New Hampshire Mileage Deduction 2026: No Income Tax, Federal-Only Savings

New Hampshire has no tax on earned income. Your mileage deduction applies to your federal return only. At 15,000 business miles and the 2026 IRS rate of 72.5¢ per mile, that is roughly $4,056 in combined federal income tax and self-employment tax savings.

W-2 employee in NH? Your employer may owe you reimbursement under RSA 275:57. See our New Hampshire reimbursement guide.

No Income Tax on Earned Income

NH does not tax wages, salaries, or self-employment income. There is no state form to file for earned income, no state adjustment for the mileage deduction, and no second deduction to claim. (NH does have a 3% interest and dividends tax in 2024, scheduled to phase out by 2027, but that is unrelated to mileage.)

At 15,000 business miles and the 2026 rate, the math comes out to a $10,875 deduction. At a 22% federal bracket plus 15.3% self-employment tax, your savings are roughly $4,056. The federal calculation is identical for self-employed drivers in Florida, Texas, or Washington at the same income level.

NH's Driving Economy

NH has a small geographic footprint but real mileage-heavy work:

• Rural sales reps and home health workers covering long distances between Manchester, Concord, the Lakes Region, and the North Country.
• Cross-border commuters driving into Boston for work but logging business miles inside NH for client visits and side work.
• Real estate agents in growth markets like Nashua and Portsmouth.
• Trades: HVAC, plumbing, electrical contractors covering wide service areas.

How to Claim

Self-employed: deduct on Schedule C, Line 9. Keep a mileage log with the date, destination, purpose, and miles for each trip. The IRS requires the log to be contemporaneous.

W-2 employees: no federal deduction is available. The mileage deduction for W-2 employees was permanently eliminated under the One Big Beautiful Bill. NH's RSA 275:57 may require your employer to reimburse you instead. See the reimbursement guide.

FAQ

Is there a state mileage deduction in New Hampshire?

No. NH has no tax on earned income, so there is no state-level deduction. Your mileage deduction applies to your federal return only.

What is the 2026 mileage rate in New Hampshire?

The IRS rate of 72.5 cents per mile applies in NH as in every state. NH does not set its own rate.

Can W-2 employees deduct mileage in New Hampshire?

No, not on a federal return. The deduction was permanently eliminated under the One Big Beautiful Bill. However, NH's RSA 275:57 may require your employer to reimburse you. See the reimbursement guide.

How much can a self-employed NH driver save?

At 15,000 business miles, roughly $4,056 in combined federal income and self-employment tax. At 25,000 miles, roughly $6,760.

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