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Businesses in New Hampshire are subject to a number of taxes. It is important that taxes not only be paid on a timely basis, but that they are also planned for properly in advance. In addition to withholding (and submitting to the taxing authorities) employee's taxes from employee paychecks, employers are also liable for additional taxes on employee compensation. Employers who have employees residing in other states should also consider the tax consequences of such employment.
Depending on the type of legal business entity your business is operating under, you may also have additional personal or business tax liabilities. The nature of your business will also dictate other tax liabilities for which you may be subject. While most of the taxes shown below are the legal responsibility of the business to report and to pay to the appropriate taxing authority, many of the taxes should be collected from the businesses' customers at the time of sale. The fact that you do not collect the appropriate taxes from your customers will not remove your liability to pay said taxes to the taxing authority! Even if you do not collect the correct amount of taxes from your customers, you will still be responsible to pay them to the taxing authority. This can be an extremely devastating mistake. Be sure to seek professional tax advice.
Because of the complexity of tax matters, all SCORE clients are advised to seek professional advice from a registered Certified Public Accountant (CPA) and/or a licensed attorney specializing in tax law. Seacoast Chapter 185 provides a registry of Local Resources which contains information on accountants, lawyers, and other useful business resources.
While all reasonable efforts have been made for accuracy, the following list should be considered a guideline for planning and budgeting purposes. SCORE makes no representations as to the accuracy or completeness of the below information, nor does SCORE guarantee that these rates or payment schedules have been updated as tax laws and rates may change. The information contained below was compiled in most part from http://www.revenue.nh.gov/.
Payroll Related Taxes:
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Self-Employment Tax (Federal)
15.3%, which is a total of 12.4% for social security and 2.9% for Medicare. Maximum earnings subject to the social security tax is $106,800. All net earnings of at least $400 are subject to the Medicare.
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Matching Social Security Tax (Federal)
6.2% of Gross Pay on first $106,800 of Gross Pay per employee. For old-age, survivors, and disability insurance.
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Matching Medicare Tax (Federal)
1.45% x Gross Pay per employee (no limit on covered wages) For hospital insurance.
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NH Unemployment Tax (SUTA)
0.05%-7% of the first $10,000 effective January 1, 2010, $12,000 effective January 1, 2011, and $14,000 effective January 1, 2012 of Gross Pay per employee (State sets rate: 3.2% if no prior experience)
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Federal Unemployment Tax (FUTA)
6.2% (Less up to 5.4% of SUTA paid) of the first $7,000 of Gross Pay per employee
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NH Business Enterprise Tax
See below
NH State Income Tax:
NOTE: NH does have a State Income tax, in spite of what is often claimed. Businesses pay 8.5% income tax on profits; individuals, partnerships, and LLCs pay 5% income tax on interest and dividend income; and employers pay 0.75% income tax on employee incomes (wages, salaries, bonuses, commissions, etc.).
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NH Business Profits Tax (NH BPT)
8.5% on Income from business conducted in NH (If Gross Sales > $50,000)
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NH Interest and Dividend Tax
5% tax assessed on interest income and dividend income of resident individuals, partnerships, limited liability companies, and fiduciaries
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NH Business Enterprise Tax
See Below (includes 0.75% tax on employee wages, salaries, fees, bonuses, commissions and other compensation)
Other State Taxes:
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NH Business Enterprise Tax (NH BET)
0.75% of Total Enterprise Base (Total Compensation, Interest Expense, and Dividend Expense) (If Sales > $150,000 or Enterprise Base > $75,000)
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NH Workmen's Compensation
Every employer who has any employees, full or part-time, is required to cover these employees with workers' compensation insurance written by a carrier. (see insurance)
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NH Education Property Taxes
$1.78 to $3.30 per $1,000 (for FY-2009) of total equalized valuation
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Local Property Taxes
Includes Town, Local Education, and County property taxes. Refer to local taxing jurisdiction
Federal Taxes (not mentioned above, not a complete list):
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Federal Income Tax
Based on Taxable Income
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Environmental Tax
On the sales, use, or import of ozone-depleting chemicals, or products containing or manufactured with these chemicals
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Communications & Air Transportation Tax
Tax on communications services and air transportation
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Fuel Taxes
Tax on many types of fuels
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Heavy Equipment Sales Tax
Tax on sale of heavy trucks, trailers, and tractors
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Manufacturers Tax
Tax on the sale or use of a variety of different articles
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Other Federal Taxes
Duties, Tariffs, Excise, Estate taxes, and other taxes; refer to professional tax accountant for advice
Other Miscellaneous NH Taxes:
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NH Motor Vehicle Rental Tax
8% of the rental value
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NH Tobacco Sales Tax: Cigarettes
$1.78 on each pack of 20 cigarettes, and $1.00 on each pack of 25 cigarettes
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NH Tobacco Sales Tax: Non-cigarettes
48.59% tax of the wholesale sales price
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NH Communications Services Tax
7% of communications services provided
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NH Electricity Consumption Tax
$.00055 per kilowatt hour
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NH Insurance Premium Tax
1.25% of all insurance premiums collected
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NH Insurance Surplus Lines Tax
3% of surplus lines insurance coverage premiums collected
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NH Medicaid Enhancement Tax
5.5% of net patient services revenue of every hospital
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NH Utility Property Tax
$6.60 per $1,000 valuation of utility property
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NH Meals & Rentals Tax
9% tax is assessed upon patrons of hotels and restaurants, on room charges and meals
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NH Fuels Tax
Tax varies based on type of fuel, purchaser, and where consumed
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NH Private Car Tax
Tax based on the market value
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NH Railroad Tax
Tax based on market value of railroad related property
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NH Timber Tax
10% of the stumpage value at the time of cutting
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NH Excavation Tax
$0.02 per cubic yard
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NH Real Estate Transfer Tax
$1.50 per $100, of the price or consideration for such sale, grant, or transfer (split equally by buyer and seller)
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NH Current Use Tax
10% of the value of land upon change in use
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NH Inheritance and Estate Tax
18% tax is assessed upon property passing at death (repealed for all deaths occuring on or after January 1, 2003)
When Payments Are Due (for selected taxes only):
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Federal Tax Withheld
Monthly – If Total Taxes paid for prior year were $50,000 or less
Semi-weekly – If Total Taxes paid for prior year were greater than $50,000
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State Tax Withheld
See Maine or Massachusetts Withholding Forms
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Social Security and Medicare Tax Withheld
Monthly – If Total Taxes paid for prior year were $50,000 or less
Semi-weekly – If Total Taxes paid for prior year were greater than $50,000
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State Unemployment Tax
On Last Day of Month Following the Quarter End
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Federal Unemployment Tax
On Last day of Month Following the Quarter End
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NH BPT & BET
Quarterly Estimated Payments on 4/15, 6/15, 9/15 and 12/15
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Federal Income Tax
Quarterly Estimated Payments on 4/15, 6/15, 9/15 and 1/15
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Workmen’s Compensation
Determined by Contract with Insurance Carrier |
