NH
New Hampshire Small Business Tax Guide
Understand NH taxes, common filings, and recordkeeping—educational overview, not tax advice.
Disclaimer: This page is educational content only. Tax laws change, and your situation may differ. It is not legal, tax, or financial advice. Consult a qualified professional licensed in New Hampshire before making filing or planning decisions.
Tax landscape for small businesses
New Hampshire small business taxes operate under a unique structure: the state has no income tax on wages or salaries, and the tax on interest and dividends was fully phased out in 2025. There is also no state sales tax. However, businesses face two significant entity-level taxes — the Business Profits Tax (BPT) at 7.5% on net business income exceeding $50,000 and the Business Enterprise Tax (BET) at 0.55% on the enterprise value tax base, which includes compensation, interest, and dividends paid.
The BPT and BET combination creates a meaningful tax obligation for businesses despite the absence of a personal income tax. The BET functions as a floor — you pay the higher of the two taxes, not both, because BET paid generates a credit against your BPT liability. This structure means that even businesses with low or no net profits still owe some tax based on their compensation and interest payments through the BET.
New Hampshire relies heavily on property taxes to fund local government, schools, and municipal services, resulting in some of the highest property tax rates in the nation. Effective rates routinely exceed 1.5%–2.0% of market value in many towns. The Department of Revenue Administration handles all state-level tax filings. The state also levies an 8.5% Meals and Rooms Tax on restaurant meals, hotel rooms, and car rentals, which functions as a targeted consumption tax. New Hampshire's lack of broad-based income and sales taxes makes it attractive for certain business models, but the high property taxes and business-level taxes require careful planning. Incentive programs are limited compared to other states, so businesses should focus on maximizing BPT deductions and managing property tax exposure.
Tax overview
Approximate categories many small businesses review with an advisor. Rates and rules vary by year, industry, and entity—verify with official sources.
| Tax type | Typical rate / basis | Notes |
|---|---|---|
| Income Tax | None on wages | No tax on earned income; interest and dividends tax phased out in 2025. |
| Sales Tax | None | No state or local sales tax; Meals and Rooms Tax of 8.5% applies to dining and lodging. |
| Business Profits Tax | 7.5% | Applies to business net income exceeding $50,000. |
| Business Enterprise Tax | 0.55% | Based on total compensation, interest, and dividends paid; BET credits can offset BPT. |
Filing requirements
Common themes—not a complete checklist for your business.
Business Profits Tax (BPT) return
Businesses with gross income over $50,000 must file BPT returns with the Department of Revenue Administration. The return is due on the 15th day of the fourth month after the tax year ends (April 15 for calendar-year filers). The BPT starts with federal taxable income and applies New Hampshire-specific modifications.
Business Enterprise Tax (BET) return
Filed alongside the BPT return using the same form. BET is calculated on the enterprise value tax base — the sum of compensation, interest, and dividends paid by the business. BET paid generates a credit that offsets your BPT liability, so you generally pay the higher of the two taxes, not both.
Meals and Rooms Tax filing
Businesses serving meals, providing lodging, or renting motor vehicles must register with the Department of Revenue Administration and collect the 8.5% Meals and Rooms Tax. Returns are filed monthly, and payment is due by the 15th of the following month. Operators keep a small commission on tax collected as compensation.
No individual income tax filing
New Hampshire does not require individual income tax returns for wages, salaries, or self-employment income. Owners only file federal returns for personal income purposes. All state-level taxation of business income is handled through the BPT and BET at the entity level.
Estimated BPT/BET payments
If your combined BPT and BET liability exceeds $200 for the tax year, you must make quarterly estimated payments. Installments are due on the 15th of the fourth, sixth, ninth, and twelfth months of the tax year. Underpayment penalties apply if you do not meet safe harbor thresholds.
Common deductions & write-offs
Often discussed at the federal level; state conformity differs.
- Business expenses deductible against the BPT — follows federal rules for most ordinary and necessary business deductions
- Home office expenses on your federal return (no state income tax return to deduct against)
- Self-employed health insurance premiums deductible at the federal level
- Retirement plan contributions (SEP-IRA, solo 401(k), SIMPLE IRA) to reduce federal taxable income
- BET credit applied against BPT liability to prevent double taxation on the same business activity
- Depreciation and Section 179 deductions on business equipment — New Hampshire generally conforms to federal depreciation rules for BPT purposes
- Business vehicle expenses using the standard mileage rate or actual expenses method on your federal return
- Professional development and continuing education costs related to your trade or profession
Practical tips
- While there is no personal income tax, the BPT/BET combination can effectively tax business profits at rates comparable to many income-tax states — model your total business tax burden carefully.
- New Hampshire property taxes are among the highest nationally, often exceeding 2% of market value — this is a major cost factor for businesses owning real estate or considering a purchase.
- The BET credit offsets BPT liability, so you pay the higher of the two taxes, not both combined. Understand this credit mechanism to avoid overpaying estimated taxes.
- No sales tax simplifies pricing and compliance, but remember the 8.5% Meals and Rooms Tax if your business involves dining, lodging, or vehicle rentals.
- With no broad-based income or sales tax, New Hampshire relies heavily on property taxes and business taxes — factor all three levies (BPT, BET, property tax) into your total cost analysis.
- The $50,000 gross income threshold for BPT means most active businesses will need to file — even if your net income is low, your gross income may trigger the filing requirement.
- Maximize deductions against the BPT by ensuring all qualifying business expenses are properly documented, since BPT follows federal deduction rules for most categories.
- Consider the impact of New Hampshire's tax structure on your entity choice — sole proprietors, partnerships, LLCs, and corporations all face BPT and BET obligations differently.
Related Resources
Frequently asked questions
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