New Hampshire LLC Taxes Explained: BPT, BET & the S-Corp Catch (2026)
New Hampshire has no personal income tax and no sales tax — but LLCs above certain thresholds owe the Business Profits Tax and Business Enterprise Tax, and the state doesn't recognize federal S-Corp elections. Here's every layer, with an estimator and the one detail that changes standard S-Corp advice.
For taxable periods beginning on or after January 1, 2025 (the 2025–2026 threshold period), the BPT filing test is gross business income over $109,000. The BET filing test is gross receipts over $298,000 OR enterprise value tax base over $298,000. Thresholds are adjusted biennially. The BPT rate is 7.5% of taxable business profits and BET is 0.55% of the taxable enterprise value base (compensation, interest and dividends with applicable adjustments). Filing thresholds are not exemptions subtracted from the tax base; BET credit against BPT and other return rules require separate calculations.
- Personal income tax
- None on wages
- Business Profits Tax (BPT)
- 7.5% above ~$109K gross income
- Business Enterprise Tax (BET)
- 0.55% on comp/interest/dividends
- Sales tax
- None
- S-Corp state tax treatment
- Special NH rules apply
- Quarterly estimates required
- If tax due > $500/yr
The Tax Layers in New Hampshire
Federal: income + self-employment tax
Pass-through profits hit your 1040 at your federal bracket, plus 15.3% SE tax on 92.35% of net profit — unaffected by New Hampshire's state-level rules.
New Hampshire personal income tax: $0
No general tax on wages or personal income. The former 5% interest-and-dividends tax was fully repealed for 2025 and later.
Business Profits Tax: 7.5% (above ~$109K gross income)
For taxable periods beginning on or after January 1, 2025 (the 2025–2026 threshold period), the BPT filing test is gross business income over $109,000. The BET filing test is gross receipts over $298,000 OR enterprise value tax base over $298,000. Thresholds are adjusted biennially. The BPT rate is 7.5% of taxable business profits and BET is 0.55% of the taxable enterprise value base (compensation, interest and dividends with applicable adjustments). Filing thresholds are not exemptions subtracted from the tax base; BET credit against BPT and other return rules require separate calculations.
Business Enterprise Tax: 0.55%
For taxable periods beginning on or after January 1, 2025 (the 2025–2026 threshold period), the BPT filing test is gross business income over $109,000. The BET filing test is gross receipts over $298,000 OR enterprise value tax base over $298,000. Thresholds are adjusted biennially. The BPT rate is 7.5% of taxable business profits and BET is 0.55% of the taxable enterprise value base (compensation, interest and dividends with applicable adjustments). Filing thresholds are not exemptions subtracted from the tax base; BET credit against BPT and other return rules require separate calculations.
Estimate Your Combined Bill
New Hampshire LLC Tax Estimator
Limited 2026 single-owner illustration: displayed gross income assumes 60% profit, no other earnings, Social Security wage base $184,500 and Medicare. BPT is illustrated on that assumed profit only when the gross-income test is met. BET, its credit against BPT, apportionment, deductions, federal income tax, QBI and elections are NOT modeled. This is not a complete return or final tax bill.
The S-Corp Catch (Read This Before You Elect)
New Hampshire does not follow the federal S-Corp election the same way most states do. If you file Form 2553 with the IRS to elect S-Corp taxation, that election works federally — you can still pay yourself a reasonable salary and take distributions that avoid the 15.3% SE tax at the federal level. But for New Hampshire's own Business Profits Tax, your LLC is still taxed as if it were a C-corporation, regardless of your federal election. This is different from nearly every other state in this series, where an S-Corp election typically flows through cleanly at the state level too.
What this means practically: the federal SE-tax savings from an S-Corp election still apply in New Hampshire. But don't assume your state tax treatment mirrors your federal election the way it would almost anywhere else — model your BPT exposure with a New Hampshire-specific CPA before and after an S-Corp election, since the state-level math doesn't follow the usual pattern.
The Business Profits Tax, in Detail
For taxable periods beginning on or after January 1, 2025 (the 2025–2026 threshold period), the BPT filing test is gross business income over $109,000. The BET filing test is gross receipts over $298,000 OR enterprise value tax base over $298,000. Thresholds are adjusted biennially. The BPT rate is 7.5% of taxable business profits and BET is 0.55% of the taxable enterprise value base (compensation, interest and dividends with applicable adjustments). Filing thresholds are not exemptions subtracted from the tax base; BET credit against BPT and other return rules require separate calculations.
The Business Enterprise Tax, in Detail
For taxable periods beginning on or after January 1, 2025 (the 2025–2026 threshold period), the BPT filing test is gross business income over $109,000. The BET filing test is gross receipts over $298,000 OR enterprise value tax base over $298,000. Thresholds are adjusted biennially. The BPT rate is 7.5% of taxable business profits and BET is 0.55% of the taxable enterprise value base (compensation, interest and dividends with applicable adjustments). Filing thresholds are not exemptions subtracted from the tax base; BET credit against BPT and other return rules require separate calculations.
Your New Hampshire Tax Calendar
| Date | What's Due |
|---|---|
| Quarterly (if tax due > $500/yr) | Estimated BPT/BET payments |
| Mar 15 | Form 1065 (multi-member LLCs) + K-1s, federally |
| Apr 1 | Annual report to the Secretary of State ($100/$102) — window opens Jan 1 |
| Apr 15 | Form 1040 federally, and Form BT-Summary (BPT/BET) for calendar-year filers |
Evaluate BPT and BET separately using actual income, receipts and enterprise value. A federal S election does not establish the NH tax result or guarantee a lower bill. Use the current NH entity-specific forms, deductions and credits; a generic profit threshold or fixed assumed margin is insufficient.
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Date-Scoped BPT and BET Thresholds
For taxable periods beginning on or after January 1, 2025 (the 2025–2026 threshold period), the BPT filing test is gross business income over $109,000. The BET filing test is gross receipts over $298,000 OR enterprise value tax base over $298,000. Thresholds are adjusted biennially. The BPT rate is 7.5% of taxable business profits and BET is 0.55% of the taxable enterprise value base (compensation, interest and dividends with applicable adjustments). Filing thresholds are not exemptions subtracted from the tax base; BET credit against BPT and other return rules require separate calculations.
NH DRA2025 threshold adjustment.
New Hampshire LLC — FAQ
Ahmad Adil is the founder and CEO of LLC School. For filing and ongoing compliance, confirm the requirements with the responsible state agency. This is educational information, not legal or tax advice.
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