How Individuals are Taxed in New Hampshire
The State of New Hampshire’s Department of Revenue Administration is responsible for collecting New Hampshire taxes with public confidence and to assist local municipalities in budgeting, finance and the appraisal of real estate.
New Hampshire does not have a general sales tax or an income tax on an individual’s reported W-2 wages. The state relies more on property taxes for revenue and also receives substantial revenue from taxes on motor fuels, tobacco products and alcoholic beverages sold through state liquor stores.
NH Sales Tax
There is no general sales tax however, there are some specific sales taxes: 9% tax on restaurants, prepared food, hotel rooms and car rentals; 55 cents per megawatt hour on electricity, 7% on telecommunication services, plus additional taxes on real estate transfers and alcohol.
Personal Income Tax
There is no personal income tax in New Hampshire. The state income tax is limited to an assessment of 5% on interest and dividend income of more than $2400 annually ($4800 for joint filers). Exemptions do apply which include a $1,200 exemption for residents who are 65 or older.
Business Profits Tax
The state assesses a tax of 8.5% for income generated by conducting business activity within the state. Any business organization operating for profit with gross income over $50,000 is subject to the tax.
Property taxes are collected by local municipalities based upon assessed valuation with most communities collecting the tax semi-annually. A state education tax is also levied on each property owner. An elderly exemption for property taxes can be age, net income limits, including Social Security income, and net asset limits. In addition, there is a low and moderate property tax relief program for those that qualify.
Real Estate Transfer Tax
A tax on the transfer, sale or granting of real property or an interest in real property is taxed on both the buyer and the seller and paid to the Register of Deeds in the county where the property is located.
Inheritance and Estate Taxes
New Hampshire’s Legacy & Succession Tax was repealed in 2002 and therefore there are no inheritance or estate tax.
Contact Carol Doleac for specific information about New Hampshire taxes and specifically taxes related to real estate.