Comprehensive guide to New Hampshire's no-income-tax advantage, veterans property tax credits, free college tuition for post-9/11 veterans, SCRA protections, and spouse licensing reciprocity.
Serving: Pease Air National Guard Base (Portsmouth) | NH Army National Guard (Concord)
New Hampshire has no general income tax on wages, salaries, or retirement income, meaning active duty military pay and military retirement are not taxed at the state level. This is a significant financial advantage for servicemembers and retirees choosing New Hampshire as their home of record.
Qualifying veterans receive a $500 property tax credit on their primary residence. Veterans with a total and permanent service-connected disability receive a $2,000 credit. Surviving spouses of qualifying veterans are also eligible for this credit.
New Hampshire offers free tuition at public colleges and universities for veterans who served after September 11, 2001, with at least 90 days of active duty service and an honorable discharge. This is a substantial benefit for veterans seeking higher education in the Granite State.
The full federal Servicemembers Civil Relief Act applies in New Hampshire, covering lease terminations, interest rate caps, civil court protections, and vehicle registration. JAG legal assistance at Pease ANGB can advise on specific questions.
New Hampshire allows military spouses with valid out-of-state professional licenses to obtain NH licensure on an expedited basis. This helps military families maintain employment continuity when PCSing to the Granite State.
New Hampshire supports the Uniformed and Overseas Citizens Absentee Voting Act. Servicemembers and their dependents can register and vote absentee in NH elections from anywhere in the world.
New Hampshire does not impose a general income tax on wages, salaries, or other earned income. This means that active duty military base pay, BAH, BAS, and all military special pays are not subject to New Hampshire state income tax. For servicemembers who claim New Hampshire as their legal domicile, this represents a substantial financial advantage over states that tax earned income. The absence of a general income tax makes New Hampshire particularly attractive as a home of record for career servicemembers and military retirees alike.
Because New Hampshire has no general income tax, military retirement pay is entirely free from state taxation. This applies to retired pay from all branches of service and to reserve component retirements. Retirees who establish New Hampshire as their domicile can receive their full retired pay without any state income tax withholding. Compared to states in the Northeast that do tax retirement income, the New Hampshire tax advantage compounds significantly over time for military retirees.
New Hampshire previously imposed a tax on interest and dividend income at a rate that has been stepping down annually. This tax is being phased out entirely, and once eliminated, New Hampshire will have no state-level income tax of any kind. Military members who also receive significant investment income, such as dividends from brokerage accounts, should consult a tax advisor to understand the current rate and any applicable exemptions during the phase-out period.
VA disability compensation is not taxed in New Hampshire. Because the state has no general income tax, VA disability payments are not subject to state taxation regardless of the rating level. This is consistent with federal law, which prohibits states from taxing VA disability compensation.
New Hampshire provides a property tax credit for qualifying veterans applied directly against the annual property tax bill on their primary residence. Most qualifying veterans receive a $500 credit. Veterans with a total and permanent service-connected disability receive a $2,000 credit. Surviving spouses of qualifying veterans are also eligible for the credit, provided they have not remarried. Applications are filed with the local municipality assessor, typically by a spring deadline for the upcoming tax year. Some municipalities offer enhanced credits above the state minimum under a local option provision.
New Hampshire does not impose a state estate tax or an inheritance tax. This makes New Hampshire one of the most favorable states in New England for estate planning purposes, and it benefits military retirees and veterans who wish to pass assets to heirs without an additional state-level tax burden.
New Hampshire offers free tuition at public colleges and universities for veterans who meet all three eligibility criteria: service after September 11, 2001; at least 90 days of active duty service; and an honorable discharge. Covered institutions include the University of New Hampshire System campuses, which include UNH Durham, Plymouth State University, Keene State College, and Granite State College, as well as the New Hampshire Community College System institutions. Applications for this benefit are processed through the New Hampshire Division of Veterans Services at 603-624-9230. Veterans should begin the application process well before their intended enrollment date to ensure timely processing.
Members of the New Hampshire National Guard may be eligible for state tuition assistance for coursework at New Hampshire public institutions. The benefit amount and eligible credit hours can vary based on legislative appropriations and Guard policies. Guard members should contact the NH National Guard Education Office at 603-225-1369 for current eligibility requirements, benefit amounts, application deadlines, and any service obligation requirements associated with receiving the benefit.
All University of New Hampshire System campuses and NH Community College System institutions are approved for VA GI Bill benefits. Veterans using the Post-9/11 GI Bill (Chapter 33) at New Hampshire public institutions may receive tuition and fees coverage, a monthly housing allowance calculated using the BAH rate for the school's zip code, and an annual books and supplies stipend. Veterans attending private New Hampshire institutions may also apply GI Bill benefits up to the applicable private school cap. The NH Division of Veterans Services can connect veterans with School Certifying Officials at their intended institution.
New Hampshire has enacted expedited professional license reciprocity for military spouses. If you hold a current and valid license from another state in a profession that is also regulated in New Hampshire, you can apply for a New Hampshire license on an expedited basis. In most cases, this process does not require retaking licensing examinations or completing additional education or training programs. The expedited process covers a broad range of regulated professions including healthcare providers, educators, attorneys, engineers, and skilled trades. Contact the NH Department of Labor at 603-271-3176 or the specific NH licensing board for your profession to begin the application process.
Active duty servicemembers who receive PCS orders or deployment orders for a period of 90 days or more have the federal right to terminate a residential lease under the Servicemembers Civil Relief Act. To exercise this right in New Hampshire, you must deliver written notice of termination and a copy of your military orders to your landlord. Termination becomes effective 30 days after the next rent due date following the notice. New Hampshire landlords are prohibited under federal law from charging early termination penalties or taking adverse action against servicemembers who exercise their SCRA lease termination rights.
Servicemembers on active duty are entitled to a cap of 6% interest per year on debts incurred before the start of active duty service. This applies to credit cards, auto loans, mortgages, student loans, and other pre-service obligations. To invoke the cap, provide your lender with a written request and a copy of your active duty orders. The lender must apply the 6% rate retroactively from the date active duty began, and the difference between the contractual rate and 6% is forgiven, not deferred.
Servicemembers who cannot appear in civil court proceedings due to military duties may request a stay of proceedings. Courts may grant mandatory or discretionary stays depending on the circumstances. The SCRA also requires courts to appoint an attorney for servicemembers before entering a default judgment against them, and it restricts certain eviction proceedings against servicemembers and their dependents occupying a residential property.
New Hampshire supports the Uniformed and Overseas Citizens Absentee Voting Act for all federal elections and state elections. Servicemembers, their qualified dependents, and overseas citizens can register to vote and request absentee ballots regardless of current duty station. New Hampshire is required to transmit absentee ballots to UOCAVA voters at least 45 days before federal elections. The Federal Voting Assistance Program website at vote.gov provides the Federal Post Card Application and Federal Write-In Absentee Ballot for use by New Hampshire UOCAVA voters.
New Hampshire allows servicemembers to maintain vehicle registration in their home state while stationed elsewhere, consistent with the SCRA's protections related to taxes and fees. Servicemembers who choose to register vehicles in New Hampshire while stationed there are not penalized for late registration that results from deployment. Questions about specific vehicle registration situations should be directed to NH DMV Military Services at 603-227-4000.
New Hampshire does not currently provide additional state-level SCRA enhancements beyond the federal statute. Servicemembers stationed at Pease ANGB or elsewhere in New Hampshire who have questions about their legal rights should contact the JAG legal assistance office at Pease ANGB at 603-430-2174. JAG attorneys provide free civil legal assistance to servicemembers and their families on issues including landlord-tenant disputes, consumer protection, family law, and powers of attorney.
School Liaison Officers assist military families navigating school enrollment, special education services, extracurricular eligibility, and the challenges of transitioning students between school systems. Reach out to the SLO before or immediately upon arrival for the smoothest possible transition for your children.
Supports military families with school enrollment, special education coordination, and transitions for children PCSing to the Portsmouth and Seacoast New Hampshire area.
No state income tax on military pay and strong veteran benefits make New Hampshire one of the most financially favorable states for military families. Our verified agents know the Seacoast area and Pease ANGB community.
Start Your PCS PlanNo. New Hampshire has no general income tax on wages or salaries, which means active duty military pay is not taxed at the state level. New Hampshire only taxes interest and dividend income, and that tax is being phased out. Servicemembers do not owe NH income tax on their military base pay, allowances, or special pays.
New Hampshire offers a $500 property tax credit for qualifying veterans on their primary residence. Veterans with a total and permanent service-connected disability receive a $2,000 credit. Surviving spouses of qualifying veterans may also receive the credit. Credits are applied against the annual property tax bill.
No. Because New Hampshire has no general income tax on wages or retirement income, military retirement pay is not subject to state income tax. This makes New Hampshire one of the most financially favorable states for military retirees.
Yes. New Hampshire offers free tuition at NH public colleges and universities for veterans who served after September 11, 2001, completed at least 90 days of active duty service, and were honorably discharged. This benefit covers tuition at USNH system institutions and certain community colleges.
The full federal Servicemembers Civil Relief Act applies in New Hampshire. This includes the right to terminate a residential lease with 30 days notice and a copy of PCS or deployment orders, a 6% interest rate cap on pre-service debts, civil court protections, and more. JAG legal assistance at Pease ANGB can advise on specific situations.
Yes. New Hampshire has enacted professional license reciprocity for military spouses. If you hold a valid license from another state in a regulated profession, you can apply for a New Hampshire license on an expedited basis without having to retake exams or complete additional education requirements in most cases. Contact the NH Dept of Labor for your specific profession.