A look at some of the trends in tax collections over the past decade with a brief description of each of the state’s eight major sources of tax revenue — highlighting some of the characteristics that can help guide policymakers in devising a response to the fiscal challenges now before New Hampshire.
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New Hampshire has long been portrayed as a low tax state, due in large measure to the absence of broad-based sales and income taxes. Census Bureau data released last month generally affirm that portrayal, revealing that, relative to the size of its economy, New Hampshire has nearly the lowest level of combined state and local taxes in the nation.
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New Hampshire’s economy continues to grow overall, but significant disparities in economic conditions and service needs exist within the boundaries of the Granite State. Differences between the southeastern part of the state and the more rural northern and western regions can be identified broadly and are present across many different indicators. However, experiences in local communities can vary widely even within regions. NHFPI’s new Issue Brief, Measuring New Hampshire’s Municipalities: Economic Disparities and Fiscal Capacities, explores measures indicating the differing experiences of these communities. Interactive maps showing many of these measures are available through NHFPI’s Data Viz posts.