Is It Cheap to Live in New Hampshire?

Living in New Hampshire often raises questions about its affordability. Many consider the state for its quality of life, natural beauty, and financial advantages. Understanding the true cost of living involves examining various expenses that impact household budgets. This overview details what it entails to reside in the Granite State.

New Hampshire’s Overall Cost of Living

New Hampshire’s cost of living is generally higher than the national average. The state ranks among those with a higher cost of living. However, when contrasted with neighbors like Massachusetts, New Hampshire can appear more favorable in certain financial aspects. The average personal consumption cost in New Hampshire was approximately $56,727 per year in 2021.

Major Expenditure Categories

Housing expenses in New Hampshire tend to be higher than the national average. As of August 2025, the average rent for all property types is around $2,191 per month, with one-bedroom apartments averaging about $1,834 and two-bedroom units costing approximately $2,148 monthly. For those looking to purchase, the median home price in January 2025 reached $502,500, a significant increase from previous years.

Utility costs also contribute substantially to living expenses, particularly due to the colder climate. An average household might spend around $434 per month on utilities. Heating costs vary depending on the fuel type, with natural gas averaging about $1.14 per therm, fuel oil around $3.56 per gallon, and propane at approximately $3.98 per gallon as of August 2025. Electricity for residential use has an average price of $0.2254 per kilowatt-hour, and internet services typically add about $151 monthly.

Transportation expenses are another significant budget item for residents. Gas prices fluctuate, but the average for New Hampshire was around $3.02 per gallon in late August 2025. Vehicle insurance premiums and registration fees also factor into the total cost of owning a car. Public transportation options are limited in most areas, making personal vehicles a near necessity for many.

Grocery costs in New Hampshire are generally comparable to national averages, with a single resident spending around $379.92 per month on food. A family of four could expect to spend closer to $1,119.08 monthly on groceries. Healthcare expenses are also a consideration, with the average cost of health insurance in New Hampshire being about $373 per month for an individual or $1,192 per month for a family of four in 2025. The average annual healthcare cost per person in New Hampshire was reported at $9,526 in 2022.

For families with young children, childcare represents a notable expense. The average monthly cost for childcare services, such as daycare or preschool, can range from $839 to $1,150 or more per child.

The New Hampshire Tax Structure

New Hampshire maintains a distinct tax structure. The state does not levy a statewide general sales tax on goods and services. It also does not impose a personal income tax on wages and salaries. This means individuals do not pay state income tax on their earnings from employment.

The state did previously have an Interest and Dividends (I&D) Tax, which applied to income derived from interest and dividends. This tax rate was 3% for the 2024 tax year. However, the I&D tax is fully repealed for taxable periods beginning after December 31, 2024, eliminating this specific tax burden for 2025 and beyond. While this provides a tax advantage for wage earners and investors, property taxes represent a substantial financial consideration.

Property taxes are a primary source of revenue for local municipalities, counties, and school districts in New Hampshire. These taxes are assessed based on the fair market value of real property, and the rates can vary significantly by town. New Hampshire’s effective property tax rate on owner-occupied housing is among the highest in the country, averaging around 1.61% of the home’s value. This means a homeowner with a median-valued property could pay approximately $4,707 annually in property taxes. The substantial reliance on property taxes can lead to higher housing costs for homeowners and indirectly affect renters through increased rental prices.

Regional Variations in Cost

The cost of living in New Hampshire is not uniform across all its regions. Costs, particularly for housing and certain services, tend to be higher in more densely populated areas. Southern New Hampshire, especially communities close to the Massachusetts border or within commuting distance of Boston, often experiences elevated expenses. Cities like Portsmouth and Manchester, while offering more amenities and employment opportunities, typically have higher average rents and home prices due to their appeal and proximity to economic hubs.

Conversely, more rural areas and the northern parts of the state generally present lower living costs. Towns in these regions may offer more affordable housing options and a reduced overall cost burden. For example, cities like Berlin and Claremont are noted for having lower rents and home prices compared to the state average.