New Hampshire did not have a capital gains tax in 2021. The state has never imposed a broad personal income tax, so profits from selling stocks, mutual funds, cryptocurrency, or real estate that year were not taxed at the state level, regardless of the size of the gain or how long you held the asset.1Tax Foundation. Taxes In New Hampshire What the state did tax was a narrower slice of investment income: interest and dividends.
What Was Not Taxed on Your 2021 Return
If you sold appreciated stock, closed out a crypto position, or sold a second home in New Hampshire during 2021, the gain itself owed nothing to the state. The federal distinction between short-term and long-term capital gains had no counterpart in New Hampshire law, because there was no state income tax structure to apply those rates against. Unrealized appreciation in a brokerage account was likewise untouched.
One tax on real estate sales does get confused with a capital gains tax and should not be. The Real Estate Transfer Tax under RSA 78-B applies to the total sale price, not the profit, at $0.75 per $100 of consideration, and both buyer and seller owe it.2NH Department of Revenue Administration. Real Estate Transfer Tax On a $400,000 sale that was $3,000 from the seller and $3,000 from the buyer in 2021, owed whether the property sold at a gain or a loss.
The 5% Interest and Dividends Tax That Did Apply
New Hampshire’s Interest and Dividends Tax, governed by RSA 77, carried a flat 5% rate for tax periods ending before December 31, 2023, which includes the full 2021 tax year.3NH Department of Revenue Administration. Interest and Dividends Tax This tax hit the income your investments produced while you held them, not the profit when you sold them. Bank interest, bond interest, and corporate dividends counted. Stock dividends paid in new shares of the issuing company were excluded.4New Hampshire General Court. New Hampshire Code 77-4 – What Taxable
So a brokerage account that gained $50,000 in unrealized value during 2021 while paying out $800 in dividends generated a state tax bill on the $800 only.
Who Had to File
Single filers owed the tax and had to file only if gross interest and dividend income exceeded $2,400 for the year. For married couples filing jointly the threshold was $4,800.5NH Department of Revenue Administration. Interest and Dividends Tax Instructions Below those amounts there was no state obligation.
Residents who crossed the threshold filed Form DP-10.6Legal Information Institute. New Hampshire Code Rev 906.02 – Form DP-10, Interest and Dividends Tax Return The underlying numbers came off federal Forms 1099-INT and 1099-DIV.
Additional Exemptions
On top of the base filing threshold, three $1,200 personal exemptions reduced taxable income for qualifying residents: one for anyone age 65 or older, one for the blind, and one for a disabled resident under 65 who was unable to work.7NH Department of Revenue Administration. Interest and Dividends Tax Frequently Asked Questions An eligible resident could stack them against the base threshold and shelter a meaningful amount of investment income.
Late Filing Penalty
If you still have an unfiled 2021 return, the penalty for failure to file is 5% of the unpaid tax per month, with a minimum of $10.8New Hampshire General Court. New Hampshire Code 21-J-31 – Penalty for Failure to File That charge compounds quickly on larger balances.
What Happened to the Interest and Dividends Tax After 2021
The 5% rate that applied in 2021 did not survive. Laws of 2021, Chapter 91 began a phase-out, and House Bill 2 in 2023 accelerated it: the rate dropped to 4% for periods ending on or after December 31, 2023, then to 3% for periods ending on or after December 31, 2024, with full repeal for periods beginning after December 31, 2024.9NH Department of Revenue Administration. NH Department of Revenue Administration Comprehensive Guide Detailing 2023 Tax Changes
As of 2025, New Hampshire residents owe no Interest and Dividends Tax and no filing is required.10NH Department of Revenue Administration. 11Internal Revenue Service. Topic No. 409, Capital Gains and Losses
Businesses Did Owe State Tax on 2021 Gains
The individual answer does not carry over to business entities. When a business operating in New Hampshire sold equipment, commercial property, or other assets at a gain in 2021, that gain flowed into taxable income under the Business Profits Tax (RSA 77-A). The BPT rate for 2021 was 7.7%.12NH Department of Revenue Administration. Business Profits Tax
Businesses also owed the Business Enterprise Tax under RSA 77-E, a separate levy on an enterprise value tax base consisting of total compensation, interest, and dividends paid by the business. The 2021 BET rate was 0.60%.13NH Department of Revenue Administration. Business Enterprise Tax For pass-through entities whose income or expenses are federally reportable by the owners, the items of income and expense belonged on the entity’s business profits tax return rather than on the individual owner’s return.14Legal Information Institute. New Hampshire Code Rev 302.05 – Business Organizations Whose Income or Expenses Are Federally Reportable by the Owners