Updated October 7, 2026. Quick answer: No, on the documents read. The Department of Revenue Administration says the state “does not have an income tax on an individual’s reported W-2 wages”, and its Interest and Dividends Tax “is repealed for taxable periods beginning after December 31, 2024”. A TSP withdrawal is neither wages nor interest and dividends income.
New Hampshire TSP withdrawal tax treatment at a glance
| Item | What the documents say |
|---|---|
| TSP withdrawals | Not taxed by New Hampshire: the documents read describe no individual income tax that applies to a withdrawal |
| FERS annuity | The documents read do not treat a FERS annuity differently from a TSP withdrawal; with no individual income tax, neither is taxed by New Hampshire |
| Rate or limit printed | No rate: no individual income tax |
| Where it is reported | Nothing to report on a New Hampshire return |
| Source | New Hampshire Department of Revenue Administration |
What the New Hampshire documents say
The Department’s page on the Interest and Dividends Tax says the state “does not have an income tax on an individual’s reported W-2 wages” and that the I&D tax “is repealed for taxable periods beginning after December 31, 2024”. Its January 2025 notice says taxpayers are “no longer required to pay the state’s Interest and Dividends Tax”.
The Department’s pages name wages and interest and dividends only. They do not name retirement withdrawals or the Thrift Savings Plan, so this page reasons from the repeal and does not quote a line about the plan.
A worked example at $30,000 of withdrawals
An illustration, not a return: a New Hampshire resident who takes $30,000 from the TSP in 2026 owes $0 of New Hampshire individual income tax on it, on the documents read. Federal income tax still applies and is outside this page.
If you moved to New Hampshire or left it
The rules above are New Hampshire’s own, for a resident. Federal law limits what a state you have left may do: “No State may impose an income tax on any retirement income” of someone who is not a resident or domiciliary of that state, as 4 U.S.C. 114(a) puts it. The statute defines retirement income by reference to plans described in the Internal Revenue Code; this page does not decide whether a particular TSP payment meets that definition. If you moved during the year, check each state’s page and return. See CMG’s TSP withdrawal options and FERS, TSP and Social Security sequencing pages for the federal side.
What changes in 2026
New Hampshire: the Interest and Dividends Tax ended with periods after December 31, 2024; nothing further for 2026 in the documents read.
What the documents do not say
- The Department’s live site blocks scripted downloads, so both pages are archived copies of the Department’s own pages. They name wages and interest and dividends, not retirement withdrawals or the TSP.
Common mistakes
- Assuming the absence of a New Hampshire income tax removes the federal tax on a TSP withdrawal; it does not.
- Treating the old Interest and Dividends Tax as current; the Department says it is repealed for periods after December 31, 2024.
- Assuming the answer for one state applies to another, or that the state answer changes the federal tax on the withdrawal.
Related: TSP withdrawal options, state tax on TSP withdrawals, New Hampshire retirement taxes, how New Hampshire taxes pensions, and how New Hampshire taxes 401(k) and IRA withdrawals.
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Answer againSources
- Interest & Dividends Tax: https://web.archive.org/web/2025/https://www.revenue.nh.gov/taxes-glance/interest-dividends-tax
- Repeal of NH Interest and Dividends Tax Now in Effect: https://web.archive.org/web/2025/https://www.revenue.nh.gov/news-and-media/repeal-nh-interest-and-dividends-tax-now-effect
- 4 U.S.C. 114, Limitation on State income taxation of certain pension income (U.S. Code, GovInfo): https://www.govinfo.gov/content/pkg/USCODE-2023-title4/html/USCODE-2023-title4-chap4-sec114.htm
Sources: the primary documents linked above, read on October 7, 2026. General information, not tax advice. Your own facts decide the outcome, and a tax professional or the state agency itself is the right place to confirm anything consequential.