New Hampshire Tax Law: State Taxes and Legal Obligations

New Hampshire operates one of the most distinctive tax structures among the 50 states, imposing no broad-based personal income tax on wages and no general sales tax. This page covers the principal state taxes administered under New Hampshire law, the regulatory agencies and statutes governing each, the legal obligations imposed on individuals and businesses, and the structural boundaries that separate state jurisdiction from federal tax authority.

Definition and scope

New Hampshire's tax framework is governed primarily by the New Hampshire Revised Statutes Annotated (RSA), with the New Hampshire Department of Revenue Administration (DRA) serving as the principal state agency for tax assessment, collection, and enforcement. The DRA operates under RSA Title V, which consolidates taxation authority across business, property, and select income categories.

The state's tax system does not include a wage income tax or a retail sales tax — a structural feature that distinguishes New Hampshire from 45 other states that impose at least one of these two taxes (Tax Foundation, New Hampshire State Tax Profile). However, this does not mean New Hampshire is tax-free. The state levies 8 distinct taxes administered by the DRA, covering business profits, business enterprise, interest and dividends, real estate transfer, meals and rentals, communications services, tobacco, and the legacy Interest and Dividends Tax (I&D).

Scope and coverage limitations: This page addresses taxes imposed under New Hampshire state law and administered by the DRA. Federal income tax, FICA obligations, and IRS enforcement fall outside this scope. Municipal property taxes, while significant in New Hampshire's revenue structure, are set and administered at the local level by individual municipalities rather than the DRA and are therefore not addressed in full detail here. Out-of-state entities may face additional nexus and apportionment obligations under RSA 77-A.

How it works

The DRA administers tax obligations through a filing and assessment cycle. The following breakdown identifies the major taxes and their governing statutes:

1. Business Profits Tax (BPT) — RSA 77-A. A tax on the taxable business profits of corporations, partnerships, limited liability companies, and sole proprietorships with gross receipts exceeding $92,000 (as indexed). The rate is 7.5% as of tax periods ending on or after December 31, 2023 (NH DRA, Business Profits Tax).
2. Business Enterprise Tax (BET) — RSA 77-E. A tax on the enterprise value tax base, which includes compensation paid, interest paid, and dividends paid. The rate is 0.55% and applies to businesses with gross receipts over $281,000 or an enterprise value tax base over $281,000 (NH DRA, Business Enterprise Tax).
3. Interest and Dividends Tax (I&D) — RSA 77. Historically applied to interest and dividend income at 5%. Under RSA 77:4-f, this tax was scheduled for phased elimination, reaching 3% for tax year 2024 and full repeal for tax years beginning January 1, 2025.
4. Meals and Rentals Tax — RSA 78-A. A 8.5% tax on meals, room rentals, and motor vehicle rentals. Operators collect this tax from customers and remit it to the DRA.
5. Real Estate Transfer Tax — RSA 78-B. Imposed at $0.75 per $100 of the sale price on transfers of real property, paid by both buyer and seller (total $1.50 per $100).
6. Communications Services Tax — RSA 82-A. Applied to two-way communications services at 7%.
7. Tobacco Tax — RSA 78. Levied on tobacco products sold in the state.
8. Property Tax (Education Tax) — RSA 76:3. A statewide education property tax is levied on residential and commercial property, collected locally but governed by state formula.

For the broader legal infrastructure that frames these obligations, the regulatory context for the New Hampshire legal system provides essential background on how state agencies derive and exercise statutory authority.

Common scenarios

Business filing obligations: A limited liability company conducting business in New Hampshire with gross receipts above the BPT threshold must file Form BPT-1 annually. If the same entity's enterprise value tax base exceeds the BET threshold, Form BET must also be filed. Both returns are due on the 15th day of the third month after the close of the fiscal year.

Real estate transactions: A residential property sale in New Hampshire triggers the Real Estate Transfer Tax under RSA 78-B at the time of deed recording. The buyer and seller each bear half the total transfer tax. Transfers between spouses, or gifts of property, may qualify for exemptions enumerated in RSA 78-B:2.

Meals and rentals operators: A restaurant or short-term rental operator registered in New Hampshire must collect the 8.5% Meals and Rentals Tax, file monthly returns (or quarterly if DRA grants reduced frequency), and remit collected taxes to the DRA. Failure to remit collected taxes exposes operators to interest and penalties under RSA 21-J:33.

Interest and dividends filers: Individuals with qualifying interest or dividend income above the $2,400 exemption threshold (RSA 77:5) were required to file NH Form DP-10 annually. With the I&D Tax's scheduled repeal, this obligation phases out by tax year 2025.

Decision boundaries

The primary structural distinction in New Hampshire tax law is between business-level taxation and individual-level taxation. The BPT and BET apply at the entity level, regardless of whether profits are distributed. The I&D Tax applied to individuals, trusts, and estates receiving passive income — not to wage earners, which is a common point of confusion for new residents.

A secondary boundary exists between state tax jurisdiction and federal obligations. New Hampshire's lack of a wage income tax does not reduce federal income tax liability. Individuals and businesses remain subject to IRS jurisdiction under the Internal Revenue Code, separate from any DRA obligation.

Third, nexus rules under RSA 77-A:1 determine which out-of-state businesses must file New Hampshire returns. An out-of-state entity with physical presence, employees, or economic nexus in New Hampshire (gross receipts from NH customers exceeding applicable thresholds) may be subject to BPT and BET.

For a comprehensive overview of how tax law fits within New Hampshire's broader statutory and legal landscape, see the New Hampshire Legal Services Authority homepage.

References

• New Hampshire Department of Revenue Administration (DRA)
• New Hampshire RSA Title V – Taxation (NH General Court)
• RSA 77-A – Business Profits Tax (NH General Court)
• RSA 77-E – Business Enterprise Tax (NH General Court)
• RSA 77 – Interest and Dividends Tax (NH General Court)
• RSA 78-A – Meals and Rentals Tax (NH General Court)
• RSA 78-B – Real Estate Transfer Tax (NH General Court)
• Tax Foundation – New Hampshire State Tax Profile
• NH DRA Business Profits Tax Information Page
• NH DRA Business Enterprise Tax Information Page