NH has income tax on dividends and interest. About half a dozen states have no state income tax. You are correct, I should have stated NH has no state income or sales taxes. But I think the lack of income tax is overrated. We have no income tax in Washington State, but the other taxes more than make up for it. In some ways, an income tax is preferable because you know where it is going to be and can plan for it. Sales tax, fees, and the like are harder to avoid. I agree. My husband has been wanting to move to Florida because of no income tax, but I feel the cost of living more than offsets the taxes.