Is Life Insurance Taxed In New Hampshire? 
Taxed depends a lot on what exactly is going on . Death benefits are not taxed for income purposes -LRB- as is the case with the majority of policies in all states -RRB- . And New Hampshire has no estate tax . Distributions from a life insurance policy that are not a return of basis are recognized as income , but since New Hampshire does not have an income tax , there would be no income tax due on those distributions . 