Complete Guide to New Hampshire LLC Taxes in 2025
New Hampshire occupies a unique position in US tax policy: it is one of the few states with no individual income tax and no sales tax. However, New Hampshire imposes business-level taxes through the Business Profits Tax (BPT) at 7.5% and the Business Enterprise Tax (BET) at 0.55%. For LLC owners, this creates an unusual situation where the business itself may owe tax at the entity level. This guide explains everything you need to know about navigating New Hampshire's distinctive LLC tax structure.
How New Hampshire Taxes LLCs
Unlike most states where LLC income passes through to individual returns, New Hampshire taxes business income at the entity level through two taxes:
- Business Profits Tax (BPT): 7.5% on business profits (net income) for businesses with gross income over $75,000
- Business Enterprise Tax (BET): 0.55% on the enterprise value tax base (compensation + interest + dividends paid) for businesses with gross receipts over $250,000 or enterprise value tax base over $75,000
The BET is creditable against the BPT, so businesses effectively pay the greater of the two taxes, not both. Since the BPT rate (7.5%) is much higher than BET (0.55%), most profitable LLCs will owe primarily the BPT with the BET serving as a minimum alternative tax.
New Hampshire does not impose an individual income tax (it eliminated the interest and dividends tax in 2025), so there is no additional state tax on LLC distributions to members.
Key Point: New Hampshire's 7.5% BPT is an entity-level tax on business profits, not a personal income tax. This means the LLC itself pays the tax, and members do not owe additional New Hampshire income tax on distributions. The effective combined rate is approximately 7.5% since BET credits against BPT.
New Hampshire Business Tax Rates
| Tax | Rate | Threshold |
|---|---|---|
| Business Profits Tax (BPT) | 7.50% | Gross income > $75,000 |
| Business Enterprise Tax (BET) | 0.55% | Gross receipts > $250K or base > $75K |
| Individual Income Tax | 0% | Eliminated (no I&D tax from 2025) |
| Sales Tax | 0% | No sales tax statewide |
New Hampshire LLC Annual Filing Requirements
- Annual Report: $100 fee, due April 1, filed with the Secretary of State
- BPT/BET Return: Form NH-1065 (partnership) due March 15 or April 15 depending on entity type
- Estimated Tax Payments: Required quarterly if expecting to owe $200 or more in BPT
- No Sales Tax: No filing required -- New Hampshire has no sales tax
Double Benefit: New Hampshire has neither individual income tax nor sales tax. Combined with entity-level BPT/BET, this means LLC owners face a simpler personal tax situation. However, the 7.5% BPT rate is higher than many states' individual income tax rates.
BPT vs. BET: How They Work Together
Understanding the interplay between BPT and BET is crucial for New Hampshire LLC owners:
- BPT taxes net business profits at 7.5%
- BET taxes the enterprise value base (compensation + interest + dividends) at 0.55%
- BET credits against BPT: The amount of BET paid is credited dollar-for-dollar against BPT liability
- Net effect: You effectively pay the higher of BPT or BET, not both
- For most profitable LLCs: BPT will be the larger amount, with BET fully offset
New Hampshire LLC vs. Other States
| State | Income/Business Tax | Annual Fee | Sales Tax |
|---|---|---|---|
| New Hampshire | 7.5% BPT (entity) | $100 | 0% |
| Massachusetts | 5% (individual) | $500 | 6.25% |
| Vermont | 3.35-8.75% | $35 | 6% |
| Maine | 5.8-7.15% | $85 | 5.5% |
| Montana | 1-6.75% | $20 | 0% |
| Oregon | 4.75-9.9% | $100 | 0% |
New Hampshire LLC Formation Costs
- Certificate of Formation: $100 with the Secretary of State
- Registered Agent: Required; professional service $50-200/year
- Annual Report: $100/year
- EIN: Free from the IRS
Common New Hampshire LLC Tax Mistakes
- Assuming no taxes at all: While there is no individual income tax, the 7.5% BPT is significant
- Missing the filing threshold: LLCs with gross income over $75,000 must file BPT returns
- Ignoring BET: Even if BPT is zero (loss year), BET may still apply
- Not claiming the BET credit: Ensure BET paid is credited against BPT liability
- Late annual report: Due April 1, which is an unusual deadline
New Hampshire Resources
- NH Department of Revenue Administration: revenue.nh.gov -- BPT/BET forms, payments
- Secretary of State: sos.nh.gov -- business filings, annual reports
- Revenue Customer Service: (603) 230-5000