Flat-Fee Tax Preparation for New Hampshire Residents

New Hampshire is phasing out its Interest and Dividends Tax — the rate was 3% in 2024 and will be fully eliminated after 2026, leaving NH with no personal income tax on wages or capital gains

NH's Business Profits Tax (BPT) applies to businesses with gross receipts over $92,000 at a rate of 7.5% — this is the primary business income tax in NH

The NH Business Enterprise Tax (BET) is an additional tax on compensation, interest, and dividends paid by NH businesses — a gross receipts-style tax at 0.55% that applies separately from the BPT

NH has no general sales tax and no state income tax on wages — making it attractive for residents who work in NH

NH commuters who work in Massachusetts face MA income tax on MA-source wages — NH has contested this as unconstitutional for remote workers, with mixed results

NH real estate transfer tax is $0.75 per $100 of value (0.75%) — paid by both buyer and seller at 0.75% each (total 1.5% of sale price)

NH does not impose a state estate or inheritance tax — favorable for estate planning

NH's high property taxes (among the highest in the nation) are a major consideration for real estate investors, as NH has no income tax to fund government services

New Hampshire Real Estate Tax

New Hampshire's real estate market benefits from significant demand from MA commuters and remote workers seeking to escape MA income tax. NH's high property taxes are the trade-off for no income tax — investors must factor these into rental property economics. The 1.5% total real estate transfer tax (split buyer/seller) is a moderate transactional cost.

New Hampshire Business Tax

NH businesses must navigate both the Business Profits Tax and the Business Enterprise Tax — creating a two-layer business tax obligation that is sometimes overlooked by new NH business owners. The BET applies to compensation paid as well as returns on capital, making it broader than a traditional income tax. With the I&D tax phasing out, NH is moving toward a true no-income-tax state for individuals.

Does New Hampshire have an income tax?

New Hampshire taxes interest and dividend income at a rate that is phasing down to zero by 2027. NH does not tax wages, salaries, self-employment income, or capital gains. After the I&D tax is fully eliminated, NH will have no individual income tax. However, NH businesses owe the Business Profits Tax (7.5%) and Business Enterprise Tax (0.55%) on business income.

I live in New Hampshire but work in Massachusetts — do I owe MA tax?

Yes. If you physically work in Massachusetts (commute to a MA office), you owe MA income tax on those wages. NH attempted to block MA from taxing NH residents who worked remotely for MA employers during COVID-19, but the Supreme Court declined to hear the case. If you work remotely from NH for a MA employer and are never physically present in MA, whether MA can tax those wages is a nuanced question that depends on specific facts — this should be evaluated carefully.

What is the New Hampshire Business Enterprise Tax?

The NH BET is a tax of 0.55% on the 'enterprise value tax base,' which includes compensation paid to employees, interest paid to creditors, and dividends paid to owners. It applies to businesses with gross receipts over $222,000 or enterprise value tax base over $111,000. The BET is a credit against the BPT — so for businesses with significant BPT liability, the BET creates a minimum tax floor. It effectively taxes the returns to all factors of production in the business.

What makes New Hampshire taxes unique?

New Hampshire's combination of no wage income tax, no capital gains tax, no estate tax, no sales tax, and the phasing-out I&D tax is moving NH toward one of the most favorable individual tax environments in the Northeast. The trade-off is very high property taxes and the business-level BPT and BET. For business owners, the dual business tax creates compliance complexity that is often underestimated.