In New Hampshire, a Business Profits Tax (BPT) return must be filed by any business with a gross annual revenue of more than $50,000. Limited liability companies (LLCs), partnerships, corporations, and sole proprietorships are all included in this. If you earn income from sources in New Hampshire, even if your business is not physically based there, you can still be required to file a BPT return. What Is the Business Income Tax Rate?
In New Hampshire, business income is taxed at an 8.5% rate. There is a single flat tax rate that is imposed on all eligible enterprises. However, there is a $500 minimum tax that is imposed on all enterprises with gross business income over $50,000.
As was already mentioned, there is no state income tax in New Hampshire. This implies that those who reside in New Hampshire and earn a living there are not liable to the state’s income tax on their wages or salaries. Federal income tax may, however, be imposed on income derived from dividends, interest, and capital gains.
There isn’t a separate capital gains tax in New Hampshire. Capital gains, however, can be subject to federal income tax, as was previously mentioned. Additionally, if you live in New Hampshire and sell real estate outside of the state, the state where the property is situated may tax your capital gains.
In conclusion, despite the absence of a state income tax in New Hampshire, companies with operations there can nevertheless be liable for the Business Profits Tax. Business income is subject to an 8.5% tax rate with a $500 minimum tax. To avoid fines and interest, it’s critical for all qualifying firms to submit their BPT returns on time.