The sales tax for businesses in New Hampshire is currently 0%.
What Does The Sales Tax For Businesses In New Hampshire Mean?
When it’s about taxes, New Hampshire is categorised as the most business-friendly state for sellers and consumers. The state has no sales tax and income tax on wages but there is a 5% tax on interest and dividends. Known to be a low-tax state, New Hampshire is considered to have the fourth-highest property rates in the US, which is somewhere 2.05%.
A sales tax for businesses refers to the tax imposed by the government on the sale of specific sales and services. If we talk about the sales tax in New Hampshire, there is no sales tax imposed. This might bring a big relief for the business owners but they still do not fully ignore their duties of filing taxes.
|Income Tax||5% Interest & Dividends Tax|
Is There a Need To Collect New Hampshire Sales Tax For Your Ecommerce Business?
As residents of New Hampshire are not allowed to pay taxes on anything they purchase, the business owners are also not able to collect tax. The sales tax is imposed state-wise and New Hampshire doesn’t allow the collection of tax on any items that are purchased by people of that specific state.
Understanding Business Taxes In New Hampshire
New Hampshire maintains mainly two major business taxes. The first introduced was the Business Profits Tax (BPT) which was enacted in 1970. This business tax is imposed on income from conducting business activities within the state at the rate of 7.7% ending on or after 31st December 2019. Whereas the taxable period that is ending on or after the 31st, the BPT rate is minimised to 7.6%.
Another business tax that was enacted in 1993 is the Business Enterprise Tax (BET). This business tax is assessed on taxable enterprise value, a sum of all compensation paid and dividends paid by the business enterprise at a rate of .60% for taxable periods ending on or after 31st December 2019. For taxable periods ending on or after December 31st, 2022, the BET rate is reduced to .55%.
The taxable period beginning on or after 1st Jan 2019 requires the business enterprise with more than $217,000 of gross receipts or an enterprise value tax base of more than $108,000 must file a BET return. For taxable periods beginning on or after January 1st, 2021, the enterprise value tax base further changes to $222,000 or $111,000. Also, for the taxable periods ending on or after December 31st, 2022, the value will change to somewhere around $250,000.
New Hampshire Department of Revenue Administration
The Department of Revenue Administration of New Hampshire has the mission to administer the tax laws of the state most efficiently. The role is to collect the proper amount of taxes due in a manner that is worth the highest degree of public confidence in integrity.
Are There Any Tax Filing Requirements In New Hampshire?
As New Hampshire relies on Zero sales tax, so one doesn’t need to file tax as an individual. The state only imposes taxes on interest and dividends that is 5% on residents whose gross interest and dividends income exceeds $2,400 annually.
Therefore, the New Hampshire tax rate is 0% in 2022. But if you need any kind of assistance related to business sales tax for other US states, get assistance from us. At FreeCashFlow.io, we help online and eCommerce businesses with their accounting needs in the best possible way.