Are pension benefits taxable in New Hampshire?

Yes, pension benefits are generally taxable in New Hampshire. The state follows federal guidelines regarding the taxation of retirement income. Therefore, most pension benefits received by individuals residing in New Hampshire are considered taxable income and subject to state income tax. However, there are some exceptions and certain types of pensions may be partially or fully exempt from taxation. For example, pensions received from the armed forces, federal civil service, and some railroad retirement pensions are generally tax-free. Additionally, if the pension benefits were earned during prior years while residing in another state with no income tax, then a portion of the benefits may be exempt from New Hampshire tax as well. It is advisable to consult the New Hampshire Department of Revenue Administration or a tax professional for specific guidance related to individual circumstances.