New Hampshire does not impose an individual income tax

# Summary

New Hampshire does not impose an individual income tax. It has never taxed earned income, and the one tax that did reach individual investment income — the Interest and Dividends Tax under RSA chapter 77 — was repealed effective January 1, 2025. Tax year 2025 is the first year with no individual income tax of any kind.

Two things qualify that, and both matter in practice:

• Self-employed individuals are still taxed on business income. A proprietorship with more than $109,000 of gross business income files a Business Profits Tax return and pays 7.5 percent on taxable business profits. That is an income tax on an individual's business income, and it applies in the covered year.
• Pre-2025 years remain live. Returns, estimates, audits and collection for tax periods beginning on or before December 31, 2024 are unaffected by the repeal, and the Department has said so expressly.

# New Hampshire Department of Revenue Administration statement

The Department issued Technical Information Release TIR 2025-001 on January 21, 2025, titled "Interest and Dividends Tax Repealed Effective January 1, 2025." Its stated purpose is:

"to advise taxpayers, tax practitioners, and the general public regarding the repeal of the RSA Chapter 77 Interest and Dividends Tax (I&D Tax) effective January 1, 2025."

The operative sentence:

"Effective for taxable periods beginning after December 31, 2024, the I&D Tax has been repealed."

And on tax year 2025 specifically:

"Estimated I&D Tax payments for tax year 2025 should not be filed. Taxpayers who have made estimated tax payments in error should request in writing that they be refunded."

"2025 I&D Tax forms will not be available as taxpayers will not be required to file a 2025 I&D Tax return."

The Department notes in the release that a TIR "represents the position of the Department on the limited issues discussed herein based on current law and Department interpretation," and directs practitioners to the source documents for the current status of any tax law.

# What was repealed, and when it was decided

Under prior law, per TIR 2025-001:

"the I&D Tax was imposed at the rate of 3% on the interest and dividend income received by New Hampshire residents in excess of the personal exemption of $2,400 or the joint filer exemption of $4,800. Exemptions were available for residents who are 65 years of age or older, who are blind, or who are disabled, unable to work and have not yet reached their 65th birthday."

The repeal was legislated in two steps, both recorded in the TIR's footnote:

• 2021 session: House Bill 2 (Chapter 91, Sections 89-102, Laws of 2021) repealed the I&D Tax for taxable periods beginning after December 31, 2026.
• 2023 session: House Bill 2 (Chapter 79, Sections 86-88, Laws of 2023) accelerated the repeal to taxable periods beginning after December 31, 2024.

The acceleration is the reason material written between 2021 and 2023 gives 2027 as the first tax-free year. It is not. The first taxable period free of the I&D Tax is the one beginning January 1, 2025.

Consistent with the repeal, RSA chapter 77 no longer appears in the Title V compilation captured in this library on 2026-05-30, which carries chapters 72 through 76, 77-A, 77-E, 78 and its variants, 79, 80, 82, 82-A, 85, 87 and 90.

# Pre-2025 years are unaffected

The repeal is prospective only, and the Department was explicit about the consequences.

"Taxpayers who are required to file a 2024 I&D Tax return (or a return for any earlier year) either on a fiscal or calendar year basis will still need to do so by the statutory due date and will still need to include any required payment of tax, interest, and penalty that may be due. This includes all four quarterly estimate payments for tax year 2024. The repeal does not provide amnesty for pre-repeal tax years."

"Taxable periods beginning on or prior to December 31, 2024 shall remain subject to audit and collection by the Department in accordance with applicable law and rules."

On overpayments: "All tax year 2024 I&D Tax overpayments will be refunded unless they may be applied to any prior balances due. Overpayments for tax years prior to 2024, for which the statute of limitations has not passed, will be refunded upon request after being applied against any unpaid balances due."

So an unfiled or amended I&D return for 2024 or earlier is still a live obligation, governed by the pre-repeal rules. The Department points to RSA chapter 77 and N.H. Code of Admin. Rules Rev 900 for that historical material.

# Where an individual is still taxed on income

New Hampshire taxes business activity through two taxes that reach unincorporated individuals, and neither was touched by the I&D repeal.

Business Profits Tax. RSA 77-A:2 imposes the tax "upon the taxable business profits of every business organization" — at 7.5 percent for all taxable periods ending on or after December 31, 2023.

The Department's NH-1040 Proprietorship Business Profits Tax Return Instructions for 2025 state who files:

"All business organizations, including single member Limited Liability Companies (SMLLC), taxed as a proprietorship federally must file a NH-1040 Business Profits Tax (BPT) return provided they have conducted business activity in New Hampshire and their gross business income from everywhere is in excess of $109,000 (for taxable periods beginning on or after January 1, 2025)."

The same instructions define "gross business income" as "all income for federal income tax purposes from whatever source derived in the conduct of business activity, including but not limited to gross proceeds from sales, compensation for rendering services" and similar receipts. The threshold is measured on gross income from everywhere, not on New Hampshire profit.

Business Enterprise Tax. RSA 77-E:2 imposes a tax "upon the taxable enterprise value tax base of every business enterprise" — at 0.55 percent for all taxable periods ending on or after December 31, 2022. The base is enterprise value rather than profit, so it can be owed by an enterprise with no profits.

The practical rule. A New Hampshire individual with only wages, interest, dividends, or capital gains owes no New Hampshire tax on that income in 2025. A self-employed individual above the BPT filing threshold does owe tax measured by income. "New Hampshire has no income tax" is right for the first and wrong for the second.

# Filing consequences

For tax year 2025 there is no New Hampshire individual income tax return, no I&D return, and no I&D estimated payments — the Department states that 2025 I&D forms will not be available and that estimates for 2025 should not be filed. There is no New Hampshire withholding on wages.

Federal obligations are unaffected.

A proprietorship above the $109,000 gross business income threshold files Form NH-1040. Partnerships file NH-1065 and corporations NH-1120 for the same tax; a fiduciary files NH-1041. Business enterprises within RSA 77-E file a BET return, commonly alongside the BPT return on the combined Business Tax Summary.

An I&D obligation for a taxable period beginning on or before December 31, 2024 is filed and paid under the pre-repeal rules.

# Coverage and verification

Tax years covered: 2025. This is the first tax year for which the determination holds — the I&D Tax applied to taxable periods beginning on or before December 31, 2024, so this determination must not be applied to 2024 or earlier.

Verified on 2026-08-13 against TIR 2025-001 issued by the New Hampshire Department of Revenue Administration on January 21, 2025, the RSA Title V compilation and the Department's NH-1040 Proprietorship instructions for 2025 as published in this library.

Sourcing note: revenue.nh.gov blocks automated retrieval — every request from this pipeline returns HTTP 403, including for documents already held in this library from an earlier fetch. TIR 2025-001 was therefore obtained from the Department's website by the maintainer and quoted here as supplied. The RSA text and the NH-1040 instructions come from this library's own New Hampshire corpora, captured on 2026-05-30 while the host was still reachable.

This determination carries status "not-imposed-with-exception" because the Business Profits Tax reaches unincorporated individuals on business income within the covered year.

# Sources

New Hampshire Department of Revenue Administration, TIR 2025-001, Interest and Dividends Tax Repealed Effective January 1, 2025 (January 21, 2025) — https://www.revenue.nh.gov/sites/g/files/ehbemt736/files/documents/2025-001-technical-information-release-repeal.pdf

House Bill 2, Chapter 91, Sections 89-102, Laws of 2021 (repeal for periods beginning after December 31, 2026), as cited in TIR 2025-001.

House Bill 2, Chapter 79, Sections 86-88, Laws of 2023 (acceleration to periods beginning after December 31, 2024), as cited in TIR 2025-001.

RSA §§ 77-A:2 and 77-E:2, and the NH-1040 Proprietorship Business Profits Tax Return Instructions (2025), as published in this library.