, 2025.” |
| Who was taxed before repeal | The 2024 instructions covered entities with non-transferable shares that had a usual place of business in the state, when gross interest and dividend income exceeded $2,400 and any partner, “trustee, member or owner is an inhabitant or resident of New Hampshire”. The text read does not set out a separate resident trust test for ordinary trusts. |
| Rate on trust income | The last year of the tax was 2024, and the instructions say the interest and dividends “tax rate has changed to 3% for 2024”. No rate applies to 2025 periods because the tax was repealed. |
| Distribution deduction | The instructions state no distribution deduction for trusts, and they say income taxed federally to a trust beneficiary shall be “included as interest or dividends in the return of such beneficiary”. The instructions limit that rule to a beneficiary who is an individual inhabitant or resident of New Hampshire. |
| Grantor trusts | For earlier periods, the instructions said income received by grantor trusts was to be “included in the return of their grantor”. The instructions limit that rule to a grantor who is an inhabitant or resident of New Hampshire. |
| Nonresident trusts | The documents read contain no separate rule for nonresident trusts, and no tax applies to periods beginning after December 31, 2024. |
| Return to file | The Department says no 2025 return exists because taxpayers “will not be required to file a 2025 I&D Tax return”. Returns for 2024 and earlier years still had to be filed by the statutory due date. |
| Earlier tax years | The Department says taxable periods beginning on or prior to December 31, 2024 shall “remain subject to audit and collection by the Department”. The same release says the repeal does not provide amnesty for pre-repeal tax years. |
A $10,000 example
A trust with $10,000 of taxable income owes $0 of New Hampshire income tax on it. Federal tax on the trust’s income still applies.
A trust with ties to another state also has to check that state’s own rules, because each state sets its own test for taxing a trust.
What changes in 2026
The Department published no 2026 change; the repeal took effect for taxable periods beginning after December 31, 2024, and no 2025 return is required.
Federal rules
The state’s treatment sits on top of the federal one. The federal brackets a trust faces are laid out in trust tax brackets versus individual brackets, and capital gains that a trust keeps are covered in capital gains stay in the trust. The IRS explains the federal return in the About Form 1041 page.
Related: how New Hampshire taxes retirement income, whether New Hampshire taxes pensions, what a living trust costs in New Hampshire, and federal trust tax brackets.
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Answer againSources
- Technical Information Release TIR 2025-001, Interest and Dividends Tax Repealed Effective January 1, 2025 (NH Department of Revenue Administration): https://www.revenue.nh.gov/sites/g/files/ehbemt736/files/documents/2025-001-technical-information-release-repeal.pdf
- 2024 DP-10 Interest and Dividends Tax Return General Instructions, Version 2 11/2024 (NH Department of Revenue Administration): https://www.revenue.nh.gov/sites/g/files/ehbemt736/files/documents/dp-10-instructions-2024.pdf
- Interest & Dividends Tax, Taxes at a Glance (NH Department of Revenue Administration): https://www.revenue.nh.gov/taxes-glance/interest-dividends-tax
- New Hampshire Revised Statutes, Chapter 77, Taxation of Incomes (New Hampshire General Court): https://gc.nh.gov/rsa/html/V/77/77-mrg.htm
Sources: the primary documents linked above, read on October 5, 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.