New Hampshire Severance — No State Tax, Federal WARN, 2026

New Hampshire WARN: what applies#

New Hampshire has no state-level mini-WARN notice statute. The operative layoff-notice regime for New Hampshire private employers is federal WARN (29 U.S.C. §§ 2101–2109): employers with 100 or more full-time employees must give 60 days advance written notice for a mass layoff (50+ affected at a single site of employment that constitutes at least 33% of the active workforce, or 500+ regardless of percentage) or a plant closing. Notice must go to affected employees (or their representatives), the New Hampshire Employment Security (NHES) Rapid Response unit, and the chief elected official of the local government. Liability for non-compliance is back pay and benefits for each day notice was not given, up to 60 days, plus a $500 per day civil penalty payable to the local government. New Hampshire adds no shorter notice, no lower employer-size trigger, and no statutory severance mandate.

How severance is taxed in New Hampshire#

New Hampshire has NO state income tax withholding on wages, severance, bonuses, commissions, or any other earned compensation. The narrower NH Interest and Dividends Tax (NH RSA Chapter 77), which previously taxed unearned investment income, was REPEALED IN ITS ENTIRETY effective January 1, 2025 per 2021, 91:189, II — meaning for tax year 2026 New Hampshire has zero state-level income tax on either earned or unearned income. Severance paid to a New Hampshire employee is therefore subject ONLY to federal supplemental withholding (22% on amounts up to $1,000,000 cumulative per employee per year, 37% on amounts above that) and FICA (Social Security 6.2% up to the wage base, Medicare 1.45% plus 0.9% additional Medicare on wages above $200,000 single / $250,000 MFJ).

Calculate your situation#

Inputs default to New Hampshire; adjust to your specifics.

FAQ#

Does New Hampshire require severance pay?

No. New Hampshire does not have a state-mandated severance statute, and there is no New Hampshire mini-WARN. Severance is entirely employer-discretionary unless your employment contract or company policy requires it. The only layoff-notice regime with teeth in New Hampshire is federal WARN (29 U.S.C. §§ 2101–2109), which requires 60 days advance notice or back pay for missed days at employers of 100+ for covered mass layoffs — but WARN mandates notice, not severance.

How is severance taxed in New Hampshire?

New Hampshire has NO state income tax withholding on wages — the state has historically been one of nine states with no broad-based individual income tax. Beyond that, the narrower NH Interest and Dividends Tax (NH RSA Chapter 77), which previously taxed unearned investment income, was REPEALED in its entirety effective January 1, 2025 per 2021, 91:189, II — so for tax year 2026 New Hampshire has zero state-level income tax on EITHER earned OR unearned income. Severance paid to a New Hampshire employee is therefore subject ONLY to federal taxes: the federal supplemental withholding rate is 22% on amounts under $1,000,000 cumulative for the year and 37% on amounts above (IRC § 3402(g); IRS Publication 15). Plus FICA: Social Security 6.2% up to the $184,500 wage base, Medicare 1.45% on all wages, and an additional 0.9% Medicare on wages above $200,000 single / $250,000 MFJ. No state withholding applies.

Does federal WARN apply to my New Hampshire layoff?

Federal WARN applies if (a) your employer has 100 or more full-time employees and (b) the layoff at your single site of employment affects 50 or more employees AND at least 33% of the active workforce, OR affects 500 or more employees regardless of percentage. If federal WARN applies, you are entitled to 60 days advance notice or back pay and benefits for each day notice was not given (up to 60 days). New Hampshire has no state mini-WARN that would impose obligations beyond federal WARN, so smaller New Hampshire employers (under 100) are not subject to any layoff-notice mandate.

Does OWBPA apply in New Hampshire?

Yes. OWBPA is federal (29 U.S.C. § 626(f)) and applies in all states. If you are age 40 or older and your New Hampshire employer asks you to sign a waiver of age-discrimination claims under the ADEA in your severance agreement, the waiver is enforceable only if you receive at least 21 days to consider the agreement (45 days for group exits — a "reduction in force" or "exit incentive program"), and 7 days after signing to revoke. Group exits additionally require disclosure of the ages and job titles of all selected and non-selected employees in the decisional unit. New Hampshire's Law Against Discrimination (NH RSA Chapter 354-A) separately prohibits age discrimination by employers with 6 or more employees — a lower threshold than the federal ADEA's 20-employee minimum, so smaller New Hampshire employers are still covered by state law. A release of state-law age claims under RSA 354-A does not require OWBPA-compliant 21/45/7 procedures, but the federal ADEA release portion still does.

Can I collect New Hampshire unemployment while receiving severance?

It depends on how the severance is structured. NH RSA Chapter 282-A does not contain a specific severance-pay offset provision, so New Hampshire Employment Security (NHES) generally treats severance based on allocation: severance designated for a specific notice period (e.g., 'wages in lieu of notice') typically delays UI benefits during that period; severance paid as a lump sum that is NOT designated as wages for a specific period typically does not delay benefits. Vacation, sick, and holiday pay paid at separation may also affect UI eligibility under NHES rules. Practical takeaways: (a) file your NH UI claim with NHES on or shortly after your last day worked at nhes.nh.gov to establish your benefit year and clear the one-week waiting period; (b) fully disclose the severance amount, structure, and any employer designation when you apply and on weekly certifications — failure to report severance is fraud; (c) confirm the current NHES maximum weekly benefit amount before relying on net-of-benefits figures.

Are non-competes enforceable in New Hampshire after a layoff?

Sometimes — New Hampshire has TWO distinctive non-compete statutes that limit enforcement, plus common-law reasonableness for everyone else. (1) NH RSA 275:70 (effective July 14, 2012, amended July 28, 2014) requires that any employer asking a new employee to sign a non-compete as a condition of employment provide a copy of the agreement to the prospective employee PRIOR to the employee's acceptance of the employment offer. Non-competes disclosed only after acceptance are UNENFORCEABLE — though other employment contract provisions remain valid. (2) NH RSA 275:70-a defines a 'low-wage employee' as one earning an hourly rate less than or equal to 200 percent of the federal minimum wage (approximately $15.20/hour at the current $7.25 federal minimum) and PROHIBITS employer enforcement of non-competes against low-wage employees. For workers ABOVE the threshold who received the agreement before accepting employment, New Hampshire applies common-law reasonableness — covenants must be reasonable in time, geography, and scope, ancillary to a legitimate business interest (trade secrets, confidential information, customer relationships, goodwill), and must not impose undue hardship on the employee or harm the public. Practical takeaway: in New Hampshire, the non-compete release clause in your severance offer is often worth less than in other states — for low-wage workers, the underlying covenant is void by statute; for higher-wage workers, a covenant not properly disclosed at hiring is also void. Have an attorney review duration, geography, and scope before signing.

Does New Hampshire have a state paid family leave program?

Not in the same sense as Massachusetts, Connecticut, or Rhode Island. New Hampshire created Granite State Paid Family Leave (NH RSA 21-I:99 et seq.) under HB 2 in 2021, but it is a VOLUNTARY, state-employee-anchored program — not a mandatory state-wide payroll-deduction program. Private New Hampshire employers may OPT IN to provide their workforce paid family medical leave coverage through the state-administered insurance program, and individual New Hampshire residents whose employers do not opt in may purchase coverage individually, but there is no mandatory employer participation and no mandatory employee payroll contribution at the state level. There are state income-tax credits available to participating employers (or would be, except that NH has no income tax). Practical takeaway: unlike CT, RI, DE, or MD, NH does NOT automatically deduct paid-leave premiums from your paycheck during active employment, and there is no NH state PFL benefit you can stack against severance. Confirm current Granite State Paid Family Leave details at paidfamilymedicalleave.nh.gov.