New Hampshire’s tax laws require businesses operating within the state to pay both the Business Profits Tax and the Business Enterprise Tax if they meet certain thresholds. The BPT is a tax on the taxable business profits, while the BET is a tax on the value of the business enterprise’s compensation, interest, and dividends. Additionally, businesses must comply with other tax-related regulations, such as filing timely returns and maintaining accurate records.
New Hampshire Business Profits Tax (BPT)
New Hampshire Business Profits Tax is a tax on the taxable business profits of businesses operating in New Hampshire. The current BPT rate is 7.7%. This tax applies to all business organizations, including corporations, LLCs, partnerships, and sole proprietorships, provided their gross receipts exceed $50,000. The taxable income is computed similarly to federal taxable income, with certain state-specific adjustments. This tax liability is significant for profitable businesses, as it directly correlates with their earnings.
New Hampshire Business Enterprise Tax (BET)
The Business Enterprise Tax is another crucial tax for businesses in New Hampshire. It is levied at a rate of 0.6% on the “enterprise value tax base,” which is defined as the sum of compensation paid to employees, interest paid, and dividends paid by the business. The BET applies to businesses with gross receipts exceeding $200,000 or an enterprise value tax base over $100,000. The BET is unique in that it targets the value generated by a business’s operations rather than its profits, making it applicable even to businesses that might not be highly profitable but still contribute significantly to the economy through wages and dividends.
New Hampshire Sales and Use Tax
Unlike many states, New Hampshire does not impose a general sales and use tax. This absence of a sales tax is a significant advantage for businesses, particularly those involved in retail and consumer services, as it simplifies the tax process and reduces the overall tax burden on transactions.
New Hampshire Unemployment Insurance Tax
Businesses in New Hampshire must also pay the Unemployment Insurance Tax, which funds unemployment benefits for workers who lose their jobs. This tax is managed by the New Hampshire Employment Security (NHES) and is calculated based on the wages paid to employees. The rate can vary depending on the employer’s experience rating and the overall economic conditions.
How to Pay New Hampshire Business Taxes?
Businesses in New Hampshire can pay their taxes through several methods. The NHDRA offers an online portal called Granite Tax Connect, which allows businesses to file returns, make payments, and manage their tax accounts. Mailing checks or money orders can also make payments to the NHDRA. Some businesses may opt for electronic funds transfer (EFT) for large payments, ensuring secure and timely transactions.
Exemptions for New Hampshire Business Taxes
Certain exemptions apply to New Hampshire business taxes. For the Business Profits Tax, businesses with gross receipts of $50,000 or less are exempt. For the Business Enterprise Tax, businesses with gross receipts of $200,000 or less or an enterprise value tax base of $100,000 or less are exempt. Additionally, nonprofit organizations may qualify for exemptions under specific conditions.
Due Dates for New Hampshire Business Taxes
The due dates for New Hampshire business taxes are critical for compliance. The Business Profits Tax and Business Enterprise Tax returns are generally due on the 15th day of the third month following the end of the taxable period. For most businesses, this means the due date is March 15 for calendar-year filers. Estimated tax payments are required quarterly, with due dates on the 15th day of April, June, September, and December.
Tax Return Forms Used for New Hampshire Business Taxes
Several forms are used for filing New Hampshire business taxes:
- Form NH-1120: Business Profits Tax Return for corporations.
- Form BET: Business Enterprise Tax Return.
- Form DP-2210/2220: Underpayment of Estimated Tax by Corporations/Partnerships and Proprietorships.
- Form DP-160: Extension of Time to File.
- Form NH-1040: Business Profits Tax Return for proprietorships and partnerships.