New Hampshire occupies a distinctive position in the tax landscape, and having worked with self-employed professionals in Manchester, Nashua, Portsmouth, and the Lakes Region, I appreciate why so many independent workers choose the Granite State. New Hampshire imposes no state income tax on earned income, including self-employment income, which gives freelancers and contractors a significant advantage. The state did previously tax interest and dividends, but that tax was fully repealed effective January 1, 2025. For self-employed workers, New Hampshire now offers one of the cleanest tax environments in the country.
Self Employment Tax Calculator
What Is Self-Employment Tax in New Hampshire?
Self-employment tax is the federal tax that independent workers pay to fund Social Security and Medicare. The 15.3% combined tax is split at 7.65% each between employees and employers, but self-employed individuals pay the full 15.3%. The Social Security portion is 12.4% on net earnings up to $176,100 for 2025 and $184,500 for 2026. The Medicare portion is 2.9% on all net income with no cap. An additional 0.9% Medicare surtax applies above $200,000 (single) or $250,000 (joint). You can deduct the employer-equivalent 7.65% from your AGI on your federal return. Self-employment tax and Schedule SE filing are required once net earnings reach $400.
New Hampshire State Tax Landscape for the Self-Employed
New Hampshire does not impose a state income tax on earned income, including wages, salaries, and self-employment income. The state’s Interest and Dividends Tax, which previously taxed investment income at 5%, was fully repealed effective January 1, 2025. This means New Hampshire now has no state income tax whatsoever on any form of income for individuals.
New Hampshire does have a Business Profits Tax (BPT) and a Business Enterprise Tax (BET) that may apply to self-employed individuals. The BPT is an 8.5% tax on business income for businesses with gross receipts exceeding $50,000. The BET is a 0.55% tax on the enterprise value tax base (compensation, interest, and dividends paid) for businesses with gross receipts exceeding $310,000 or an enterprise value tax base exceeding $155,000. BET paid can be credited against BPT liability.
Most sole proprietors with moderate gross receipts will be subject to the BPT if they exceed $50,000 in gross receipts. This is an important distinction from states like Wyoming, Alaska, and South Dakota, where self-employed workers face no state-level business taxes. The BPT filing deadline is April 15, and the tax is reported on Form NH-1040.
New Hampshire does not impose a state sales tax, and there are no local income taxes.
How to File Self-Employment Taxes in New Hampshire
On the federal side, report business income on Schedule C, carry net profit to Schedule SE, and include both on Form 1040. The federal filing deadline is April 15.
For New Hampshire, if your gross business receipts exceed $50,000, you must file Form NH-1040 for the Business Profits Tax. If your enterprise value tax base exceeds $155,000 or gross receipts exceed $310,000, you must also file for the Business Enterprise Tax. If you fall below these thresholds, you have no state filing requirement.
Quarterly Estimated Tax Payments in New Hampshire
Federal estimated payments are required if you expect to owe $1,000 or more. New Hampshire requires estimated BPT payments if your expected tax liability exceeds $200.
| Payment Period | Due Date |
|---|---|
| January 1 – March 31 | April 15 |
| April 1 – May 31 | June 15 |
| June 1 – August 31 | September 15 |
| September 1 – December 31 | January 15 of the following year |
Use Form 1040-ES for federal payments. New Hampshire BPT estimated payments are made through the state’s online system.
Tax Deductions and Credits for New Hampshire’s Self-Employed
Federal deductions remain critical for minimizing your tax burden. The 50% SE tax deduction, home office deduction (up to $1,500 simplified), health insurance premiums, retirement contributions (SEP-IRA up to 25%, Solo 401(k)), and business expenses are all deductible on your federal return. Vehicle mileage: 70 cents per mile for 2025.
| Deduction Category | Details |
|---|---|
| Self-Employment Tax Deduction | 50% of SE tax, reduces AGI automatically |
| Home Office | Simplified: $5/sq ft (max $1,500) or actual expenses |
| Health Insurance Premiums | Medical, dental, vision, long-term care |
| Retirement Contributions | SEP-IRA (up to 25% of net SE income), Solo 401(k) |
| Business Expenses | Supplies, software, advertising, professional fees |
| Vehicle/Mileage | 70 cents/mile (2025) or actual vehicle expenses |
Avoiding Common Pitfalls
Overlooking the Business Profits Tax
The most common mistake is assuming New Hampshire has no business taxes at all. If your gross receipts exceed $50,000, you owe the 8.5% Business Profits Tax on your net business income. This can be a significant obligation, so plan accordingly.
Confusing No Income Tax with No Tax Obligations
While New Hampshire has no individual income tax, the BPT and BET are business-level taxes that apply to self-employed individuals above the threshold amounts. Understanding these distinctions is essential.
Poor Recordkeeping
Maintain organized records of all income and expenses, especially since BPT is calculated on net business income. Accurate expense tracking directly reduces your state tax liability.
Final Thoughts on Self-Employment Tax in New Hampshire
New Hampshire’s absence of individual income tax on earned income, combined with the 2025 repeal of the Interest and Dividends Tax, makes it one of the most attractive states for self-employed professionals. The Business Profits Tax at 8.5% on net business income applies to those with gross receipts above $50,000, so it is important to factor this into your planning. Federal deductions for self-employment tax, health insurance, home office, and retirement contributions remain your primary tools for tax reduction. Stay current on federal estimated payments and BPT obligations, and keep thorough records.
Frequently Asked Questions
Does New Hampshire have an income tax?
New Hampshire does not impose a state income tax on earned income, including self-employment income. The state’s Interest and Dividends Tax was fully repealed effective January 1, 2025. However, the Business Profits Tax (8.5%) applies to businesses with gross receipts above $50,000.
What is the Business Profits Tax?
New Hampshire’s Business Profits Tax is an 8.5% tax on net business income for businesses with gross receipts exceeding $50,000. This applies to sole proprietors and self-employed individuals. The Business Enterprise Tax (0.55%) may also apply above higher thresholds.
When are estimated payments due in New Hampshire?
Federal estimated payments are due April 15, June 15, September 15, and January 15. New Hampshire BPT estimated payments follow the same schedule if your expected liability exceeds $200.
What deductions can I claim in New Hampshire?
Federal deductions include 50% of SE tax, health insurance, home office, retirement contributions, and business expenses. For BPT purposes, business expenses reduce your net business income, directly lowering your state tax.
