New Hampshire Business Profits Tax 2023 - 2024

The state of New Hampshire has two different business taxes, the Business Profits Tax (BPT) and the Business Enterprise Tax (BET). Both taxes impact all types of businesses, including C corporations, S corporations, LLCs, and sole proprietorships. However, only the BET and the BPT are imposed on entities that generate income above a certain threshold. In addition, New Hampshire does not have a sales tax or personal income tax but does have a small tax on interest and dividend income.

The state of New Hampshire is very competitive for doing business, with no personal income tax and low corporate taxes. Despite this, the state’s BPT and BET rates remain high, leading to criticism. However, there are several factors that could explain recent increases in BPT and BET revenues, such as an uptick in economic growth after the Great Recession and federal tax policy changes that spurred business repatriation of profits. Additional research is needed to understand these trends. Until then, the New Hampshire Business Profits Tax and the Business Enterprise Tax should not be reduced.

What Affects the New Hampshire BPT Rate?

It’s important to understand these taxes before establishing your business in the state of New Hampshire. The tax code can be confusing, and mistakes can have serious consequences. A tax professional can help you ensure that your company is paying the correct amount of taxes.

New Hampshire’s GOP lawmakers have been steadily lowering the state’s business profit tax since 2015, claiming that it would make the Granite State more attractive to businesses and inspire economic growth. However, there is little evidence that the lower BPT rate has had these effects. In fact, controlling for national economic factors shows that New Hampshire’s economic growth is not significantly tied to its low BPT rate. This makes it difficult to determine whether the tax cuts have been effective. Nonetheless, the reductions have generated considerable revenue for the state.

New Hampshire Business Profits Tax Due Dates

Both taxes are due by the 15th day of the third month following the close of a company’s taxable period. For calendar year corporations, this means March 15. Owners of LLCs, partnerships, and fiduciaries must file the BPT and BET on their individual state returns.

New Hampshire’s business tax rates have been reduced in recent years, but BPT and BET revenues do not appear to have increased as a result. Revenues have risen, but this is likely due to national factors, such as a recovery from the Great Recession and federal tax policy changes that encouraged business repatriation.