Tax Rates for NH Businesses

Tax Rates for NH Businesses

The information contained below was compiled in most part from 
Does NH have an Income Tax or Sales Tax? | Frequently Asked Questions.

Payroll Related Taxes:

• Self-Employment Tax (Federal)
  15.3%, which is a total of 12.4% for social security and 2.9% for Medicare.  Maximum earnings subject to the social security tax is $110,100 in 2012. All net earnings of at least $400 are subject to the Medicare.
• Matching Social Security Tax (Federal)
  6.2% of Gross Pay on first $110,100 in 2012 of Gross Pay per employee.  For old-age, survivors, and disability insurance.
• Matching Medicare Tax (Federal)
  1.45% x Gross Pay per employee (no limit on covered wages)  For hospital insurance.
• NH Unemployment Tax (SUTA)
  0.05%-7% of the first $10,000 effective January 1, 2010, $12,000 effective January 1, 2011, and $14,000 effective January 1, 2012 of Gross Pay per employee (State sets rate:  3.2% if no prior experience)
• Federal Unemployment Tax (FUTA)
  6.2% (Less up to 5.4% of SUTA paid) of the first $7,000 of 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 8.5% income tax on profits; individuals, partnerships, and LLCs pay 5% income tax on interest and dividend income; and employers pay 0.75% income tax on employee wages, salaries, bonuses, commissions, interest expense and dividends paid.

• NH Business Profits Tax (NH BPT)
  8.5% on Income from business conducted in NH (If Gross Sales > $50,000)
• NH Interest and Dividend Tax
  5% tax assessed on interest income and dividend income of resident individuals, partnerships, limited liability companies, and fiduciaries
• NH Business Enterprise Tax
  See Below (includes 0.75% tax on employee wages, salaries, fees, bonuses, commissions, other compensation, interest expense and dividends paid).

Other State Taxes:

• NH Business Enterprise Tax (NH BET)
  0.75% of Total Enterprise Base (Total Compensation, Interest Expense, and Dividend Expense) (If Sales > $150,000 or Enterprise Base > $75,000)
• Effective January 01, 2013 - [If Sales > $200,000 (previously $150,000) or Enterprise Base > $100,000 (previously $75,000)] must file an NH enterprise tax return on or before March 15.
• 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. 
• NH Education Property Taxes
  $1.78 to $3.30 per $1,000 (for FY-2009) of total equalized valuation
• Local Property Taxes
  Includes Town, Local Education, and County property taxes.  Refer to local taxing jurisdiction