New Hampshire Business Taxes at a Glance
New Hampshire has no general sales tax and no tax on wages. Since 2025, it no longer taxes interest and dividends either. But New Hampshire businesses, including many sole proprietors and partnerships, pay two business-level taxes that are unusual among the states, and hospitality businesses collect a statewide tax on meals, rooms, and car rentals. BOMCAS helps New Hampshire businesses and residents keep these filings in order.
The Interest and Dividends Tax Is Repealed
New Hampshire's Interest and Dividends Tax was repealed for tax periods beginning on or after January 1, 2025. Residents do not file a 2025 Interest and Dividends Tax return or make 2025 estimated payments.
The repeal does not erase earlier years. Returns and payments for 2024 and prior periods were still required, and those periods remain open to audit and collection under the usual rules. If you missed an earlier filing, it is still worth resolving.
Business Profits Tax
The Business Profits Tax (BPT) applies to business organizations with gross business income above a filing threshold. Unlike most state income taxes, the BPT applies to sole proprietorships, partnerships, and LLCs as well as corporations. New Hampshire taxes the business itself, not just its owners.
Because of this, the BPT allows a deduction for reasonable compensation paid to owners of sole proprietorships and partnerships, for the work they do in the business. That deduction is often one of the most important figures on the return, and the Department of Revenue Administration reviews whether it is reasonable. Multistate businesses apportion income to New Hampshire.
Business Enterprise Tax
The Business Enterprise Tax (BET) is a separate tax on the enterprise value tax base: generally the total of compensation paid, interest paid, and dividends paid by the business. It applies once gross receipts or the enterprise value tax base exceed set thresholds. BET paid can be credited against BPT, and unused credits can carry forward for a limited number of years.
The combination means a business can owe BET even when it has little profit, because the base includes wages. We prepare both returns together, track the BET credit carryforward, and plan quarterly estimates.
Selling a New Hampshire Business
Because the Business Profits Tax applies at the business level, gains from selling business assets are generally part of the business's income for BPT purposes, including when a sole proprietor or partnership sells. Owners planning a sale or retirement should look at the New Hampshire tax on the gain, not just the federal tax. We help estimate the BPT effect of a sale, review how the purchase price is allocated, and prepare the final returns.
Meals and Rooms (Rentals) Tax
New Hampshire has no general sales tax, but it does tax meals, hotel and short-term room rentals, and motor vehicle rentals through the Meals and Rooms (Rentals) Tax. Restaurants, caterers, hotels, inns, and short-term rental hosts generally need an operator's license and file returns regularly. Some short-term rental platforms collect the tax for hosts, but owners should confirm what is and is not covered.
For lakes region and White Mountains rental owners, and for restaurants across the state, we register the business, prepare returns, and reconcile tax collected to the books.
No Sales Tax in New Hampshire, But Not Elsewhere
New Hampshire retailers do not collect sales tax on their in-state sales. But a New Hampshire business that sells to customers in other states may have to register and collect those states' sales taxes once it crosses their economic nexus thresholds. This catches many online sellers and manufacturers by surprise. We help New Hampshire businesses track sales by destination state and register where required.
Living in New Hampshire, Working in Massachusetts
Many New Hampshire residents work in Massachusetts. Massachusetts taxes nonresidents on wages earned for work performed there, so commuters file Massachusetts nonresident returns, and employers often withhold Massachusetts tax. Because New Hampshire has no wage tax, there is no New Hampshire credit to offset it.
Remote and hybrid work makes the allocation important. Days actually worked in New Hampshire are generally not Massachusetts-source wages, so good records of where work was performed matter. We prepare Massachusetts nonresident returns, review allocations, and help employees and employers set withholding correctly.
Real Estate Transfer Tax
New Hampshire's real estate transfer tax applies to the sale, granting, and transfer of real property, and it is generally paid by both the buyer and the seller. Transfers of interests in entities that own real estate can also be taxable. Real estate investors and holding companies should account for it when planning purchases and sales.
Payroll Without State Withholding
New Hampshire employers do not withhold a state income tax. They register with New Hampshire Employment Security for unemployment insurance and file quarterly reports. New Hampshire's paid family and medical leave program is voluntary for private employers. Employers with workers in Massachusetts may also need to register there for withholding and that state's paid leave program. We run payroll for both situations.
Bookkeeping for New Hampshire Businesses
New Hampshire's business taxes depend on numbers that are not always tracked closely: owner compensation, interest paid, and dividends paid for the BET; gross business income for the BPT threshold; and taxable meals or rentals for the Meals and Rooms Tax. We set up the books to capture each one and produce monthly or quarterly financial statements.
Next Steps With BOMCAS in New Hampshire
Owners preparing BPT and BET returns, restaurants and rental hosts filing Meals and Rooms Tax, and commuters filing in Massachusetts can contact BOMCAS for a remote review. Pages for individual New Hampshire cities and services will follow under this section. Visit the BOMCAS home page or our United States services. This page is general information and does not decide how the rules apply to you.
Talk to BOMCAS About Your New Hampshire Taxes
Have a question about your New Hampshire filings, payroll or bookkeeping? Contact BOMCAS or use the contact form below, and we will get back to you as soon as possible. You can also browse all United States services.