Live in Tennessee, Work in New Hampshire: Which State Taxes Your Paycheck?
Answer
Neither state taxes your wages. Tennessee and New Hampshire both levy no personal income tax on earned income, so nothing is withheld for either one and you file no state return on either side. Your only wage-tax obligation is the federal one, and no reciprocity form or credit is involved anywhere.
Last verified
Most of the difficulty in multi-state wage tax comes from two states claiming the same income. Here neither one claims it. Tennessee and New Hampshire both sit outside the state income tax system, so there is no competition to resolve.
What you file
There is nothing to file in either Tennessee or New Hampshire on these wages. Your federal return is unaffected — the federal government taxes the income whatever the states do.
The two states, side by side
| Tennessee | New Hampshire | |
|---|---|---|
| Taxes wages | No | No |
| Reciprocity partners | None | None |
| Convenience rule | No | No |
| Nonresident return | Not applicable | Not applicable |
| Credit for other-state tax | No income tax | No income tax |
| Nonresident safe harbour | Not applicable | Not applicable |
| Local income tax | No | No |
| Revenue department | Tennessee 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 Tennessee gives:No state income tax either side.
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: Tennessee → New HampshireNo state income tax either side
- 1099 contractor: Tennessee → New HampshireNo state income tax either side
- Moved mid-year: Tennessee → New HampshireNo state return either side
Other Tennessee pairs
Questions people actually ask
I live in Tennessee and work in New Hampshire. Which state takes the tax out of my paycheck?
Neither state taxes your wages. Tennessee and New Hampshire both levy no personal income tax on earned income, so nothing is withheld for either one and you file no state return on either side. Your only wage-tax obligation is the federal one, and no reciprocity form or credit is involved anywhere.
Which state should my employer be withholding for?
Neither. There is no state income tax to withhold on either side of this pairing, so a state line on your pay stub for Tennessee or New Hampshire is an error worth querying.
How current is this?
The Tennessee and New Hampshire rules on this page were last checked against Tennessee 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.
- Tennessee Department of Revenue — individual income taxaccessed 2026-08-07
- New Hampshire Department of Revenue Administration — individual income taxaccessed 2026-08-07