Consider that $250,000 you have in a non-tax advantaged account, which if you’re lucky is earning 4% per year, or $10,000. If you live in NH, you’re subject to the Interest & Dividends tax. Now pretend that the Republicans, flush with federal COVID money, hadn’t decided to lower the tax rate from 5% before abolishing it altogether after this year. What does that mean for you? Well, if you’re single and not yet 65, you get a deduction of $2,400, leaving you with a taxable amount of $7,600, and a tax bill of $380. Single and 65+, the deduction is $3,600, with a tax bill of $320. Married and not yet 65? Deduct $4,800, tax is $260. Married and 65+? Deduct $7,200, tax of $140. It’s a wonder you’re not living on the streets. 87% of NH residents do not pay this tax. It does not apply at all to interest and dividends earned in a 401k or IRA.

Joyce Craig has advocated for bringing it back, with enhanced deduction amounts. But Kelly Ayotte is so desperate to put Joyce Craig’s name and the word “taxes” in the same sentence, she wants to eliminate the only NH tax that is actually above revenue estimates. New Hampshire residents know what state tax we’re paying. It’s called the property tax, and it will be the first and only tax that will increase if Kelly Ayotte is elected governor.  

Patrice Rasche

Canterbury