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April 02. 2014 9:21PM

Think tank says NH tax burden among lowest

Only six states in the country had a lower state and local tax burden in 2011 than New Hampshire, according to the annual ranking released on Wednesday by the national Tax Foundation.

The Washington, D.C.-based think tank founded in 1937 has ranked states by order of tax burden for nearly two decades.

“For each state, we compute the measure of tax burden by totaling the amount of state and local taxes paid by state residents and then dividing these totals by each state’s total income,” the report states.

In New Hampshire, the state and local tax burden eats up 8 percent of the income per capita. New Hampshire has the ninth-highest per-capita income in the nation, and the seventh-lowest tax burden.

The bottom six states for tax burden in 2011 were Tennessee, Louisiana, Texas, South Dakota, Alaska and Wyoming.

New Hampshire has been remarkably consistent in the Tax Foundation rankings since 1980, when the burden was estimated at 7.9 percent of income. It has ranged from a high of 8.2 percent to a low of 7.5 percent in the years since.

During the 2011 fiscal year, state-local tax burdens as a share of state incomes decreased on average, largely due to the economic recovery and the growth of income in all states.

Residents of New York, New Jersey, and Connecticut had the highest state-local tax burdens as a share of income.

The New Hampshire chapter of Americans for Prosperity, a conservative policy group, applauded the results of the Tax Foundation study, but suggested that the recently approved legislation in Concord could jeopardizes future rankings.

“The decision by the state legislature to expand Medicaid, coupled by the gas and diesel tax passed by the state Senate means that our ability to remain competitive in the future is in jeopardy,” said Greg Moore, AFP-NH state director.


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