New Hampshire has a reputation as a no-tax state, and for individuals it is close. The state taxes businesses instead, along with meals, rooms and property, and the interest and dividends tax that used to catch investors was repealed starting in 2025. This profile covers tax year 2025 and 2026 planning for residents, business owners, employers and people who live in New Hampshire and work in Massachusetts.
What changed in 2025 for individuals
Title V of New Hampshire's laws, which lists its taxes, has no chapter titled as a general sales tax or a wage tax. Until 2025 the tax on interest and dividends was the main income-based tax on residents. The statute chapter that held it, "Taxation of Incomes," is now marked as repealed effective January 1, 2025. For tax year 2025 and later, New Hampshire residents are not filing that return. Federal tax on the same income is unaffected, and you should still report interest and dividends on your federal return.
Business Profits Tax and Business Enterprise Tax
New Hampshire's income-style taxes fall on businesses. The Business Profits Tax applies to corporations, partnerships, LLCs and proprietorships carrying on business activity in the state, defined as a substantial economic presence shown by purposeful direction of business toward New Hampshire. RSA 77-A:2 sets the rate at 7.5% for taxable periods ending on or after December 31, 2023. Businesses with income inside and outside the state apportion their profits. Sole proprietors can be covered, so self-employed people should check the filing rules.
The Business Enterprise Tax is a different base. It applies to the enterprise value tax base, the sum of compensation paid, interest paid and dividends paid. RSA 77-E:2 sets the rate at 0.55% for periods ending on or after December 31, 2022. Filing thresholds are set by the Department of Revenue Administration, so check its current instructions before deciding whether a small business must file. See our guides on C corporation taxes and business formation.
Meals, rooms, communications and real estate
The Meals and Rooms Tax under RSA 78-A:6 is 8.5% of room rent and of meals over $1.00, and the statute also reaches rental receipts. Intrastate communications services carry a 7% tax on the gross charge. The real estate transfer tax is $0.75 per $100 of the price. Operators of restaurants, inns and short-term rentals should confirm registration and filing duties with the Department of Revenue Administration (DRA).
Property tax: local assessment, state education rate
Local officials, not the state, appraise property: RSA 75:1 directs the selectmen to appraise taxable property at full and true value. The DRA commissioner sets the statewide education property tax rate to raise a statutory revenue target, and the state has a Board of Tax and Land Appeals. RSA chapter 79-A provides for current use taxation of qualifying land. See also our guide to state and local tax deductions.
Massachusetts commuters and remote work
New Hampshire adopted a statement of position in 2022 (RSA chapter 78-F) saying wages earned by New Hampshire residents for work done entirely in New Hampshire should not be taxed by any other state. It is a declaration of state policy, not a rule Massachusetts has to follow. Massachusetts law taxes nonresidents on income from employment carried on in Massachusetts, so days spent working at a Massachusetts office are generally Massachusetts income. For workers who split days between a Massachusetts office and a home in New Hampshire, the open question is how remote days are treated. Keep a day log, confirm that your employer is withholding for the right state, and read our Massachusetts page and Boston metro page. Because New Hampshire does not tax wages, there is no home-state credit to soften a Massachusetts bill.
Payroll and unemployment insurance
The U.S. Department of Labor's July 2026 table lists New Hampshire's taxable wage base at $14,000, rates from 0.10% to 7.00% and a new employer rate of 2.7%. New Hampshire's rate year runs July 1 through June 30, unlike most states. Employers with staff working in other states may need to register and withhold there, and our multi-state payroll guide covers how that works. For paid family leave, see our state paid leave guide and confirm the current New Hampshire program terms with the state.
How we can help
We prepare Business Profits Tax and Business Enterprise Tax returns, review whether Meals and Rooms or communications tax applies to a new business, and handle multi-state tax questions for New Hampshire residents with Massachusetts income. We can also run payroll for employees in several states. For our home state, see Illinois. This is general information, not personal advice.
Frequently asked questions
Does New Hampshire have a state income tax?
Not on wages, and the chapter taxing interest and dividends was repealed effective January 1, 2025. Businesses still pay the Business Profits Tax and Business Enterprise Tax.
What is the New Hampshire Business Profits Tax rate?
RSA 77-A:2 lists 7.5% for taxable periods ending on or after December 31, 2023.
Do I owe Massachusetts tax if I live in New Hampshire?
Generally yes on pay for work you perform in Massachusetts. How remote days at home are treated is more complicated, so ask for a review.
What is the Meals and Rooms Tax rate?
The statute lists 8.5% for rooms and for meals over $1.00.
Official sources
- New Hampshire RSA chapter 77, repeal of the taxation of incomes
- New Hampshire RSA 77-A:2, Business Profits Tax rate
- New Hampshire RSA 78-A:6, Meals and Rooms Tax rate
- New Hampshire RSA chapter 78-F, out-of-state taxation of remote worker income
- U.S. Department of Labor: Significant provisions of state unemployment insurance laws, July 2026
This page is a plain-language summary. The official source controls if there is any difference.
General information only, not tax, legal or accounting advice for your situation. Rules, limits and deadlines change; confirm the current rules with the official source or a qualified professional before you act. Reading this page does not create a professional relationship with CPA Tax Payroll and Accounting Corp.