Live (Income Tax) Free or Die

There's some excellent news pending for New Hampshire business owners that we've been waiting to share with you! There is currently a law in the works that would reduce business taxes in the state, and then, over a five-year period, eliminate the interest and dividend tax, making it only the ninth state to do so!

We know what you're thinking...I thought there wasn't any income tax in New Hampshire. Currently, this is only a half-truth. While the state doesn't tax personal earned income, it actually does tax any income you gain from interest and dividends. So technically, there is an income tax. If this law were to pass, New Hampshire would become the only state in the Northeast to be truly income tax-free. This money wouldn't only be coming from the interest you earn from the banks but also from the distribution of profits that an S-Corp pays to its NH shareholders.

So why is this being proposed when it looked like we were potentially being set up for another tax increase? It turns out that New Hampshire's deficits aren't as high as projected coming out of COVID, and the state's finances are in much better shape than most. And besides putting money in your pocket, this will also give businesses a competitive advantage bringing talent and entrepreneurship to the state and driving productivity. House Bill 10 looks to lower the Business Profit Tax from 7.7% to 7.6% and the Business Enterprise Tax (BET) from 0.6% to 0.55% for the current tax year and these taxes will continue to drop in the following years. 

Currently, this bill is being retained in the house, but if you want to track its progress and see when the state could potentially be putting money back in your pocket, visit this website!