Relocating always comes down to the numbers. This guide keeps every figure on the table—housing, taxes, daily bills—so you can judge whether Manchester’s mix of urban energy and New Hampshire tax breaks fits your budget.
Manchester’s Cost of Living Index
Cost-of-living indexes set 100 as the national baseline. Manchester clocks in at 110.7 – 114, or roughly 11 – 14% above average.
While this is higher than the national baseline, it’s important for homebuyers to note that Manchester is still considered one of the most affordable major cities in New Hampshire. The overall index is driven primarily by housing, while other expenses like groceries are nearly on par with the rest of the country.
Source: BestPlaces; Payscale.
Even at this premium, Manchester remains one of New Hampshire’s safest and more affordable “big-city” addresses, offering larger job markets and entertainment options without Boston-level price tags.
The Manchester Housing Market: Prices & Trends
For any homebuyer, the housing market is the single largest component of the cost of living. Manchester’s real estate market is competitive, reflecting high demand to live in the city.
Buying a Home in Manchester
The median home price in Manchester is approximately $455,000, as of May 2025. This is slightly higher than the national average, a trend driven by the city’s popularity and a limited housing inventory.
It’s a dynamic seller’s market, meaning that homes often sell quickly and sometimes for above the asking price.
Renting in Manchester
For those who may rent before buying, it’s useful to know the local rental market. The average rent for a two-bedroom apartment in Manchester is around $2,173 per month as of June 2025.
Rent prices can vary significantly by neighborhood, from around $1,525 in areas like Corey Square to over $2,300 in the revitalized River Corridor.
Understanding New Hampshire’s Tax Advantage
Property Taxes in Manchester
New Hampshire relies heavily on property taxes to fund local services. The property tax rate in Manchester is approximately $18.86 per $1,000 of assessed value, according to 2023 data.
For a home valued at $450,000, this would translate to an annual tax bill of roughly $8,487. While this rate is higher than in many other states, it’s offset by other major tax savings.
Income and Sales Tax
The benefit of living in New Hampshire is the absence of a general state sales tax and a state income tax on wages.
This means you keep more of every paycheck and pay less for retail goods, cars, and other major purchases.
For homebuyers, this can translate into thousands of dollars in annual savings that directly counteracts the higher property tax burden.
Everyday Expenses: Utilities, Food, and Gas
Beyond housing and taxes, your daily and monthly budget will be shaped by everyday costs.
- Utilities: About 18% above national norms; average monthly energy bill sits near $236—winter heating is the big driver.
- Groceries: Essentially level with U.S. prices; a gallon of milk averages $4.73.
- Gasoline: Early June 2025 pump prices ran $2.90 – $2.96/gal, pushing transportation costs to roughly 8% over the baseline.
Bulk shopping at big-box clubs or local co-ops can trim the grocery line; telecommuting or car-pooling counters higher fuel outlays.
Healthcare and Transportation Costs
Healthcare services come in around 6% above the national mark.
Insurance premiums track similarly, though employer plans vary.
Vehicle upkeep and insurance index a bit higher as well, but Manchester’s central location cuts multi-state commute time—Boston is roughly an hour away, Portland 90 minutes, the Seacoast under an hour—saving gas and wear for many dual-city households.
Is Living in Manchester Affordable?
Manchester charges more for roofs and real estate taxes but hands back absolute savings through zero income tax, zero sales tax, and reasonable day-to-day costs.
Higher earners may net out ahead of peer cities; first-time buyers often find the math works once they compare Boston or Worcester alternatives.
The deciding factor: how much house you buy versus the tax dollars you keep.
Cost of Living in Manchester, NH FAQs
About 11 – 14% above U.S. norms, mainly housing. Tax relief balances total spend for many households.
The median selling price for a home in Manchester was approximately $455,000 as of May 2025.
Property taxes are a primary source of funding. The rate is around $18.86 per $1,000 of your home’s assessed value. This is higher than in many states but is balanced by having no income or sales tax.
Generally, Manchester is considered to have a slightly lower cost of living than Concord, particularly regarding housing. However, this can vary based on specific neighborhood choices and lifestyle.
While this depends on lifestyle, financial experts recommend a minimum annual income of around $50,000 for a single person and $66,600 for a family to live comfortably in Manchester.
No, New Hampshire does not have a general tax on wages or earned income, which is a major financial benefit for residents.
