In a bid to address budget shortfalls and provide relief to taxpayers, New Hampshire lawmakers have introduced a series of proposals to overhaul the state's taxation system.On February 20, 2026, Governor Lisa Thompson announced a plan to increase the state's gas tax by five cents per gallon to fund much-needed infrastructure improvements. The proposal, which has garnered support from both Democrats and Republicans, aims to raise an estimated $50 million annually for road and bridge maintenance projects.In addition to the gas tax hike, legislators are considering a proposal to expand the state's sales tax to include online purchases. Under the new plan, out-of-state retailers would be required to collect sales tax on purchases made by New Hampshire residents, generating an estimated $30 million in additional revenue each year.The proposed changes to the taxation system have sparked debate among lawmakers and residents alike. While some argue that the increased taxes are necessary to fund essential government services, others believe that the burden should not fall solely on taxpayers."We understand that nobody likes to pay more in taxes, but we have a responsibility to maintain our roads and bridges for future generations," Governor Thompson said in a statement. "These proposals strike a balance between generating revenue and ensuring that New Hampshire remains a competitive state for businesses and residents."Opponents of the tax hikes have vowed to fight the proposals, arguing that they will place an undue burden on working families and small businesses. Some have suggested alternative solutions, such as cutting spending or finding new sources of revenue.As the debate over taxation continues, lawmakers are expected to hold hearings and gather public input before finalizing any changes to the state's tax system. The outcome of these proposals will have far-reaching implications for New Hampshire residents and businesses in the years to come.