Live in Indiana, Work in New Hampshire: Which State Taxes Your Paycheck?
Answer
Indiana gets all of it. Because New Hampshire does not tax wage income, no New Hampshire withholding exists and no New Hampshire return is required — but Indiana taxes residents on worldwide income, so every dollar earned in New Hampshire still belongs on your Indiana resident return.
Last verified
The instinct that working in a no-tax state means paying no tax is the single most expensive misunderstanding in this niche. New Hampshire takes nothing, but Indiana still taxes residents on income earned anywhere, so the full amount lands on your Indiana return.
What you file
- 1Resident return · Indiana
File a Indiana resident return reporting all of your income.
The two states, side by side
| Indiana | New Hampshire | |
|---|---|---|
| Taxes wages | Yes — flat | No |
| Reciprocity partners | 5 (Form WH-47) | None |
| Convenience rule | No | No |
| Nonresident return | Form IT-40PNR | Not applicable |
| Credit for other-state tax | Schedule 6 (Form IT-40PNR) | No income tax |
| Nonresident safe harbour | None published | Not applicable |
| Local income tax | Yes | No |
| Revenue department | Indiana Department of Revenue | New Hampshire Department of Revenue Administration |
| Last verified |
The other direction
Reversing the commute does not always reverse the answer. Living in New Hampshire and working in Indiana gives:Work state only.
Same two states, different situation
The withholding answer turns on how you are paid and where the work happens, not only on which two states are involved.
- Remote worker: Indiana → New HampshireHome state only
- 1099 contractor: Indiana → New HampshireHome state only — estimated payments
- Moved mid-year: Indiana → New HampshireOne part-year return — the state you left
Other Indiana pairs
Questions people actually ask
I live in Indiana and work in New Hampshire. Which state takes the tax out of my paycheck?
Indiana gets all of it. Because New Hampshire does not tax wage income, no New Hampshire withholding exists and no New Hampshire return is required — but Indiana taxes residents on worldwide income, so every dollar earned in New Hampshire still belongs on your Indiana resident return.
Which state should my employer be withholding for?
Indiana. Your employer should withhold Indiana tax rather than New Hampshire tax on these wages. If a New Hampshire line is showing on your pay stub, raise it with payroll now rather than at filing time.
How current is this?
The Indiana and New Hampshire rules on this page were last checked against Indiana Department of Revenue and New Hampshire Department of Revenue Administration on 2026-08-07. We re-check the full grid every December after state legislative sessions close, and re-check the convenience-of-the-employer states quarterly because that is where the rules move fastest.
Sources
Every fact above comes from the revenue department that publishes the rule. We do not cite secondary summaries, and we do not restate a figure we could not find at source.
- Indiana Department of Revenue — individual income taxaccessed 2026-08-07
- New Hampshire Department of Revenue Administration — individual income taxaccessed 2026-08-07