Thinking of Heading North? Let’s Talk Money
Relocating is not just about ZIP Codes; it is about taxes, housing, and lifestyle. If you are moving from Massachusetts to New Hampshire, you are likely motivated by more than just scenery.
Each year, more Massachusetts residents head north, drawn by New Hampshire’s lower tax structure and quieter pace of life. But is the cost of living in New Hampshire lower? Let’s weigh the financial pros and cons of life in the Granite State compared to Massachusetts.
Housing Costs: Where You Will Feel the Difference First
One of the most obvious differences in cost of living is home prices in New Hampshire versus Massachusetts. In most parts of Massachusetts, especially Greater Boston, housing prices are among the highest in the country. That is why New Hampshire living has become more attractive for working families, retirees, and remote workers alike.
| Location | Median Home Price (2024) |
|---|---|
| Southern New Hampshire (e.g., Nashua, Salem) | ~$520,000 – $565,000 |
| Massachusetts (statewide avg.) | ~$580,000 – $630,000 |
| Boston metro area | ~$750,000 – $900,000 |
Renters also benefit. The New Hampshire cost of living for rental properties is notably lower than in Boston-area cities, although demand has pushed prices up in border towns.
Pro Tip: Look beyond popular commuter towns. Places like Claremont, Laconia, or Concord often offer better value, especially if you are not commuting to Massachusetts daily.
The Tax Equation: Why NH Often Comes Out Ahead
One of the biggest financial advantages of moving from Massachusetts to New Hampshire is the tax situation.
| Tax Type | Massachusetts | New Hampshire |
|---|---|---|
| Income Tax | 5% flat rate | 0% on earned income |
| Sales Tax | 6.25% | 0% |
If you are a high-income earner or have investment income, this difference can amount to thousands saved annually.
Example:
If you earn $100,000 in Massachusetts, you will pay around $5,000 in state income tax. In New Hampshire, it is $0.
Day-to-Day Costs: Not Always Cheaper, but Often Simpler
Though you will save on taxes, the cost of living in New Hampshire is not always dramatically lower across the board.
| Expense Category | New Hampshire | Massachusetts |
|---|---|---|
| Income Tax | 0% | 5% flat rate |
| Sales Tax | 0% | 6.25% |
| Groceries | Slightly higher | Slightly lower |
| Gasoline | Lower overall | Higher due to taxes |
| Utilities | Higher in winter | Milder impact |
| Childcare | Costs are similar in urban areas | Significantly more expensive, especially in cities |
| Healthcare Access | Limited rural options | Broader provider network |
Is New Hampshire expensive to live in? Not across the board, but some tradeoffs come with the lower tax burden.
If you are used to paying thousands per year in taxes in Massachusetts, life in New Hampshire could feel refreshingly affordable, even if certain services cost a bit more.
Bonus Tip: Watch gas prices. New Hampshire is usually cheaper due to MA taxes, but global factors (like war or supply chain issues) can spike costs regionally.
Property Taxes: The Hidden Costs of Living in New Hampshire
One of the few financial downsides to living in New Hampshire? Property taxes.
While Massachusetts’ statewide property tax rate averages around 1.12%, New Hampshire’s average rate is closer to 1.86%, among the highest in the U.S.
That said, you will need to run the numbers:
| Example | Westford, Massachusetts | Bedford, New Hampshire |
|---|---|---|
| Average Tax Rate | ~1.05% | ~1.76% |
| Annual Taxes | $605,000 x 1.05% = $6,352.50 | $542,000 x 1.76% = $9,539.20 |
But if you are buying a smaller or less expensive home in New Hampshire, your total tax bill might still be lower. Again, it comes down to your individual budget.
Cost of Living in NH and MA During Winter
New England winters come with extra costs, whether you’re living in New Hampshire or Massachusetts.
From heating oil and snow removal to cold-weather gear, winter can take a bite out of your budget if you’re not prepared. New Hampshire residents, especially in rural areas, often face higher heating and snow management expenses, while Massachusetts residents in urban areas may have more access to municipal services but still contend with the cold.
Estimated Winter Budget (per household):
- Heating:
- NH: $2,000 – $4,000 per season
- MA: $1,500 – $3,000 per season
- Snow Plowing or Snow Removal:
- NH: $400 – $800/season
- MA: $250 – $600/season
- Snow Tires & Winter Gear:
- Both States: $600 – $1,000+
Pros and Cons of NH Living
No state is perfect. Here is a quick overview to help you weigh your move:
Pros
- No income or sales tax
- Lower home prices (especially outside major metro areas)
- Beautiful outdoors and slower pace of life
- Strong public school systems in many towns
Cons
- High property taxes
- Harsh winters and high associated heating costs
- Limited public transportation
- Fewer health care options in rural areas
For many, the tradeoffs are worth it. But it is important to go in with clear expectations.
Final Thoughts: Is Moving North Right for You?
For many, the answer is yes, especially if you are looking for:
- Lower taxes
- More space
- Less urban congestion
- A family-friendly pace of life
But it is not one size fits all. Moving from Massachusetts to New Hampshire works best for those comfortable driving more, planning for winter, and trading city access for natural beauty.
Before making a move, we recommend:
- Building a state-to-state budget
- Factoring in New Hampshire winter costs
Take the stress out of relocating and protect your family’s financial future. Get professional guidance from a financial advisor tailored to your goals. If you’re looking for an advisor to talk with, please don’t hesitate to reach out at (603)589-8010 to see how we can help you.
Disclaimer: This is not to be considered investment, tax, or financial advice. Please review your personal situation with your tax and/or financial advisor. Milestone Financial Planning, LLC (Milestone) is a fee-only financial planning firm and registered investment advisor in Bedford, NH. Milestone works with clients on a long-term, ongoing basis. Our fees are based on the assets that we manage and may include an annual financial planning subscription fee. Clients receive financial planning, tax planning, retirement planning, and investment management services and have unlimited access to our advisors. We receive no commissions or referral fees. We put our client’s interests first. If you need assistance with your investments or financial planning, please reach out to one of our fee-only advisors. Advisory services are only offered to clients or prospective clients where Milestone and its representatives are properly licensed or exempt from licensure.
