New Hampshire doesn't have a traditional franchise tax. Instead, the state operates a unique dual business tax system consisting of:

• The Business Enterprise Tax (BET)

• The Business Profits Tax (BPT)

These two taxes effectively serve the same purpose as franchise taxes in other states, generating revenue from businesses operating within state borders. This system is governed by RSA 77-E:2 for the Business Enterprise Tax and RSA 77-A:2 for the Business Profits Tax.

Unlike many states that use net worth or capital stock calculations, New Hampshire's approach features a dual framework that broadly applies to most entity types and business activities, creating a more comprehensive business tax structure than traditional franchise taxes.

Current tax rates and credits

New Hampshire's BET and BPT rates have reached their terminal levels under a phased reduction schedule established by HB 10 in 2021, as documented in TIR 2021-004.

The Business Enterprise Tax is imposed at a rate of 0.55% on the enterprise value tax base (generally compensation, interest, and dividends paid) for taxable periods ending on or after December 31, 2022. The Business Profits Tax is imposed at a rate of 7.5% on taxable business profits for taxable periods ending on or after December 31, 2023. The Tax Foundation independently confirms New Hampshire's 7.5% corporate income tax rate. No further statutory reductions are programmed under existing law.

The BET paid may be used as a credit against the Business Profits Tax (BPT). Any unused portion of the BET credit may be carried forward and allowed against the BPT for ten taxable periods from the taxable period in which the BET was paid (for credits attributable to taxable periods ending on or after December 31, 2014).

Who must file?

New Hampshire's dual tax system applies to business entities operating in the state, but the specific tax obligations vary significantly by entity type. The system covers corporations, LLCs, partnerships, and sole proprietorships, whether they're domestic entities formed in New Hampshire or foreign entities doing business in the state.

Importantly, New Hampshire doesn't recognize federal tax elections, so S corporations are treated as C corporations for state tax purposes.

Business organizations subject to New Hampshire business taxes file Form BT-Summary with their BPT and BET returns, even if no tax is ultimately due.

Filing thresholds

For taxable periods beginning on or after January 1, 2025, the following thresholds apply per the 2025 BT-Summary Instructions:

• Business Profits Tax: Every business organization with gross business income from all business activities of more than $109,000 must file a BPT return.

• Business Enterprise Tax: Every business enterprise with more than $298,000 of gross receipts from all activities, or an enterprise value tax base of more than $298,000, must file a BET return. Entities whose gross receipts are $298,000 or below must still calculate their enterprise value tax base to determine filing obligations.

According to the NH DRA, the filing threshold is adjusted biennially, with the next adjustment applying to taxable periods beginning on or after January 1, 2027.

Exceptions and special cases

Most 501(c)(3) organizations are exempt from New Hampshire business taxes, though nonprofits with unrelated business taxable income may still have filing obligations. The exemption depends on specific activities and whether income is generated outside the exempt purpose.

New Hampshire eliminated its Interest and Dividends Tax effective January 1, 2025, as confirmed by the NH DRA. The final rate was 3% for periods ending on or after December 31, 2024. No 2025 returns or estimated payments are required for this tax.

How to file

File both taxes using New Hampshire's Granite Tax Connect portal, which provides immediate confirmation and faster processing than paper submissions. Supporting documentation includes federal tax returns and apportionment worksheets for multi-state businesses. Payment options include electronic funds transfer and other standard methods through the GTC portal.

Due dates and deadlines

For calendar-year filers, BPT and BET annual returns are generally due April 15, tracking the federal deadline; confirm against current New Hampshire DRA instructions each year. Partnership and other entity-specific variations may apply, so consult the current New Hampshire Department of Revenue Administration guidance for your entity type.

Estimated payments are required quarterly if the expected liability exceeds certain thresholds. According to the 2025 BT-Summary Instructions, estimated payments are required if the expected BPT tax liability is $200 or more, and if the expected BET tax liability is $260 or more.

Penalties and compliance

New Hampshire imposes penalties for late filing and payment of business taxes under RSA 21-J. Late filing penalties are 5% per month up to a maximum 25% cap under RSA 21-J:31. Separate late payment penalties may also apply under RSA 21-J:33, and interest accrues daily on overdue amounts at a rate set annually by the Commissioner per RSA 21-J:28.

Additional penalties may apply for electronic payment non-compliance or failure to maintain registered agent information and file your New Hampshire annual report, potentially leading to administrative suspension or dissolution.

New Hampshire franchise tax filing requirements

No certificate of good standing is required to file New Hampshire business tax returns (BPT and BET). There are no separate filing fees for tax returns beyond the calculated tax liability itself. However, maintaining good standing status is essential for business operations, as entities that lose good standing may face significant consequences, including losing the ability to bring legal action in state courts.

Additional New Hampshire compliance requirements

Foreign entities conducting business in New Hampshire must register with the Secretary of State before operating, requiring the appointment of a New Hampshire registered agent and filing a Certificate of Authority ($100 filing fee).

The state also requires registered entities to file annual reports with the Secretary of State to maintain good standing. This is separate from tax filing requirements and must be filed by April 1 each year.

While these Secretary of State fees are separate from tax obligations, they are part of the overall compliance requirements for doing business in New Hampshire.

Other business obligations include unemployment insurance taxes and property taxes on business assets.

Track New Hampshire compliance with Discern

New Hampshire's dual business tax system, with separate BPT and BET calculations, filing thresholds, and credit rules, requires professional tax expertise to navigate accurately. These filings are handled by accountants through the Department of Revenue Administration's Granite Tax Connect portal.

Discern doesn't file New Hampshire business taxes, but we automate the compliance tasks you can control: New Hampshire foreign entity registration, annual report filing with the Secretary of State, registered agent services, and deadline tracking across all your entities. For businesses managing compliance across multiple states, Discern provides a single platform to track every annual report deadline, maintain registered agent coverage in all 51 jurisdictions, and ensure nothing slips through the cracks.

Book a demo to see how Discern simplifies multi-state compliance management.

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