Updated October 7, 2026. Quick answer: No. The 2023 budget law moved the repeal of the interest and dividends tax, the only state tax on individual income the documents read describe, to “taxable periods beginning after December 31”, 2024, and the Governor’s budget summary speaks of a budget “without an income tax, without a sales tax”.
New Hampshire withholding at a glance
| Item | What the documents say |
|---|---|
| Is it required? | No. The interest and dividends tax is repealed for taxable periods beginning after December 31, 2024 |
| Rate or amount | No rate applies after the repeal |
| How to start or stop it | Nothing to file: the documents read name no New Hampshire withholding form |
| Direct rollover | The documents read are silent on it; with no New Hampshire income tax described, there is no New Hampshire withholding to avoid |
| Changed for 2026? | The interest and dividends tax no longer applies for taxable periods beginning after December 31, 2024 |
What the New Hampshire documents say
The Governor’s Executive Budget Summary for fiscal years 2024 and 2025 says the budget is accomplished “without an income tax, without a sales tax”, without an estate tax and without high business taxes. The one tax on individual income that the law read describes is the interest and dividends tax under RSA 77.
The 2023 budget law, HB 2 (chapter 79), amends the repeal’s application so that it takes effect for “taxable periods beginning after December 31”, 2024. A summary in the same law describes the change as “repeal of the interest and dividends tax from 2027 to 2025”.
A $50,000 withdrawal: cash in hand or a direct rollover
Take a $50,000 401(k) withdrawal paid to you. The IRS says a taxable eligible rollover distribution paid to you from an employer plan is subject to “mandatory income tax withholding (generally at a rate of 20%)”, which on $50,000 is $10,000 (computed as $50,000 times 20%) held back for federal tax. New Hampshire’s interest and dividends tax no longer applies after 2024, so nothing is held back for New Hampshire: the New Hampshire amount withheld is $0.
The other path is a direct rollover to an IRA or another plan. For federal tax the IRS says “The mandatory withholding doesn’t apply in a direct rollover”. A direct rollover therefore has no New Hampshire withholding to avoid.
What the documents do not say
- The Department of Revenue Administration’s own pages could not be archived, so the page rests on the budget law and the Governor’s budget summary, a policy document. The documents read say nothing on withholding forms or rollovers. The repeal applies to taxable periods beginning after December 31, 2024.
Common mistakes
- Treating the repealed interest and dividends tax as still due for earlier periods; the repeal read here covers only periods beginning after December 31, 2024.
- Expecting a withholding form for a tax that no longer applies.
Related: how New Hampshire taxes 401(k) and IRA withdrawals, New Hampshire retirement taxes, retirement withholding calculator, and retirement taxes by state.
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Answer againSources
- HB 2 Chapter 79, Laws of 2023 (Chapter Law): https://gc.nh.gov/lba/budget/operating_budgets/2024-2025/House_Finance/HB%202%20Chapter%20Law.pdf
- Governor’s Executive Budget Summary, FY 2024-2025: https://gc.nh.gov/LBA/Budget/operating_budgets/2024-2025/House_Finance/GovExecSummary_24-25.pdf
- IRS Tax Topic 413, Rollovers from retirement plans: https://www.irs.gov/taxtopics/tc413
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.