Business Tax in New Hampshire: Complete Guide 2026
Data Notice: Figures, rates, and statistics cited in this article are based on the most recent available data at time of writing and may reflect projections or prior-year figures. Always verify current numbers with official sources before making financial, medical, or educational decisions.
Business Tax in New Hampshire: Complete Guide 2026
Tax information is for educational purposes only and does not constitute tax advice. Consult a licensed tax professional for your specific situation.
New Hampshire occupies a unique position in the business tax landscape: it has no sales tax and no general personal income tax, but it imposes two significant business-level taxes — the Business Profits Tax (BPT) and the Business Enterprise Tax (BET). Together, these create an effective tax system that taxes business income and economic activity, making New Hampshire’s “no income tax” reputation somewhat misleading for business owners. Understanding how these two taxes interact is essential for anyone operating a business in the Granite State.
New Hampshire Business Tax Overview (2026)
| Tax Type | Rate / Structure |
|---|---|
| Business Profits Tax (BPT) | ~7.50% (has been gradually decreasing) |
| Business Enterprise Tax (BET) | ~0.55% |
| Personal income tax (general) | None |
| Interest and dividends tax | Being phased out / eliminated |
| Sales tax | None |
| Property tax | ~1.60% to ~2.20% effective rate |
| Meals and rooms tax | ~8.50% |
| LLC registration fee | ~$100/year |
Business Profits Tax (BPT)
The BPT is New Hampshire’s primary business income tax. It applies to every business organization (corporation, partnership, LLC, sole proprietorship) with gross business income exceeding ~$92,000 per year:
BPT Rate History and Projection
| Year | BPT Rate |
|---|---|
| 2018 | ~8.20% |
| 2020 | ~7.70% |
| 2022 | ~7.60% |
| 2024 | ~7.50% |
| 2026 (projected) | ~7.50% |
New Hampshire has been gradually reducing the BPT rate, with a target of lower rates in coming years. However, at ~7.50%, the rate remains competitive with corporate income taxes in neighboring states.
BPT Filing Threshold
| Gross Business Income | BPT Required? |
|---|---|
| Under ~$92,000 | No filing required |
| ~$92,000 or more | Must file BPT return |
BPT Calculation
The BPT is computed on net business income (gross income minus deductible expenses), similar to a corporate income tax. Multi-state businesses apportion income to New Hampshire using a three-factor formula based on property, payroll, and sales.
Business Enterprise Tax (BET)
The BET is a supplementary tax based on the value of a business’s total enterprise value tax base, which includes:
- Compensation paid to employees (wages, salaries, benefits)
- Interest paid
- Dividends paid
The BET is essentially a tax on the total economic activity (value-added) of the business, rather than on profits:
| Parameter | Amount |
|---|---|
| BET rate | ~0.55% |
| Filing threshold | ~$281,000 in gross receipts or enterprise value base exceeding ~$140,000 |
BET Credit Against BPT
The BET is fully creditable against the BPT. This means businesses do not pay both taxes in full. If your BPT exceeds your BET, you pay the BPT (and the BET credit offsets part of it). If your BET exceeds your BPT, you pay the BET, and the excess can be carried forward as a credit.
In practice, the BET functions as a minimum tax — businesses always owe at least the BET, even in unprofitable years, because it is based on compensation and interest rather than profits.
How the BPT and BET Interact
| Scenario | BPT | BET | Net Tax Owed |
|---|---|---|---|
| Profitable business (BPT > BET) | $10,000 | $3,000 | $10,000 (BET credit offsets $3,000) |
| Break-even business (BPT < BET) | $2,000 | $5,000 | $5,000 (excess BET, $3,000 carried forward) |
| Unprofitable business (BPT = $0) | $0 | $4,000 | $4,000 (all BET, full amount carried forward) |
The interaction ensures that businesses always pay at least the BET regardless of profitability.
Comparison to New England Neighbors
| State | Corporate Tax | Personal Income Tax | Sales Tax | Business-Level Tax |
|---|---|---|---|---|
| New Hampshire | ~7.50% BPT | None (general) | None | ~0.55% BET |
| Massachusetts | ~8.00% | ~5.00% flat | ~6.25% | None |
| Vermont | ~6.00% to ~8.50% | Up to ~8.75% | ~6.00% | None |
| Maine | ~3.50% to ~8.93% | Up to ~7.15% | ~5.50% | None |
| Connecticut | ~7.50% | Up to ~6.99% | ~6.35% | None |
New Hampshire’s BPT rate is competitive with its neighbors, and the absence of sales tax and general personal income tax provides meaningful advantages. However, the BET adds a layer that other states do not have.
Interest and Dividends Tax Phase-Out
New Hampshire historically taxed interest and dividend income at ~5.00%. This tax has been gradually phased out:
| Year | Rate |
|---|---|
| 2023 | ~4.00% |
| 2024 | ~3.00% |
| 2025 | Eliminated |
| 2026 | $0 |
As of 2025, New Hampshire no longer taxes interest and dividend income, making it a true no-personal-income-tax state for the first time.
Tips for Managing New Hampshire Business Tax
-
Understand the BET as a minimum tax. Even unprofitable businesses owe the BET. Budget for this minimum tax based on your payroll, interest, and dividend payments.
-
Maximize the BET credit against BPT. Ensure you are properly claiming the BET credit on your BPT return. Unused BET credits can be carried forward for up to five years.
-
Monitor rate reductions. New Hampshire has been on a multi-year path of reducing the BPT rate. Plan multi-year tax strategies with anticipated further reductions in mind.
-
Optimize apportionment for multi-state businesses. If you operate in multiple states, properly apportioning income to New Hampshire using the three-factor formula can reduce your BPT liability.
-
Factor in property taxes. New Hampshire’s property tax rates are among the highest in the nation (~1.60% to ~2.20%), compensating for the absence of sales and income taxes. Include property tax in your total cost analysis.
-
Take advantage of the interest and dividends tax elimination. With this tax now eliminated, New Hampshire is fully competitive as a no-personal-income-tax state for investors and business owners receiving passive income.
Key Takeaways
- New Hampshire imposes a ~7.50% Business Profits Tax (BPT) and a ~0.55% Business Enterprise Tax (BET) on business activity
- The BET serves as a minimum tax — businesses owe it even when unprofitable, based on payroll and interest
- BET is creditable against BPT, so businesses do not pay both in full
- New Hampshire has no sales tax and has eliminated its interest and dividends tax, making it a true no-personal-income-tax state
- The BPT rate has been gradually decreasing over recent years
- High property taxes partially offset the absence of sales and personal income taxes
Next Steps
- Compare with Massachusetts at Taxes in Massachusetts: State Tax Guide 2026
- Explore no-estate-tax advantage at Taxes in New Hampshire: State Tax Guide 2026
- See low-tax alternatives at Business Tax in Wyoming 2026
- Read the small business guide at Small Business Tax Guide
- Get professional help: Hire a Tax Professional