New Hampshire SCRA Benefits: State-Duty SCRA, No Tax
Part of: The Complete Guide to the SCRA
New Hampshire pulls off something rare: it closed the state-duty gap the federal SCRA leaves, and it taxes no income at all. Most states give a Guard member one or the other. New Hampshire stacks both.
Where New Hampshire goes past the federal floor
| Protection | Federal SCRA | New Hampshire |
|---|---|---|
| Guard on state active duty (30+ days) | ✕ Not covered | ✓ Full SCRA applies (RSA 110-C:2) |
| 6% cap, lease exit, default judgment | ✓ On federal orders | ✓ Via 110-C:2 on state orders |
| Civilian job (USERRA reemployment) | Federal duty | ✓ RSA 110-C:1, with a remedy |
| State income tax on the duty-station election | Depends on state | ✓ None. 0% |
The civil-relief bridge
RSA 110-C:2 is short and powerful. A member ordered by the governor to state active duty for 30 days or more is “afforded the same civil protections, rights, privileges, benefits and relief” accorded under the federal SCRA. That is an import by reference, so the 6% rate-cap mechanics, the lease exit, and the default-judgment shield all reach state orders. Run the same play with the letter generator and cite 110-C:2. The statute adds attorney fees for the prevailing party, which changes how a lender responds.
The tax side: no income tax at all
New Hampshire never taxed earned income, and it repealed its tax on interest and dividends at the end of 2024. For service members that turns a New Hampshire assignment into the cleanest version of the duty-station tax election: you and your spouse may elect the duty-station state and pay $0 state income tax on covered income, even if you are domiciled in a state that taxes. Stack the car-tax rules and a New Hampshire tour is quietly a raise.
New Hampshire, step by step
- NH Guard on state active duty 30+ days: send the 6% cap letters on pre-service debt and cite RSA 110-C:2 as the bridge to the SCRA.
- PCS or 90+ day activation with a lease: use the lease exit and the termination calculator.
- Lender or landlord ignores the law: enforce 110-C:2 and seek the attorney fees the statute allows the prevailing party.
- Job touched by a state activation: invoke RSA 110-C:1 and the ESGR complaint process.
- Stationed in New Hampshire: make the duty-station tax election the month you arrive. There is no state income tax to pay.
The law behind this: N.H. RSA 110-C:2
Civil Relief for the National Guard, State Guard, or Militia: the federal SCRA protections extended to state active duty of 30 days or more: read the statute.
Frequently asked questions
Does New Hampshire cover the Guard on state active duty?
Yes. RSA 110-C:2 says a member called by the governor to state active duty for 30 days or more receives the same civil protections, rights, privileges, benefits, and relief accorded under the federal Servicemembers Civil Relief Act. It imports the federal statute by reference, so state orders carry the same protections as federal orders.
Which protections apply on state orders?
The federal SCRA toolkit: the 6% interest cap on pre-service debt, residential and motor-vehicle lease termination, default-judgment protection, and the stay of proceedings. RSA 110-C:2 also lets a prevailing party recover reasonable attorney fees in an enforcement action, which gives the right real teeth.
Does New Hampshire tax military pay?
No. New Hampshire has no state income tax. It never taxed earned income, and it repealed its remaining tax on interest and dividends at the end of 2024. A duty station here means $0 state income tax on covered military pay, whatever your home of record, which makes it a clean tax election.
What protects my civilian job?
RSA 110-C:1 gives members called to state active duty the same employment and reemployment rights as USERRA provides for federal service, including protection against being denied hiring, retention, or promotion for Guard obligations, with a complaint and remedy process. It closes the federal-versus-state gap for your job.
Sources
Heads up: SCRA Saver publishes general information, not legal or financial advice. Laws change and every situation differs. Confirm details with your installation legal assistance office (free for service members) or a licensed professional.