Businesses in New Hampshire are subject to a number of taxes.  It is important that taxes not only be paid on a timely basis, but that they are also planned for properly in advance.  In addition to withholding (and submitting to the taxing authorities) employee's taxes from employee paychecks, employers are also liable for additional taxes on employee compensation.  Employers who have employees residing or working in other states should also consider the tax consequences of such employment.

Depending on the type of legal business entity your business is operating under, you may also have additional personal or business tax liabilities.  The nature of your business will also dictate other tax liabilities for which you may be subject.  While most of the taxes shown below are the legal responsibility of the business to report and to pay to the appropriate taxing authority, many of the taxes should be collected from the businesses' customers at the time of sale.  The fact that you do not collect the appropriate taxes from your customers will not remove your liability to pay said taxes to the taxing authority!  Even if you do not collect the correct amount of taxes from your customers, you will still be responsible to pay them to the taxing authority.  This can be an extremely devastating mistake.  Be sure to seek professional tax advice.

Because of the complexity of tax matters, all SCORE clients are advised to seek professional advice from a registered Certified Public Accountant (CPA) and/or a licensed attorney specializing in tax law.  Seacoast Chapter 185 provides a Registry of Professionals which contains information on accountants, lawyers, and other useful business resources.

While all reasonable efforts have been made for accuracy, the following list should be considered a guideline for planning and budgeting purposes.  SCORE makes no representations as to the accuracy or completeness of the below information, nor does SCORE guarantee that these schedules have been updated as tax laws may change.  The information contained below was compiled in most part from http://www.revenue.nh.gov/and from http://www.irs.gov/. Please refer to these sites for more complete and up to date information.

Payroll Related Taxes (Federal and State)

  • Self-Employment Tax (Federal)
    Two part tax combining Social Security and Medicare.  Maximum earnings subject to tax varies by year. All net earnings above a specified level are subject to the Medicare.

  • Matching Social Security Tax (Federal)
    Tax on Gross Pay per employee for old-age, survivors, and disability insurance.

  • Matching Medicare Tax (Federal)
    Tax on Gross Pay per employee (no limit on covered wages)  For hospital insurance.

  • NH Unemployment Tax (SUTA)
    Tax on Gross Pay per employee

  • Federal Unemployment Tax (FUTA)
    Tax on Gross Pay per employee

  • NH Business Enterprise Tax
    See below

NH State Income Tax

NOTE:  NH does have a State Income tax, in spite of what is often claimed.  Businesses pay income tax on profits; individuals, partnerships, and LLCs pay income tax on interest and dividend income; and employers pay income tax on employee incomes (wages, salaries, bonuses, commissions, etc.).

  • NH Business Profits Tax (NH BPT)
    Tax on income from business conducted in NH

  • NH Interest and Dividend Tax
    Tax assessed on interest income and dividend income of resident individuals, partnerships, limited liability companies, and fiduciaries

  • NH Business Enterprise Tax
    See Below (includes tax on employee wages, salaries, fees, bonuses, commissions and other compensation)

Other State Taxes

  • NH Business Enterprise Tax (NH BET)
    Tax on Total Enterprise Base (Total Compensation, Interest Expense, and Dividend Expense)

  • NH Workmen's Compensation
    Every employer who has any employees, full or part-time, is required to cover these employees with workers' compensation insurance written by a carrier. (see insurance)

  • NH Education Property Taxes
    Tax on total equalized valuation

  • Local Property Taxes
    Includes Town, Local Education, and County property taxes.  Refer to local taxing jurisdiction

Federal Taxes (not mentioned above, not a complete list)

  • Federal Income Tax
    Based on Taxable Income

  • Environmental Tax
    On the sales, use, or import of ozone-depleting chemicals, or products containing or manufactured with these chemicals

  • Communications & Air Transportation Tax
    Tax on communications services and air transportation

  • Fuel Tax
    Tax on many types of fuels

  • Heavy Equipment Sales Tax
    Tax on sale of heavy trucks, trailers, and tractors

  • Manufacturers Tax
    Tax on the sale or use of a variety of different articles

  • Other Federal Taxes
    Duties, Tariffs, Excise, Estate taxes, and other taxes; refer to professional tax accountant for advice

Other Miscellaneous NH Taxes

  • NH Motor Vehicle Rental Tax
    Tax on the rental value

  • NH Tobacco Sales Tax:  Cigarettes
    Tax on each pack of cigarettes

  • NH Tobacco Sales Tax:  Non-cigarettes
    Tax on the wholesale sales price

  • NH Communications Services Tax
    Tax on communications services provided

  • NH Electricity Consumption Tax
    Taxes per kilowatt hour

  • NH Insurance Premium Tax
    Tax on all insurance premiums collected

  • NH Insurance Surplus Lines Tax
    Tax on surplus lines insurance coverage premiums collected

  • NH Medicaid Enhancement Tax
    Tax on net patient services revenue of every hospital

  • NH Utility Property Tax
    Tax on valuation of utility property

  • NH Meals & Rentals Tax
    Tax is assessed upon patrons of hotels and restaurants, on room charges and meals

  • NH Fuels Tax
    Tax varies based on type of fuel, purchaser, and where consumed 

  • NH Private Car Tax
    Tax based on the market value

  • NH Railroad Tax
    Tax based on market value of railroad-related property

  • NH Timber Tax
    Tax on the stumpage value at the time of cutting

  • NH Excavation Tax
    Tax per cubic yard

  • NH Real Estate Transfer Tax
    Tax on the price or consideration for such sale, grant, or transfer (split equally by buyer and seller)

  • NH Current Use Tax
    Tax on the value of land upon change in use

When Payments Are Due (for selected taxes only)

  • Federal Tax Withheld
    Monthly – If Total Taxes paid for prior year were $50,000 or less
    Semi-weekly – If Total Taxes paid for prior year were greater than $50,000

  • State Tax Withheld
    See Maine or Massachusetts Withholding Forms

  • Social Security and Medicare Tax Withheld
    Monthly – If Total Taxes paid for prior year were $50,000 or less
    Semi-weekly – If Total Taxes paid for prior year were greater than $50,000

  • State Unemployment Tax
    On Last Day of Month Following the Quarter End

  • Federal Unemployment Tax
    On Last day of Month Following the Quarter End

  • NH BPT & BET
    Quarterly Estimated Payments on 4/15, 6/15, 9/15 and 12/15

  • Federal Income Tax
    Quarterly Estimated Payments on 4/15, 6/15, 9/15 and 1/15

  • Workmen’s Compensation
    Determined by Contract with Insurance Carrier

About the Author(s)

 Lewis M Roch III

Mr. Roch has expertise in Startups, Mergers & Acquisitions, Diversification & Expansion, Venture Capital, and Initial Public Offerings (IPOs).  His industry experience spans data, voice, and video communications; cellular and wireless technology; energy; agriculture; commerical real estate; residential real estate; retail; venture financing; and not-for-profits. 

Entrepreneur
Tax Computations for NH Businesses