New Hampshire is a study in tax contrasts — the lack of broad-based income or sales taxes gives it the lowest overall tax burden in the nation, but the property tax burden is the country’s third highest. The only other state without a state income tax or a statewide sales tax is Alaska, said Gerald Prante, a senior economist at the Tax Foundation, a nonpartisan tax research group.
“New Hampshire is an oddball in the Northeast,” he added. “They’re just a low-tax state in general, and in New England, it’s an anomaly.”
The property tax here is allocated toward local government and schools, as well as a state education fund. The state taxes various things, including meals and rooms, business profits and personal dividends. That revenue goes into the state budget.