Living in New Hampshire-The Complete Guide to Cost of Living and Lifestyle

The Complete Guide to Cost of Living and Lifestyle

New Hampshire living offers a unique value proposition with no state income tax, low property taxes relative to some contexts, and unparalleled access to New England’s natural beauty. The Granite State attracts everyone from outdoor enthusiasts and remote workers to families seeking an affordable, high-quality life. However, sacrifices are made, including higher heating costs and limited public transportation. Our comprehensive living in New Hampshire guide covers housing prices, taxes, daily expenses, and lifestyle factors to help you decide if NH is your next home.

Key Takeaways

  1. No State Income Tax: A lack of general state income tax provides significant savings for working professionals and retirees alike, though property taxes are higher than the national average to compensate.
  2. Affordable Housing: Their housing market offers desirable value compared to neighboring states, with median home prices below Massachusetts but varying significantly between southern and northern regions.
  3. High Everyday Costs: While housing is reasonable compared to nearby states, other expenses including utilities (due to harsh winters), groceries, and healthcare often meet or exceed national averages, impacting the overall budget.
  4. Lifestyle Trade-Off: The benefits of tax advantages, excellent schools, and outdoor access are balanced against higher heating costs, limited public transit, and geographic isolation in rural areas.
  5. Community is Key: Strong sense of community and commitment to local governance are intangible benefits greatly enhancing quality of life for those who embrace the New Hampshire way of life.

I. Methodology: How We Analyzed the Cost of Living

Our analysis is based on a multi-factor review of key elements that impact residents’ financial well-being and daily life. We compiled data from reputable 2025 sources, including the U.S. Census Bureau, Bureau of Labor Statistics, Zillow housing market reports, Tax Foundation, and local New Hampshire state agencies.

Our evaluation criteria are weighted as follows:

  1. Housing & Affordability (30%): The largest budget item. We analyze median home prices, rental costs, and property taxes, using ratios like home-price-to-income to gauge true accessibility.
  2. Daily Living Expenses (25%): This metric evaluates costs defining a daily budget, including groceries, utilities, transportation, and healthcare, benchmarked against national averages.
  3. Tax Burden (20%): A crucial component of affordability. We assess impacts of state income, sales, and property taxes on overall financial planning for both workers and retirees.
  4. Income & Economic Context (15%): Affordability is relative to earnings. We examine median household incomes and economic stability to provide context for the cost data.
  5. Lifestyle Value (10%): We evaluate the intangible ROI of living in New Hampshire, considering access to nature, outdoor recreation, and community amenities that offset monetary costs.
Our Methodologies to create HOMEiA Score Ratings for Each Group of Content

Related article

Our Methodologies to create HOMEiA Score Ratings for Each Group of Content

HOMEiA uses a consistent, data-driven methodology to evaluate U.S. states for livability, affordability, and long-term value. Our analysis centers on key factors such as Housing and Affordability, Cost of Daily Living, Access and Infrastructure, Community Strength, Safety and Quality of Life, Economic Resilience and Job Market Performance…

II. Detailed Community Analysis

1. New Hampshire Housing Costs: Navigating a Varied Market

New Hampshire Housing Costs: Navigating a Varied Market

New Hampshire’s housing market offers relative affordability relative to its New England neighbors. Expenditures are significantly lower than Massachusetts but vary dramatically between southern suburbs and northern rural areas.

A. Major New Hampshire Cities Housing Costs

City

Median Home Price

Avg. Rent (2-Bedroom)

Home Price to Income Ratio

Income to Rent Ratio

Safety Rating 

Berlin~$185,000$900 – $1,100~2.3:1~35x76/100
Keene~$295,000$1,200 – $1,400~3.4:1~39x87/100
Concord~$360,000$1,400 – $1,600~3.9:1~41x85/100
Manchester~$348,500$1,600 – $1,800~4.0:1~43x78/100
Nashua~$425,900$1,700 – $1,900~4.5:1~44x82/100
Dover~$425,000$1,800 – $2,000~4.6:1~45x84/100
Portsmouth~$641,000$2,000 – $2,200~6.1:1~48x88/100

Median home prices reflect 2025 reported data; Portsmouth is considerably higher, consistent with coastal market inflation.

B. New Hampshire Housing Strategies and Financial Options: Financing a home is straightforward, with widely accepted FHA, VA, and conventional loans. However, first-time homebuyers should pay special attention to energy efficiency. Older New England homes can be costly to heat in the winter, while newer construction often means better insulation. Thorough inspections are critical, especially for homes with oil heat systems.

2. New Hampshire Tax Structure: A Mixed Picture

New Hampshire Tax Structure: A Mixed Picture

A. New Hampshire State Taxes Overview: This tax structure is unique and highly favorable for certain residents. There is no general income tax on wages and salaries or sales tax, making it one of the most tax-friendly states in the country. However, it does tax interest and dividend income at 5%, and property taxes are among the highest in the nation to compensate for the lack of other revenue sources.

B. Tax Comparison: New Hampshire vs. Other States

Tax Type

New Hampshire

Massachusetts

Vermont

Maine

National Avg. 

State Income Tax0%5.0%3.35%-8.75%5.8%-7.15%~5.1%
State Sales Tax0%6.25%6.0%5.5%~6.35%
Avg. Property Tax2.05%1.23%1.86%1.36%1.07%
Interest/Dividend Tax5%5.0%0%0%N/A

Property tax rates reflect effective rates and remain among the highest nationally.

The Pros and Cons of Living in New Hampshire

Related article

The Pros and Cons of Living in New Hampshire

New Hampshire blends colonial charm, outdoor adventure, and low taxes with strong community life. But it also brings harsh winters, high housing costs, and limited transit. This guide breaks down the key pros and cons of living in the Granite State and highlights its top cities for professionals, families, and retirees.

3. Daily Living Expenses in New Hampshire

Daily Living Expenses in New Hampshire

NH’s overall cost of living is roughly 12% above the national average, but daily expenses tell a more nuanced story.

A. Monthly Living Costs Breakdown

Expense Category

New Hampshire Cost

National Comparison 

Groceries (per person)$350-$400/month10%-15% above average
Utilities (Monthly)$250-$400/month15%-25% above average (seasonal spike)
Gasoline~$3.01 – $3.40/gallonNear national average
Healthcare (individual)$450-$550/month5%-10% above average
Internet$70-$100/monthNear national average

*Gasoline prices vary by source with recent averages near $3.01 in mid-2025 and $3.40 comparable elsewhere.

B. Cost-Saving Strategies for New Hampshire Living

Smart New Hampshirites mitigate high costs through:

Energy Efficiency: Investing in modern heating systems, proper insulation, and energy-efficient windows to combat harsh winters.

Buying Local: Purchasing produce at farmers’ markets and supporting local farms for meat and dairy products.

Shopping Smart: Taking advantage of no sales tax by making major purchases in-state and using warehouse clubs for bulk items.

Utilizing the Outdoors: Low-cost recreation, notably hiking, skiing (with season passes), and lake activities replaces expensive entertainment.

Recommended for you

4. Family Life in New Hampshire: Education and Community

Family Life in New Hampshire: Education and Community

New Hampshire offers pristine family life with cherished community bonds and some of the nation’s best educational opportunities.

A. Education in New Hampshire: School quality is consistently high across the state. Public education often ranks among the top in national evaluations, with particularly standout performance in southern communities like Bedford and Amherst. There also exist robust school choice options, including charter schools and a growing homeschooling community. Higher education includes prestigious institutions like the Ivy League member Dartmouth or universities in the  UNH system.

B. Childcare and Family Costs

Family Expense

New Hampshire Cost

Available Support 

Childcare (Monthly)$1,200-$1,500/monthLimited state assistance programs
Youth Sports$150-$350/seasonCommunity leagues are well-organized
4-H & Outdoor ProgramsVariesVery accessible and popular in rural areas

Childcare costs are high and availability is limited, according to recent state fiscal data.

5. New Hampshire Transportation: A Car-Dependent State

New Hampshire Transportation: A Car-Dependent State

Transportation is primarily car-based, with necessary budget considerations for vehicle maintenance and fuel.

A. Vehicle-Related Expenses

Transportation Cost

New Hampshire Average

National Comparison 

Auto Insurance$1,200-$1,500/yearSlightly below average
Gas Prices~$3.01-$3.40/gallonNear national average
Vehicle Registration$60-$120/yearBased on vehicle weight & year
Annual Mileage~11,000 milesNear average with seasonal variation


B. Public Transit and Air Travel

Southern NH: Has limited commuter rail service to Boston and local bus systems in larger cities.

Other Areas: Offer minimal or no public transit options.

Air Travel: Essential for regional and international travel. Manchester-Boston Regional Airport (MHT) is the primary hub, with Boston Logan (BOS) accessible for additional options.

Moving to New Hampshire: The Complete Relocation Guide & Checklist

Related article

Moving to New Hampshire: The Complete Relocation Guide & Checklist

New Hampshire’s 1.4 million residents enjoy natural beauty, safety, and no income tax. From the White Mountains to the Seacoast, the state blends independence, community, and strong economic opportunity. This guide outlines key relocation essentials, including climate preparation, the tax structure, and the steps to establish residency in the Granite State.

6. New Hampshire Job Market and Income Potential

New Hampshire Job Market and Income Potential

Economic performance is diverse and generally strong, with incomes reflecting the state’s educated workforce.

A. Income Statistics and Employment

Income Metric

New Hampshire

National Average 

Minimum Wage$7.25/hour$7.25/hour
Median Household Income$95,682~$78,538
Unemployment Rate~2.8%~3.9%

Median household income is higher than the national average.

B. Major New Hampshire Employers and Industries

Industry

Key Companies/Employers

Typical Salary Range 

HealthcareDartmouth-Hitchcock, Elliot Health System$55,000 – $130,000/year
TechnologyBAE Systems, DEKA, Liberty Mutual$65,000 – $150,000/year
EducationUNH System, Public Schools$45,000 – $85,000/year
ManufacturingTimberland, Velcro USA$50,000 – $90,000/year
Tourism & HospitalityVarious ski resorts, hotels$30,000 – $55,000/year

 

7. Cost of Living Comparison: New Hampshire vs. Other States

Cost of Living Comparison: New Hampshire vs. Other States

Expense Category

New Hampshire

Massachusetts

Vermont

Maine 

Median Home Price$415,000$580,000$335,000$365,000
Rent (2-Bedroom)$1,600$2,300$1,400$1,500
Gas Price/Gallon$3.40$3.60$3.45$3.35
Utilities (Monthly)$280$250$270$260

New Hampshire offers lower home prices and rent than Massachusetts but is more expensive in utilities compared to the others.

7 Most Affordable Places to Live in New Hampshire

Related article

7 Most Affordable Places to Live in New Hampshire

New Hampshire offers a rare blend of affordability, natural beauty, and tax advantages, with lower home prices and no income or sales tax. Since costs vary by community, choosing the right town is essential. This guide analyzes seven of the most budget-friendly areas to help residents achieve financial stability and New England charm…

8. New Hampshire Lifestyle: The Ultimate Trade-Off

New Hampshire Lifestyle: The Ultimate Trade-Off

An authentic lifestyle combines tax advantages with high quality of life: no income or sales tax, excellent schools, and endless outdoor recreation. These benefits are balanced against higher property taxes, significant heating costs, and geographic isolation in northern areas.

A. Lifestyle Advantages of New Hampshire Living: The ability to enjoy four-season outdoor activities, access to Boston amenities while living in a lower-cost state, and strengthened community values provide a quality of life that is difficult to quantify but deeply appreciated by residents.

B. New Hampshire Living Challenges: This state’s relatively high property taxes and heating costs are the most significant hurdles. Access to specialized healthcare can require travel to Boston, and rural internet connectivity remains an issue in some areas.

9. Best Places to Live in New Hampshire for Different Needs

Best Places to Live in New Hampshire for Different Needs

A. Family-Friendly New Hampshire Communities

Community Type

Best Cities

Median Home Price

Key Benefits 

Urban FamilyBedford$550,000Top schools, amenities, near Manchester jobs
Affordable FamilyConcord$360,000Exceptional schools, state capital, central location
Rural FamilyHanover$682,100#1 schools, Ivy League college, highest safety

Hanover remains the most expensive and highest-income community, consistent with recent 2025 data.

B. Professional and Retiree Options

Manchester provides the most diverse corporate and healthcare job opportunities in the state.

Portsmouth offers a vibrant coastal lifestyle with exceptional tourism and service industries.

Nashua serves as a tech and manufacturing hub with proximity to Boston.

The Lakes Region and White Mountains are premier retirement destinations for their natural beauty and outdoor recreation.

Conclusion: Making New Hampshire Living Work for You

Success depends on choosing the right location for your budget and career, preparing for the climate, and embracing a community-oriented mindset. While the tax advantages are significant, strategic financial planning—especially for property taxes and heating costs—is vital. For those drawn by outdoor adventure, educational excellence, and financial benefits, New Hampshire offers a rewarding lifestyle balancing New England charm with modern convenience. For a comparison with another New England state, explore our guide on the best places to live in Massachusetts.

Recommended for you

Frequently Asked Questions About Living in New Hampshire

1. What is a comfortable salary to live in New Hampshire?

A single person can live comfortably on a yearly salary of $55,000-$65,000. Families of four typically need a combined income of around $85,000 or more to cover housing, groceries, utilities, and transportation confidently, especially in expensive southern communities.

2. Is New Hampshire a tax-friendly state for retirees?

Yes, very. New Hampshire is exceptionally tax-friendly for retirees. It has no state income tax on wages and no sales tax. Social Security benefits and most retirement income are not taxed. However, income from interest and dividends is taxed at 5%, and property taxes are high, so retirees should budget accordingly.

3. How do people afford heating costs in New Hampshire?

New Hampshirites afford heating costs by investing in energy-efficient homes, using programmable thermostats, taking advantage of bulk fuel oil pricing, and utilizing wood stoves or pellet stoves as supplemental heat sources. Many also participate in budget payment plans with utility companies.

4. Is healthcare more expensive in New Hampshire?

Healthcare costs are generally at or slightly above the national average. Southern New Hampshire has exceptional medical facilities with easy access to Boston’s world-class hospitals, but specialized care in northern areas may require travel to larger medical centers.

5. What are the biggest hidden costs?

Hidden costs to watch out for are property taxes (among the highest in the nation), heating costs (especially with oil heat), vehicle maintenance (due to road salt and winter conditions), and higher-than-average grocery bills in rural areas.

6. Is New Hampshire a good place to retire?

It can be an ideal place to retire for the right person. The tax advantages, natural beauty, and high quality of life are enticing. However, retirees must carefully consider their heating budget and choose a location with adequate medical access, particularly in the northern regions.

If considering other relocation options, you might explore the pros and cons of living in Tennessee, discover the best places to live in Colorado, or learn about moving to Florida. For those interested in different regions, check out our guides on the pros and cons of living in California, best places to live in Texas, or pros and cons of living in Arizona. If you’re considering retirement destinations, explore the best places to retire in Florida or best places to retire in the US.