New Hampshire tax rates are unusual in two directions: the state charges no tax on wages, salaries, or earned income, and it has no general sales tax on consumer goods. What it does charge is a focused set of levies on business activity, prepared meals and lodging, property transfers, communications, and real property. The headline rates are 7.5% on business profits, 0.55% on the business enterprise base, 8.5% on meals and room rentals, $0.75 per $100 of value on real estate transfers (paid by both buyer and seller), and 7% on two-way communications services. Local property taxes average around 1.41% of value, among the highest effective rates in the country.
Income and Investment Income
There is no state tax on wages or salaries in New Hampshire, and as of January 1, 2025 there is no tax on interest or dividend income either. The Interest and Dividends Tax under RSA 77 has been fully repealed. No filing is required for the 2025 or 2026 tax year, the Department of Revenue Administration has stopped publishing I&D forms, and estimated payments for this tax should not be submitted.1NH Department of Revenue Administration. Repeal of NH Interest and Dividends Tax Now in Effect
Balances still owed for 2024 and earlier years remain collectible. The DRA will continue processing those returns. For investment income earned in 2025 and after, residents owe the state nothing.
Business Profits Tax: 7.5%
The Business Profits Tax under RSA 77-A is the state’s primary business levy, imposed at 7.5% of taxable business profits.2New Hampshire General Court. New Hampshire Code 77-A:2 – Imposition of Tax It applies to every form of business organization: corporations, partnerships, LLCs, and sole proprietorships. Taxable business profits start from federal taxable income with certain New Hampshire adjustments, so the federal return feeds the state calculation.
For taxable periods beginning on or after January 1, 2025, a business must file a BPT return if gross business income from all activities exceeds $109,000.3NH Department of Revenue Administration. Business Taxes Below that threshold, no return is required.
Business Enterprise Tax: 0.55%
Alongside the BPT, the Business Enterprise Tax under RSA 77-E runs at 0.55%. It is not a profits tax. The base is the enterprise value base: compensation paid or accrued, interest paid or accrued, and dividends paid by the business.3NH Department of Revenue Administration. Business Taxes For taxable periods beginning on or after January 1, 2025, every business with more than $298,000 in gross receipts or an enterprise value tax base above $298,000 must file.
Many businesses owe both taxes on the same activity, and the statute prevents double counting. BET paid can be credited dollar-for-dollar against BPT liability under RSA 77-A:5, and any unused credit carries forward up to ten taxable periods.4New Hampshire General Court. New Hampshire Code 77-A:5 – Credits In practice, you usually pay the larger of the two rather than both stacked.
Meals and Rooms Tax: 8.5%
Restaurant meals, hotel and short-term room rentals, and motor vehicle rentals are taxed at 8.5% under RSA 78-A.5NH Department of Revenue Administration. Meals and Rooms (Rentals) Tax Consumers pay at the point of sale and operators remit to the DRA by the 15th of each month.
A taxable meal is any food or beverage prepared for immediate consumption that costs $0.36 or more. Bakery items sold in quantities of fewer than six from a restaurant are taxable. Pre-packaged groceries and unprepared foods bought at a grocery store are not, which is how New Hampshire can accurately claim no general sales tax while still taxing restaurant checks.
For lodging, the tax applies to any occupancy shorter than 185 consecutive days. On the 185th consecutive day the operator must refund all meals and rooms tax previously collected for that stay.6NH Department of Revenue Administration. Meals and Rooms (Rentals) Tax FAQ Long-term residents are effectively exempt.
Real Estate Transfer Tax: $0.75 Per $100, Each Side
Every sale or transfer of real property triggers a transfer tax under RSA 78-B at $0.75 per $100 of the sale price. The tax is imposed on the buyer and the seller separately. A $300,000 sale produces $2,250 from each party, for $4,500 on the transaction.7NH Department of Revenue Administration. Real Estate Transfer Tax When the price is $4,000 or less, a minimum $20 tax applies instead.8New Hampshire General Court. New Hampshire Code 78-B:1 – Transfer Tax
Several categories of transfer are exempt: transfers to government entities, transfers by inheritance or will, transfers between spouses under a divorce decree, and transfer-on-death deeds where no money changes hands.9New Hampshire General Court. New Hampshire Code 78-B:2 – Exceptions
Communications and Excise Taxes
Two-way communications services purchased in New Hampshire are taxed at 7% of the gross charge under RSA 82-A, covering landline phone service, mobile plans, and similar services.10New Hampshire General Court. New Hampshire Code 82-A:3 – Imposition of Tax
Specific products carry their own excises. Cigarettes are taxed at $1.78 per pack of 20.11NH Department of Revenue Administration. Tobacco Tax Timber harvested in the state is subject to a yield tax of 10% of stumpage value at the time of cutting under RSA 79.
Property Tax: Roughly 1.41% Effective
With no income tax and no sales tax, property taxes carry more of the load in New Hampshire than in most states. Local property taxes fund municipal services, schools, and county government, and the effective rate on owner-occupied homes runs around 1.41%, one of the highest in the country.
On top of local rates, the state imposes a statewide education property tax under RSA 76:3. The DRA sets the rate each year at a level designed to generate $363 million statewide, so the dollar rate per $1,000 of assessed value shifts year to year.12New Hampshire General Court. New Hampshire Code 76:3 – Education Tax Assessment and collection are local, but the DRA oversees equalization ratios and audits to keep assessments consistent across municipalities.
Interest on Late Payment: 9% for 2026
For the 2026 calendar year, the DRA charges 9% interest on underpaid taxes and pays 6% on refunds of overpayments.13NH Department of Revenue Administration. Technical Information Release TIR 2025-004 The underpayment rate is tied to the federal underpayment rate plus two percentage points and resets annually; recent years ran as low as 7%. Separate penalties apply for late filing and understated tax, and the DRA can assess a 25% penalty on understated amounts, stacked on top of interest.