New Hampshire Basic Business Taxes 2011
New Hampshire's economic development, finance and tax organizations provide a range of incentive programs to initiate new business and commercial investment. Specific programs include no sales and use tax, no personal income tax, and no capital gains tax.
Area Development Research Desk (March 2011)
Business profits tax:
A tax is assessed on income from conducting business activity within the state of New Hampshire. The tax rate is 8.5 percent for taxable periods ending on or after July 1, 2001. For multistate businesses, income is apportioned using factors of sales, payroll, and property. Organizations operating a unitary business must use combined reporting. Organizations with gross receipts in excess of $50,000 must file a return.
Business enterprise tax:
Effective for tax years ending on or after July 1, 2001, every business enterprise with gross receipts exceeding $150,000 is assessed 0.75 percent tax on their "enterprise-value tax base." This tax base consists of the sum of all compensation paid or accrued, interest paid or accrued, and dividends paid - after special adjustments and apportionment.
For companies with a business profits tax liability, any business enterprise tax paid will receive a dollar-for-dollar credit.
Sales and use taxes:
The state levies no general sales or use tax.
New Hampshire has no general personal income tax.
Capital Gains Tax:
New Hampshire has no capital gains tax.
All real property, unless specifically exempted, is subject to property taxation at the same mill rate. There is no difference made between residential or commercial properties. The only items of personal property taxed are private boats and certain unregistered vehicles such as forklifts and golf carts. Property is appraised and taxed locally. Public utilities, most growing wood and timber, and private boats are taxed under separate provisions.
Property tax exemptions:
No property tax is levied on inventory accounts.
Machinery and equipment, including certain ski area equipment, are exempt from property taxation.
Communication service tax:
A 7 percent tax is assessed on gross service charges for communication services originating or terminating in the state of New Hampshire.
Insurance tax is equal to 1.25 percent of premiums on policies that insure risks within the state. The tax also applies to certain nonprofit health insurers and dental insurers.
New Hampshire State Contact:
New Hampshire Business Resource Center
New Hampshire Department of Resources and Economic Development
P.O. Box 1856
Concord, NH 03301-1856
(603) 271-2591 Fax: (603) 271-6784
Incentive and tax information is provided to Area Development by each state's economic development or commerce agency for information purposes only and is subject to revision at any time by the state government. Please contact the state agency directly for full requirements and offerings.