New Hampshire has no state income tax, so selling appreciated real estate is taxed only at the federal level — still 23.8% on the gain. A 1031 exchange into a Delaware Statutory Trust lets New Hampshire investors defer that federal tax and convert active rentals into passive, professionally managed real estate without giving up a chunk of the proceeds.
The New Hampshire tax math
Here's the tax stack on a long-held rental sold for a $1.5M gain (excludes depreciation recapture, taxed separately at up to 25%):
| On a $1.5M gain | Tax |
|---|---|
| Federal long-term capital gains (20%) | $300,000 |
| Net investment income tax (3.8%) | $57,000 |
| New Hampshire state tax | $0 |
| Total if you simply sell | $357,000 |
| Tax if you 1031 into a DST | $0 deferred |
Even with no New Hampshire income tax, the federal bill on a large gain is real — $357,000 on a $1.5M gain — versus $0 now with a qualifying exchange. Run your New Hampshire numbers →
New Hampshire 1031 rules
Rules summarized as of 2026 — verify with your tax advisor.
Conforms to federal §1031
New Hampshire levies no personal income tax, so a sale is taxed only federally; a 1031 exchange still defers the federal 20% capital-gains rate plus the 3.8% net investment income tax.
Withholding at sale
None at the state level.
How gains are taxed
No state income tax — capital gains are not taxed at the state level.
New Hampshire market snapshot
Illustrative — wire to a market-data feed; refreshed quarterly.
Baker 1031 in New Hampshire
Realized (acquired, held, sold) programs on New Hampshire assets. Joined from full-cycle-deals.csv; sponsor-reported, net-to-investor, not independently verified; past performance ≠ future results.
| Program | Sponsor | Avg annual | Equity × | Hold |
|---|---|---|---|---|
| Griffin Capital (Heritage - Bedford, NH) DST (Estimated) — Bedford | Griffin Capital | 12.80% | 1.70x | 5.58 yr |
See every New Hampshire deal in the Data Center →
Current offerings for New Hampshire investors
| Offering | Sponsor | Type | Status |
|---|---|---|---|
| PG Manchester Industrial DST | Peachtree Group | Industrial | Available |
DST sponsors based in New Hampshire
Learn more
New Hampshire FAQ
Does New Hampshire tax capital gains?
No. New Hampshire has no personal income tax, so capital gains from selling real estate are not taxed at the state level. You still owe federal tax — the 20% long-term rate plus the 3.8% net investment income tax, about 23.8% on the gain — which a 1031 exchange can defer.
Does New Hampshire recognize 1031 exchanges?
With no New Hampshire income tax to conform, federal 1031 treatment governs, and a qualifying exchange defers the federal gain in full.
Why use a 1031 exchange in New Hampshire?
To defer the tax on a large gain (the federal bill alone can reach 23.8%) and move from active landlording into passive, professionally managed real estate while keeping your full equity invested. These are Regulation D offerings for accredited investors.
Disclosures
This page is educational and is not investment, tax, or legal advice, or an offer to sell or a solicitation to buy any security. State tax and 1031 rules summarized here are general, current as of 2026, and not tax advice — verify with your CPA and attorney. For accredited investors only. Representatives may transact business only in states where registered or exempt. Securities offered through Aurora Securities, Inc., member FINRA/SIPC; Baker 1031 Investments, LLC is independent of Aurora. Performance shown is sponsor-reported, realized programs only, net of fees, not independently verified, and not indicative of future results.