New Hampshire 529 plan: no state income tax, what counts in 2026
The interest and dividends tax ended with 2024, so in 2026 New Hampshire has no individual income tax of any kind.
In the 529 at age 18
$190,480
$13,467 more than the same money in a taxable account, plus $0 of New Hampshire tax saved along the way.
| You put in | $108,000 |
| Growth, tax-free for school costs | $82,480 |
| Taxable account after tax | $177,013 |
| New Hampshire tax saved, 18 years | $0 |
Taxable account: dividends taxed every year and the remaining gain taxed at sale, at the 2026 federal capital gains rate for this income, NIIT where it applies, and your state marginal rate.
| Year | Child’s age | Put in | 529 balance |
|---|---|---|---|
| 3 | 3 | $18,000 | $19,621 |
| 6 | 6 | $36,000 | $42,991 |
| 9 | 9 | $54,000 | $70,824 |
| 12 | 12 | $72,000 | $103,974 |
| 15 | 15 | $90,000 | $143,456 |
| 18 | 18 | $108,000 | $190,480 |
Worked out by Radif Partners · How we calculate · New Hampshire rule read on October 19, 2026, brackets of tax year 2026 · not tax advice
New Hampshire never taxed wages, and the Interest and Dividends Tax, the one personal income tax it had, is repealed for taxable periods beginning after December 31, 2024. For 2026 there is therefore no New Hampshire income tax at all: a 529 contribution earns no state deduction or credit, and no withdrawal can create a state tax bill. The state sponsors two programs, the New Hampshire UNIQUE College Investing Plan, sold directly, and a second plan sold through financial professionals. The UNIQUE Plan accepts contributions until a beneficiary's balance reaches $650,580, a limit only one state in this site's table exceeds. What a 529 does for a New Hampshire family is federal: untaxed growth and tax-free withdrawals for college and, from 2026, up to $20,000 a year of K-12 costs per child. At $500 a month from birth and a 6 % assumed return, the account reaches about $190,480 at 18.
| State income tax on wages | None |
|---|---|
| Benefit for contributions | None (no income tax) |
| State plans (official names, no recommendation) | New Hampshire UNIQUE College Investing Plan, Fidelity Advisor 529 Plan |
| Account balance limit | $650,580 |
The last state income tax is gone
Until 2024, New Hampshire residents paid a tax on interest and dividends, even though wages were never taxed. The Department of Revenue Administration states the tax is repealed for periods beginning after December 31, 2024. A 529 has always sheltered its earnings, but in 2026 the comparison with an ordinary taxable account no longer includes any state tax on that account either. Only federal tax on dividends and gains separates the two.
The calculator at the top runs a family with a newborn, $500 a month and $140,000 of income. Over 18 years the 529 grows to about $190,480; the taxable account ends near $177,013 after federal tax. Families who start later can test their case here.
Starting a New Hampshire 529 at 12
In the 529 at age 18
$79,959
| You put in | $63,200 |
| Growth, tax-free for school costs | $16,759 |
| Taxable account after tax | $77,363 |
| New Hampshire tax saved, 6 years | $0 |
UNIQUE and the second plan
The UNIQUE Plan Fact Kit of January 2, 2026 describes the UNIQUE College Investing Plan, offered by the State of New Hampshire, and a separate plan sold through financial professionals. Its $650,580 contribution limit is for the UNIQUE Plan; the second plan's own limit was not read. A New Hampshire family can just as well use another state's plan: with no state benefit at stake, the plan choice has no tax side here.
K-12 and the 2025 federal changes
With no state income tax, the state treatment of K-12 withdrawals, credential programs, loan repayments and Roth IRA rollovers is simply not a question. The federal rules decide: from 2026, up to $20,000 a year per child for K-12 costs, and the 529 to Roth IRA rollover within the $35,000 lifetime limit.
K-12 tuition from a UNIQUE account
Tax-free from the 529 this year (federal)
$15,000
| Federal cap per child, 2026 | $20,000 |
| Above the cap | $0 |
| Federal tax and 10 % on that part | $0 |
| New Hampshire treatment | No state income tax |
Crossing the border
Many New Hampshire families sit near Massachusetts, and a move south changes the picture. Massachusetts deducts contributions to its MEFA programs, up to $2,000 on a joint return. The official sources it relies on name only the U.Fund and U.Plan, so a couple at $140,000 who keep funding a UNIQUE account after moving would save $0 on the Massachusetts return, against $100 in a U.Fund. Other states treat a rollover in differently: Nebraska deducts money rolled into its plans, while Michigan and Minnesota leave rollovers out of the count. The Massachusetts page has the full rule.