The forests of New Hampshire led to the early establishment of the timber trade and of shipbuilding. (John Paul Jones's ship Ranger was built in Portsmouth.) In the early 19th century wool mills and cotton mills were established. The town of Manchester became one of the nation's major textile centers. A stagecoach built in Concord proved the most successful vehicle of its type, and the Concord coach held its popularity even after the coming of the railways. Manufacture of boots and shoes began in the 1820's.

Unable to compete with the western states in agriculture, New Hampshire developed its industrial potential to a high degree. It did not, however, concentrate the population in a few urban centers. The depression of the 1930's was especially hard on New Hampshire because so many communities depended on a single industry, generally textiles. Following World War II, much of the state's textile industry moved to the South. However, new industries, such as electronics, were established.

New Hampshire, which has always had popular summer resorts, pioneered in developing skiing facilities and became a favorite winter recreation area. In 1964 New Hampshire began operating the first state-run lottery in the United States in the 20th century. In the 1970's, New Hampshire experienced significant population growth and increased industrial development. The economy continued to expand before slowing down in the late 1980's. During 1980–90, New Hampshire was second only to Florida as the fastest-growing state east of the Mississippi, with a population increase of 21 per cent.

In 1996, the state elected its first female governor, Jeanne Shaheen. She served two successive terms.

As of the early 21st century, New Hampshire remains one of the few states that collects a personal income tax based solely on dividend and interest income; a general sales tax is not collected. This low tax plan helps attract new businesses to the area but leaves fewer funds for such government services as education.

In May, 2003, one of New Hampshire's most famous landmarks, the Old Man in the Mountain (also known as the Great Stone Face), was lost. Erosion, which had originally carved the semblance, caused the symbol to fall away from Profile Mountain.