New Hampshire doesn't have a traditional franchise tax. Instead, the state operates a unique dual business tax system consisting of:
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 for the Business Enterprise Tax and RSA 77-A 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.
The Business Enterprise Tax is imposed at a rate of 0.55% on the enterprise value tax base (generally compensation, interest, and dividends paid). The Business Profits Tax is imposed at a rate of 7.5% on taxable business profits.
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).
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.
For taxable periods beginning on or after January 1, 2025:
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, after the rate dropped to 3% for periods ending on or after December 31, 2024.
File both taxes using New Hampshire's Granite Tax Connect (GTC) 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.
For calendar-year filers, BPT and BET annual returns are generally due April 15. 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. For BPT, estimated payments are required if the expected tax liability exceeds $200. For BET, estimated payments are required if the expected tax liability exceeds $200.
New Hampshire imposes penalties for late filing and payment of business taxes, including percentage-based late filing penalties, late payment penalties, and fraud penalties. Interest also accrues daily on overdue amounts.
Additional penalties may apply for electronic payment non-compliance or failure to maintain registered agent information and file annual reports, potentially leading to administrative suspension or dissolution.
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.
Foreign entities conducting business in New Hampshire must register with the Secretary of State before operating, requiring the appointment of a 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 1st of 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.
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: foreign entity registration, annual report filing with the Secretary of State, registered agent services, and deadline tracking across all your entities.
Book a demo to see how Discern simplifies multi-state compliance management.
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