Barbara, 63, lives in Concord and recently rolled over a 401(k) into a multi-year guaranteed annuity to lock in a guaranteed rate for five years without market volatility risk. New Hampshire is one of only nine states with zero income tax, effective January 1, 2025, the Interest & Dividends Tax was fully eliminated, meaning every dollar Barbara withdraws from her annuity is 100% state-tax-free.
Rates shown are for informational purposes only and subject to change without notice. Products marked SI use simple interest, effective compound yield is lower than the stated rate. Minimum premiums shown are for non-qualified (after-tax) funds. Always verify current rates with a licensed annuity professional before purchasing.
- Zero state income tax: New Hampshire fully eliminated its Interest & Dividends Tax on January 1, 2025, annuity withdrawals face no state income tax whatsoever.
- Guaranty protection up to $250,000: The New Hampshire Life and Health Insurance Guaranty Association covers annuity contracts up to $250,000 per insurer, lower than some states, so splitting large deposits across carriers is smart.
- No pension deduction needed: Because NH has no income tax, there is no need for retirement income exclusions, every distribution is already tax-free at the state level.
- 1.25% premium tax built in: New Hampshire charges a 1.25% premium tax on annuity premiums, which is among the lowest in the country, carriers build this into pricing, so it doesn’t appear as a line item to buyers.
- Strong carrier competition: NH’s regulatory environment attracts a broad range of A-rated carriers, giving buyers solid rate competition on 3-, 5-, and 7-year MYGAs.
New Hampshire Department of Insurance
The New Hampshire Insurance Department licenses all annuity carriers and agents operating in the state and investigates consumer complaints. If you ever have a question about a carrier’s authorization or a contract dispute, they are your first call.
| Contact | Details |
|---|---|
| Agency | New Hampshire Insurance Department |
| Consumer helpline | 1-800-852-3416 |
| Website | insurance.nh.gov |
| License verification | insurance.nh.gov/ins/producer-licensing (search by name or license number) |
How New Hampshire Taxes Annuity Income
New Hampshire has no broad-based personal income tax, and as of January 1, 2025, the final remnant, the Interest & Dividends Tax, has been repealed. Annuity income of every type is completely exempt from state taxation.
| Annuity Type | New Hampshire Tax Treatment | State Rate |
|---|---|---|
| MYGA / Fixed Annuity distributions | Not taxed | 0% |
| Interest earnings (non-qualified) | Not taxed (I&D Tax repealed Jan 1, 2025) | 0% |
| IRA / 401(k) annuity distributions | Not taxed | 0% |
| Social Security benefits | Not taxed | 0% |
Tips for Buying an Annuity in New Hampshire
- Use the tax advantage to its fullest: Because NH imposes zero state income tax, non-qualified annuity interest compounds and distributes completely free of state tax. That makes a MYGA especially efficient here, you’re only dealing with federal taxes, not a second layer of state withholding.
- Split large deposits across carriers: NH’s guaranty limit is $250,000 per insurer, not per contract. If you’re deploying $400,000 or more, spread the money across two A-rated carriers to stay fully protected. Learn more about state guaranty association limits before you finalize your strategy.
- Verify your agent’s license before signing: Use the NH Insurance Department’s online lookup at insurance.nh.gov to confirm any agent you work with holds a valid NH license. This takes two minutes and is non-negotiable.
- Compare fixed annuity rates across multiple terms: NH’s competitive market means the spread between 3-year and 5-year rates can be significant. Run the numbers on both before committing, sometimes a 3-year ladder beats a 5-year single contract.
- Understand your free-look period: New Hampshire requires a minimum 10-day free-look period on annuity contracts, some carriers offer 30 days. Read how to buy an annuity for a full breakdown of what to review before that window closes. Ready to compare rates? Request a personalized annuity quote from our licensed team.
Frequently Asked Questions
Does New Hampshire tax annuity withdrawals?
No. New Hampshire has no personal income tax, and the Interest & Dividends Tax, the last remaining tax on passive income, was fully repealed effective January 1, 2025. Whether you withdraw from a qualified IRA annuity or a non-qualified contract, you owe zero state income tax on those distributions.
What is the guaranty association limit in New Hampshire?
The New Hampshire Life and Health Insurance Guaranty Association protects annuity contracts up to $250,000 per insurer if a carrier becomes insolvent. This is the standard limit in most states. If you plan to deposit more than $250,000, use two or more A-rated carriers to maintain full coverage under the state guaranty program.
Is a MYGA a good choice for New Hampshire residents?
Yes, especially for non-qualified money. A MYGA locks in a fixed interest rate for a set term (typically 3–7 years) with no market risk. In NH, interest compounds and distributes without any state tax layer, making the effective after-tax yield higher than in most other states. For retirees who want predictability, a MYGA is a strong fit.
How do I verify an annuity agent is licensed in New Hampshire?
Visit insurance.nh.gov and use the producer license lookup tool. Enter the agent’s name or license number to confirm their license is active and that they are appointed to sell annuities in New Hampshire. Never sign a contract with an agent whose license you haven’t verified.
