The New Hampshire Business Profits Tax is one of the main state taxes business owners need to understand when operating in New Hampshire. Commonly called the BPT, the tax applies to taxable business profits earned by qualifying business organizations conducting business activity within the state. This can affect corporations, partnerships, sole proprietorships, limited liability companies, fiduciaries, and other businesses organized for profit. For taxable periods ending on or after December 31, 2023, the New Hampshire Business Profits Tax rate is 7.5%. Businesses also need to watch the BPT filing threshold, estimated tax rules, Business Enterprise Tax requirements, apportionment rules for multistate businesses, and annual filing deadlines. Even if a company does not owe tax after credits and adjustments, it may still have filing responsibilities depending on its gross business income and other circumstances. Understanding how New Hampshire business taxes work can help owners budget properly and avoid an unpleasant surprise when the return is due.
What Is The New Hampshire Business Profits Tax?
The Business Profits Tax is a state tax imposed on taxable business profits from business activity conducted in New Hampshire.
The tax was enacted in 1970 and applies broadly to business organizations operating for gain or profit within the state. The New Hampshire Department of Revenue Administration, commonly called the DRA, administers the tax.
For taxable periods ending on or after December 31, 2023, the BPT rate is 7.5% of taxable business profits. The previous rate was 7.6% for taxable periods ending on or after December 31, 2022.
The BPT is separate from federal income tax. A business may therefore have both federal and New Hampshire tax obligations.
Who Has To File A BPT Return?
Not every small business automatically has to file a Business Profits Tax return.
For taxable periods beginning on or after January 1, 2025, a business organization generally must file a BPT return when its gross business income from all business activities exceeds $109,000. The threshold is periodically adjusted for inflation.
This threshold refers to gross business income, not simply the amount of profit left after expenses.
For example, a business could generate $150,000 in gross income but have only $40,000 in profit after expenses. Because its gross business income exceeds the applicable filing threshold, it may still be required to file a BPT return.
Business owners should therefore track total revenue as well as net profit.
How Is The Business Profits Tax Calculated?
The BPT is based on taxable business profits rather than gross sales alone.
The calculation can vary depending on the type of business. Generally, businesses determine their business profits and then make adjustments required under New Hampshire tax law.
After determining the taxable amount, the current 7.5% rate is applied.
For a simple illustration, suppose a business has $100,000 of New Hampshire taxable business profits.
A basic calculation would be:
$100,000 × 7.5% = $7,500
The actual amount owed may be different because deductions, adjustments, tax credits, apportionment, and other rules can affect the final liability.
What If A Business Operates In Multiple States?
Businesses operating both inside and outside New Hampshire may need to apportion income.
For taxable periods ending on or after December 31, 2022, New Hampshire generally uses a single sales factor for Business Profits Tax apportionment. This determines how much of a multistate company’s income is attributable to New Hampshire.
Businesses operating as part of a unitary business may also be subject to combined reporting requirements.
Multistate taxation can become complicated quickly, especially when sales are made online or customers are located across several states. Businesses in this situation may benefit from professional tax guidance.
When Is The New Hampshire BPT Return Due?
The filing date depends on the business structure.
For taxable periods beginning after December 31, 2015:
- Partnership returns are generally due on the 15th day of the third month after the taxable period ends.
- Corporate, proprietorship, fiduciary, and combined returns are generally due on the 15th day of the fourth month after the taxable period ends.
For many calendar-year corporations and sole proprietorships, this means an April filing deadline.
Businesses should verify the exact due date each year, especially when a normal deadline falls on a weekend or legal holiday.
Are Estimated BPT Payments Required?
Businesses expecting a New Hampshire business tax liability greater than $200 generally must make estimated payments.
Four estimated payments are required, with each normally equal to 25% of the estimated tax liability.
They are generally due on the 15th day of the:
- Fourth month
- Sixth month
- Ninth month
- Twelfth month
For calendar-year businesses, this commonly means April, June, September, and December.
Making these payments on time can help businesses avoid underpayment charges.
What Is The Business Enterprise Tax?
The Business Enterprise Tax, or BET, is another New Hampshire business tax that may apply separately from the BPT.
The BET is based on a business’s enterprise value tax base, which generally includes compensation, interest, and dividends. The current BET rate is 0.55% for taxable periods ending on or after December 31, 2022.
An important benefit is that BET paid may generally be used as a credit against the Business Profits Tax.
Because BPT and BET filing thresholds and calculations are different, businesses should review both taxes rather than assuming that filing one automatically covers the other.
How Can Businesses File And Pay?
New Hampshire provides Granite Tax Connect, its online tax portal, for managing many business tax filings and payments.
Business owners should keep accurate records of revenue, expenses, estimated payments, credits, and prior-year tax information throughout the year.
Waiting until the filing deadline to organize everything can turn a fairly manageable return into a much bigger project.
Checking current forms and instructions from the New Hampshire DRA is also important because filing thresholds, forms, and other requirements can change over time.
Frequently Asked Questions
What Is The New Hampshire Business Profits Tax Rate?
The current rate is 7.5% for taxable periods ending on or after December 31, 2023.
What Is The BPT Filing Threshold?
For taxable periods beginning on or after January 1, 2025, the gross business income threshold is more than $109,000.
Do Businesses Make Estimated BPT Payments?
Yes, generally when the expected business tax liability exceeds $200.
Is The BPT The Same As The BET?
No. The Business Profits Tax and Business Enterprise Tax are separate New Hampshire taxes with different calculations.