Overwhelmingly, it will be paid by wealthy New Hampshire residents. If you are a wealthy person with a long-term capital gain of any size whatsoever – even millions of dollars – your tax rate is 15%. It is simply not fair that people should pay higher taxes on income earned from working than they do on unearned income.
Does NH tax short term capital gains?
Milford, NH Resident Looks for Insight Short-term capital gains come from selling capital assets that have been owned for less than one year. The tax rate for this money is equal to your ordinary tax rate. In 2020 this tax rate was either 0%, 15% or 20%, depending on your annual income.
What happens if you work in Massachusetts and live in NH?
If you live in Massachusetts and have dividend income, it’ll be taxable to MA instead of NH, even if you work in New Hampshire. If you’ve lived in NH all your life, you may not have known about this tax because it does not apply to everyone.
When do you have a long term capital gain?
If you sell it in one year or less, you have a short-term capital gain. If you sell the home after you hold it for longer than one year, you have a long-term capital gain. Unlike short-term gains, long-term gains are subject to preferential capital gains tax rates.
Is it better to live in NH or Ma?
If you and your spouse are already working in MA, moving to NH probably won’t save you much on taxes. You might even end up paying more in taxes since NH is known for generally having a high property tax! However, if one spouse (or both!) works in NH, and the other in MA, there could be considerable tax savings.
How are capital gains and losses taxed in Massachusetts?
The taxpayer deducts the $1,000 short-term capital loss and $1,000 of the long-term capital losses against the $10,000 dividend income. The resulting Part A taxable income of $8,000 is taxed at 5.3%. For taxable year 2003, the taxpayer will carry forward $3,000 in unused long-term capital losses. [ 5]
