Business Taxes in New Hampshire
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. Businesses that make $92,000 or less in gross income don’t have to pay this tax or file a BPT return. Out-of-state businesses that sell or lease tangible personal property in New Hampshire may create nexus for business profits tax.
Corporate Income Tax and Gross Receipts Tax
In addition to the corporate income tax, New Hampshire has a gross receipts tax applicable to most businesses. A home business grossing $55,000 a year pays $4,675.00. A small business earning $500,000 a year pays $4,250.00. A corporation earning $10,000,000 a year pays $850,000.00.
Exemption for Nonprofit Entities
Certain nonprofit entities registered in New Hampshire may be able to exempt some or all of their qualifying income from New Hampshire and federal income taxes.
Tax Filing Deadlines and Regulations
If you operate a business within the state of New Hampshire, you’ll have to pay taxes on any profits that you make. The current BPT rate in New Hampshire is 7.7%. For partnerships, the business profits tax return is due by the 15th day of the third month after the fiscal year ends. The due date for all corporation returns and sole proprietorship returns is the 15th day of the fourth month after the end of the fiscal year.
New Hampshire Business Tax Overview
The Business Profits Tax is imposed upon all business organizations which carry on any business activity in New Hampshire. Corporate income tax in New Hampshire is applied to the gross taxable income. This is typically applied to most corporations and business’s registered or conducting business within the state. New Hampshire imposes both a business profits tax and a business enterprise tax, applying to almost every form of business in the state.
Income Tax Regulations in New Hampshire
New Hampshire is one of the nine U.S. states that do not impose any income tax on the wages and salaries of employees. It also does not have any state sales tax. However, a 5% tax is imposed on the interests and dividends earned by individuals.
Sales Tax Exemption and Corporate Income Tax
New Hampshire does not have a sales tax. While certain types of businesses need to pay meals and rentals tax, the state does not levy local income taxes. Additionally, New Hampshire has a 7.50% corporate income tax rate and only taxes interest and dividend income at the personal level.
Taxes for Limited Liability Companies (LLCs)
LLCs in New Hampshire are taxed as pass-through entities, with LLC members paying federal income tax on their filings. The tax classification of an LLC depends on the number of members, and LLCs are not subject to corporate state income tax but may be liable for state-level profits tax and business enterprise tax.
New Hampshire LLC Tax Filing
- Single-member LLCs: LLCs are subject to pass-through taxation, with an annual return and filing fee.
- Federal Tax Returns: Single-member LLCs file Form 1040, while multi-member LLCs file Form 1065.
- Tax Obligations: LLCs in New Hampshire pass profits and losses to members for reporting at the personal level. State-level taxes include business profits, enterprise taxes, with some others applicable until 2027 phaseout.