With no sales or earned income taxes for business owners to worry about, it’s easy to see why the state of New Hampshire ranks sixth on the Tax Foundation’s list of tax-friendly states for businesses. But that doesn’t mean aspiring entrepreneurs in this state have nothing to worry about.
Filing and paying taxes is an important responsibility—one you’ll need to keep up with if you want your business venture to be successful. So, here’s what you need to know about the state’s business taxes, including:
What business taxes do you pay in New Hampshire?
When starting a business, most entrepreneurs already expect to pay taxes on the income their venture brings in. But in New Hampshire, your tax obligations would look much different from other states.
For one, New Hampshire doesn’t levy any sales tax or franchise tax on businesses within the state. Companies pay taxes on profits over a certain amount, plus unemployment taxes (if they hire employees) and any industry-specific or local taxes that apply specifically to them.
Additionally, New Hampshire taxpayers are only taxed on their interest and dividend income rather than on all their earned wages.
Now that you know what to expect when it comes to New Hampshire’s business taxes, let’s take a look at how to file and pay each one.
New Hampshire interest and dividends tax
In many states, pass-through entities—such as sole proprietorships, partnerships, and limited liability companies (LLCs)—typically don’t pay income taxes on the entity level. Instead, they’re passed on to their owners, partners, or members, who pay taxes on their share of the business profits on their personal income tax returns.
Things work a bit differently in New Hampshire, though. Individual taxpayers and certain entities—including LLCs and partnerships—only pay an interest and dividends (I&D) tax on their annual gross interest and dividend income.
The current I&D tax is 5% of all gross interest and dividend income over $2,400 (or $4,800 for joint filers) made in the tax year. At the end of 2023, the state will lower this rate to 4% as it begins to phase out this tax entirely.
How to file and pay
Interest and dividends tax returns (Form DP-10) are due by the 15th day of the fourth month following the end of the fiscal year. If your business follows the calendar year, your due date is April 15.
File your return online through Granite Tax Connect (GTC), New Hampshire’s online portal, to manage nearly all your business’s tax needs. Note that you’ll need to register your business on the website in order to file and pay your taxes using this system. But if you prefer to file your returns by mail, send your tax form and any payment to the address below:
PO Box 637
Concord, NH 03302-063
All taxpayers and businesses that pay the I&D tax must make quarterly estimated tax payments for the following year unless their expected tax liability for that year is less than $500. These payments are due by the 15th day of the fourth, sixth, ninth, and 12th months of the fiscal year.
Make these payments online via the GTC portal or submit them by mail (along with payment voucher Form DP-10-ES) to the following address:
PO Box 1265
Concord, NH 03302-1265
In addition to these filing requirements, S corporations in New Hampshire must file a separate information return (Form DP-9) to report distributions made to residents in the state. These returns are due May 1 and can be submitted via the GTC or by mail to the address above.
To learn more about the I&D tax, visit the New Hampshire Department of Revenue Administration website. You can also review the I&D tax form instructions for more guidance on filing the I&D tax return.
New Hampshire business profits tax
Companies that operate in New Hampshire are charged a business profits tax (BPT) on any income from business conducted in the state.
In 2023, the BPT rate is 7.6% of all New Hampshire gross income over $92,000. This rate will drop to 7.5% after the year ends.
Businesses that make $92,000 or less in gross income don’t have to pay this tax or file a BPT return.
How to file and pay
For partnerships, the business profits tax return (Form NH-1065) is due by the 15th day of the third month after the fiscal year ends—or March 15 for calendar filers.
The due date for all corporation returns (Form NH-1120) and sole proprietorship returns (Form NH-1040) is the 15th day of the fourth month after the end of the fiscal year, or April 15 for calendar year filers.
Companies that expect their BPT liability to be over $200 for the tax year are required to make estimated tax payments in 25% increments each quarter. These payments must be made by the 15th day of the fourth, sixth, ninth, and 12th months of the fiscal year.
You can file your BPT returns and make any tax payments online via the GTC portal.
For more information on the New Hampshire business profits tax, review the list of frequently asked BPT questions from the Department of Revenue Administration.
New Hampshire business enterprise tax
In addition to the business profits tax, some companies in New Hampshire must also pay the business enterprise tax (BET). This tax is calculated based on the “enterprise value tax base” of a business—the sum of all compensation, interest, and dividends paid or accrued by the business—or the company’s gross receipts.
More specifically, businesses must pay the BET if their enterprise value tax base or gross margins exceed $281,000.
Currently, the BET rate is 0.55%.
How to file and pay
Business enterprise tax returns (Form BET) have the same due date as the BPT return:
- 15th day of the third month of the fiscal year for partnerships
- 15th day of the fourth month of the fiscal year for sole proprietors and corporations
Additionally, all New Hampshire businesses are required to file Form BT-Summary by mail or via GTC—even if you don’t meet the BET threshold.
If your company expects its BET liability to exceed $260, you’re required to make quarterly estimated tax payments. These are due in 25% increments by the 15th day of the fourth, sixth, ninth, and 12th months of the fiscal year.
All BET returns and payments can be submitted online via the GTC.
Review the list of frequently asked BET questions from the Department of Revenue Administration for details on the New Hampshire business enterprise tax.
Unemployment insurance tax
Employers in New Hampshire are also subject to a state unemployment insurance tax. This tax funds unemployment benefits for eligible workers who leave the company.
A company’s unemployment tax liability is determined in part by each employee’s taxable income. New employers are taxed 2.7% on the first $14,000 of each employee’s wages during their first year of operation. After that, businesses are assigned a new tax rate each September.
How to file and pay
New Hampshire businesses file unemployment taxes with the New Hampshire Department of Employment Security. To do so, employers must first register their business with the New Hampshire Internet Unemployment Tax and Wage Report & New Hire Reporting System.
Companies will use this same online system to file and pay their state unemployment taxes each quarter. All quarterly reports and tax payments must be submitted by April 30, July 31, October 31, and January 31. Employers registered with the state must file these reports quarterly, even if they have no wages to report during that taxable period.
To learn more about the New Hampshire unemployment tax, review the list of frequently asked employer questions from the Department of Employment Security.
Aside from the business taxes assessed at the state level, companies may be subject to additional taxes based on their location, products, services, or business activities.
Although there are no local sales taxes to be aware of, many municipalities in the state levy a property tax. So, this is something to keep in mind if your business owns or rents property in the state.
You may also be taxed for the products or services your business offers. In particular, taxes are levied on sales of beer, cigarettes, gasoline, and more.
Because these taxes depend on the nature and location of your business, you should talk to your tax advisor or accountant to determine which ones you’re responsible for.
New Hampshire business tax breakdown by business type
To help you stay on top of your state business tax obligations, below, we’ve included a chart that breaks down the different types of taxes each business entity can expect to pay. Keep in mind that pass-through entities don’t pay federal income taxes themselves—their owners pay these taxes on their personal tax returns instead.
|Business type||Interest and dividends tax||Business profits tax||Business enterprise tax||Unemployment tax||Federal income taxes|
|C corporation||No||Yes, if you meet the BPT threshold||Yes, if you meet the BET threshold||Yes, if you hire employees||Yes|
|S corporation||No||Yes, if you meet the BPT threshold||Yes, if you meet the BET threshold||Yes, if you hire employees||Yes (pass-through)|
|LLC||Yes, if they meet the income threshold||Yes, if you meet the BPT threshold||Yes, if you meet the BET threshold||Yes, if you hire employees||Yes (pass-through)|
|Partnership||Yes, if they meet the income threshold||Yes, if you meet the BPT threshold||Yes, if you meet the BET threshold||Yes, if you hire employees||Yes (pass-through)|
|Sole proprietorship||Yes, if they meet the income threshold||Yes, if you meet the BPT threshold||Yes, if you meet the BET threshold||Yes, if you hire employees||Yes, by way of individual income tax|
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