New Hampshire Tax Relief: BPT, BET & Settlement Options
Owe New Hampshire business taxes or received a notice from the NH Department of Revenue Administration (NH DRA)? New Hampshire has no personal income tax on wages and no general sales tax — but the state actively collects Business Profits Tax, Business Enterprise Tax, Meals & Rooms Tax, and other obligations. Know your options before you respond. We review your NH tax balance, notice, deadline, payment options, and collection risk so you know what to do next.
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New Hampshire Tax Relief Overview
Owing New Hampshire state taxes is different from owing the IRS — and very different from states with income taxes. The New Hampshire Department of Revenue Administration (NH DRA) has its own rules, deadlines, and collection tools. Understanding what taxes New Hampshire actually has is the first step.
New Hampshire Has No Personal Income Tax on Wages
New Hampshire does not tax individual wage income (W-2). The state's Interest and Dividends (I&D) Tax, which previously applied to passive investment income, was fully repealed effective January 1, 2025. As of 2025, New Hampshire residents pay no state income tax of any kind on personal income.
New Hampshire Has No General Sales Tax
New Hampshire does not have a broad-based sales tax. The only statewide consumption tax is the 8.5% Meals and Rooms (Rentals) Tax on restaurant meals, hotel rooms (less than 185 days), and motor vehicle rentals.
New Hampshire's primary state taxes are:
- Business Profits Tax (BPT) — 7.5% on taxable business profits (RSA Chapter 77-A)
- Business Enterprise Tax (BET) — 0.55% on enterprise value tax base (RSA Chapter 77-E)
- Meals & Rooms Tax — 8.5% on meals, room rentals, and car rentals (RSA Chapter 78-A)
- Real Estate Transfer Tax — $0.75 per $100 of consideration, charged separately to both buyer and seller (combined effective rate of $1.50 per $100) (RSA 78-B)
- Property Tax — assessed and collected at the municipal level (RSA Chapters 72-82)
Depending on your situation, you may need one or more of the following:
- A payment plan (Form CD-400) to pay over time
- A CD-410 settlement offer to settle for less than the full amount
- An appeal if you dispute an assessment
- Penalty relief if penalties make the balance unpayable
- Lien release or levy resolution if collection action has started
- Filing help if you have unfiled New Hampshire tax returns
I&D Tax Fully Repealed — But Pre-2025 Liabilities Still Collectible
The Interest and Dividends Tax was fully repealed effective January 1, 2025. However, taxable periods beginning on or before December 31, 2024, remain subject to audit and collection. The repeal does not provide amnesty for pre-repeal tax years. If you owe I&D Tax for years 2024 or earlier, the NH DRA can still pursue collection.
New Hampshire Tax Relief Options at a Glance
New Hampshire State Taxes Explained
Business Profits Tax (BPT) — 7.5%
The BPT is assessed on taxable business profits of business organizations conducting business activity within New Hampshire (RSA Chapter 77-A).
- Rate: 7.5% (for periods ending on or after December 31, 2023)
- Previous rate: 7.6% (for periods ending on or after December 31, 2022)
- Filing threshold: $109,000 gross business income (periods beginning on or after January 1, 2025)
- Apportionment: Single sales factor for multi-state businesses
- Combined reporting: Required for unitary businesses
Source: NH DRA — Business Taxes
Business Enterprise Tax (BET) — 0.55%
The BET is assessed on the taxable enterprise value tax base — compensation paid/accrued + interest paid/accrued + dividends paid (RSA Chapter 77-E).
- Rate: 0.55% (for periods ending on or after December 31, 2022)
- Filing threshold: $298,000 of gross receipts or enterprise value tax base (periods beginning on or after January 1, 2025)
- BET credit: BET paid can be used as a credit against BPT liability
- Carryforward: Unused credits carry forward 10 taxable periods
Source: NH DRA — Business Taxes
Interest & Dividends Tax — FULLY REPEALED 1/1/2025
The I&D Tax was completely repealed effective January 1, 2025, under HB 2 (2023 session), signed by Governor Chris Sununu.
- Status: REPEALED for taxable periods beginning on or after January 1, 2025
- Final rate before repeal: 3% (for periods ending on or after December 31, 2024)
- Original repeal date: December 31, 2026 (accelerated to 2024)
- Important: Pre-repeal years remain subject to audit and collection
Source: NH DRA — I&D Tax Repeal
Meals & Rooms (Rentals) Tax — 8.5%
Tax on meals at restaurants, room rentals at hotels (less than 185 consecutive days), and motor vehicle rentals (RSA Chapter 78-A).
- Rate: 8.5% (for periods beginning on or after October 1, 2021)
- Timely filing commission: 3% for operators who file and pay timely
- License renewal: Expires June 30 in odd-numbered years
- Filing: Monthly; electronic filing required for operators with $25,000+ in taxable revenue
Source: NH DRA — Meals & Rooms Tax
What New Hampshire Tax Notice Did You Receive?
Select your notice type for a quick explanation of what it means and your options.
What the New Hampshire Department of Revenue Administration Can Do to Collect
If you owe New Hampshire state taxes and do not address the balance, the NH DRA has a range of collection tools. New Hampshire is a debtor-friendly state, but that does not mean tax debts go away. The DRA can still take meaningful collection action.
Add Penalties and Interest
Late filing penalty: 5% of tax due or $10 per month (max 25%). Late payment penalty: 10% of nonpayment. Interest: 9% for underpayments in 2026 (down from 10% in 2025). These add up quickly. Penalty relief may be available for reasonable cause.
Send Collection Notices
The NH DRA sends a series of notices before taking enforced collection action. Ignoring these notices can lead to more serious consequences, including liens, levies, distraint, property seizure, and business license suspension.
File a Tax Lien
The DRA can record a lien against your property to secure the state's interest in an unpaid tax debt. Liens can affect credit, title, and the ability to sell or refinance property.
Levy Bank Accounts
The DRA can freeze and seize funds directly from your bank account to satisfy an unpaid tax debt.
Distraint and Property Seizure
In certain cases, the DRA can seize and sell personal or business property to satisfy a tax debt.
Suspend Business Licenses
For unpaid business taxes such as BPT, BET, or Meals & Rooms Tax, the DRA can move to suspend or revoke a business's operating license or registration.
New Hampshire Is Extremely Debtor-Friendly
New Hampshire's exemption laws are among the most generous in the country — including a large homestead exemption and broad personal property exemptions (see the Exemptions section below). Federal consumer protection limits on wage garnishment (CCPA) still apply to any garnishment of wages. However, these protections limit what creditors, including the state, can reach — they do not eliminate the underlying tax debt, and the DRA retains lien, levy, distraint, and license-suspension authority regardless of these exemptions (RSA 512:21(l)).
New Hampshire Tax Payment Plans (Installment Agreements)
If you cannot pay your New Hampshire state tax balance in full, a payment plan may be an option. New Hampshire uses Form CD-400 (Request for Installment Payment Agreement) to request a payment plan.
Source: NH DRA — Form CD-400. Approval is discretionary. No guarantee of approval.
Which New Hampshire Tax Relief Option Fits Your Situation?
New Hampshire Tax Settlement (Form CD-410)
If you cannot pay your New Hampshire tax balance in full within a reasonable time, a CD-410 settlement offer allows you to propose paying less than the full amount owed. The DRA evaluates whether the proposed settlement represents the maximum amount it could reasonably expect to collect. Settlement requires complete financial disclosure, and approval is discretionary — there is no guarantee your offer will be accepted.
New Hampshire Penalty Relief
Penalty relief asks New Hampshire to reduce or remove penalties when allowed under state rules. The Commissioner of Revenue Administration can abate taxes and additions to tax that are uncollectible or for reasonable cause.
Reasonable Cause Standard
To qualify for penalty abatement, a taxpayer must show that the failure to file or pay on time was due to reasonable cause and not willful neglect. General claims of hardship are not sufficient — you must provide specific facts and documentation.
Penalty Rates in New Hampshire
New Hampshire Tax Appeals
If you disagree with a New Hampshire tax assessment — most commonly a property tax assessment — you have the right to appeal to the Board of Tax and Land Appeals (BTLA). The deadline to file an appeal with the BTLA is September 1 following the notice of tax. A nonrefundable filing fee of $65 applies. Appeals are filed with the BTLA at 107 Pleasant Street, Concord, NH. Missing the September 1 deadline can forfeit your right to challenge the assessment for that tax year.
New Hampshire Tax Liens
Property Tax Liens
Under RSA Chapter 80, a tax lien attaches to real estate when property taxes become delinquent. Key facts:
- Recording: Tax lien is recorded at the county Registry of Deeds
- Redemption period: 2 years and 1 day from execution of tax lien (RSA 80:69)
- Interest rate: 14% per annum on lien amount after lien execution (confirmed current rate — reduced from 18% for liens executed before April 1, 2019)
- Tax deed: Municipality receives tax deed to the entire property if not redeemed within 2 years and 1 day
- Challenge limit: No action to contest tax deed after 10 years from recording (RSA 80:78)
State Tax Liens, Levies, and Garnishment
For BPT, BET, Meals & Rooms Tax, and pre-2025 I&D Tax debts, the NH DRA can record a lien against your property, levy bank accounts, and pursue wage garnishment subject to New Hampshire's exemption laws and the federal Consumer Credit Protection Act (CCPA) limits on wage garnishment. If your account has been levied or a lien has been filed, act quickly — a levy or lien may be lifted or released in certain situations, but the timeline can be tight, and there is no guarantee of release.
New Hampshire Exemptions from Collection
New Hampshire law provides significant exemptions that protect certain property and income from collection. These are among the most generous in the nation.
Homestead Exemption
$400,000 per person, with a combined cap of $550,000 for all owners of the same property — protects equity in your primary residence (RSA 480:1, effective January 1, 2026). This is a substantial increase from the prior $120,000 per person / $240,000 for married couples that applied through the end of 2025.
Personal Property Exemptions
- Wearing apparel (RSA 511:2)
- Household furniture up to $3,500 (RSA 511:2)
- Provisions and fuel up to $400 (RSA 511:2)
- Tools of occupation up to $5,000 (RSA 511:2)
- One automobile up to $10,000 (RSA 511:2)
- Jewelry up to $500 (RSA 511:2)
- Interest in other property up to $1,000 plus $7,000 unused exemptions (RSA 511:2)
Income & Benefit Exemptions
New Hampshire also exempts retirement plans (no dollar limit), Social Security benefits, unemployment compensation, and workers' compensation from collection by creditors, in addition to the wage garnishment protections available under the federal Consumer Credit Protection Act (CCPA).
Important: These exemptions protect certain assets from general creditor collection, but they do not eliminate a New Hampshire tax debt. The NH DRA can still file liens, levy non-exempt bank accounts, seize non-exempt property through distraint, and suspend business licenses to collect unpaid state taxes.
New Hampshire Voluntary Disclosure Program
If you have unfiled New Hampshire business tax returns and have not yet been contacted by the DRA, the Voluntary Disclosure Program (Form Rev 2910) may allow you to come forward with a limited look-back period and reduced penalty exposure. This program is only available before the DRA initiates contact regarding the unfiled periods.
Unfiled New Hampshire Tax Returns
If you have not filed New Hampshire business tax returns for one or more periods, that can block most resolution options. The DRA may estimate your tax and issue assessments based on those estimates — sometimes higher than what you actually owe. Filing accurate returns can sometimes reduce an incorrect balance, and getting current on filings is generally required before applying for a payment plan, CD-410 settlement, or penalty relief.
New Hampshire Business Tax Debt: BPT and BET
Business tax debt in New Hampshire involves the Business Profits Tax (BPT) and Business Enterprise Tax (BET). Because New Hampshire has no general sales tax and no personal income tax on wages, these two taxes — along with the Meals & Rooms Tax for applicable businesses — are the primary state tax obligations for New Hampshire businesses. BPT and BET issues can compound quickly with penalties and interest at 9%. If you have unfiled returns, missed estimates, or an outstanding balance, get help before the DRA escalates collection.
New Hampshire Tax Interest Rates
Interest rates on underpayments and overpayments are recomputed annually under RSA 21-J:28, II.
Source: NH DRA — Interest Rates
New Hampshire Statute of Limitations
New Hampshire generally allows the DRA to assess additional tax within a limited period after a return is filed, with no limitation period applying if a return was never filed or was fraudulent. Confirm the specific limitation period applicable to your tax type and situation with the DRA or a qualified tax professional, since periods can vary by tax type.
New Hampshire Tax Relief Tools & Resources
Use these New Hampshire resources to understand your balance, payment options, and rights. Then request a review if the numbers show the balance is growing or collection is already active.
New Hampshire Government Resources
These are the official New Hampshire sources for tax information, payment plans, appeals, and rules. Always check the official source for the most current information.
- New Hampshire Department of Revenue Administration (NH DRA) ↗ — Official tax agency portal
- Granite Tax Connect (GTC) ↗ — Online account portal for taxpayers
- NH DRA — Business Taxes ↗ — BPT and BET information
- NH DRA — I&D Tax Repeal ↗ — Official repeal announcement
- NH DRA — Meals & Rooms Tax ↗ — M&R tax information
- NH DRA — Taxpayer Bill of Rights ↗ — Taxpayer protections
- NH DRA — Interest Rates ↗ — Current underpayment/overpayment rates
- Board of Tax and Land Appeals (BTLA) ↗ — Property tax appeals
- Form CD-400 — Payment Plan Request ↗
- Form CD-410 — Settlement Agreement Offer ↗
Not Sure What to Do With Your New Hampshire Tax Situation?
Select the card that matches your situation to jump to the relevant section.
Frequently Asked Questions About New Hampshire Tax Relief
Does New Hampshire have a state income tax?
No. New Hampshire does not tax individual wage income. The state's Interest and Dividends (I&D) Tax, which applied only to passive investment income (not wages), was fully repealed effective January 1, 2025. As of 2025, New Hampshire residents pay no state income tax of any kind on personal income. However, taxable periods beginning on or before December 31, 2024, remain subject to audit and collection for I&D Tax.
Does New Hampshire have a sales tax?
No. New Hampshire does not have a broad-based sales tax. The only statewide consumption tax is the 8.5% Meals and Rooms (Rentals) Tax, which applies to restaurant meals, hotel room rentals of less than 185 consecutive days, and motor vehicle rentals.
What is New Hampshire's Business Profits Tax?
The Business Profits Tax (BPT) is assessed on the taxable business profits of business organizations conducting business activity within New Hampshire under RSA Chapter 77-A. The rate is 7.5% for periods ending on or after December 31, 2023 (down from 7.6% previously). The filing threshold is $109,000 in gross business income for periods beginning on or after January 1, 2025. Multi-state businesses apportion income using a single sales factor, and unitary businesses must use combined reporting.
What is New Hampshire's Business Enterprise Tax?
The Business Enterprise Tax (BET) is assessed on the enterprise value tax base — compensation paid or accrued, plus interest paid or accrued, plus dividends paid — under RSA Chapter 77-E. The rate is 0.55% for periods ending on or after December 31, 2022. The filing threshold is $298,000 of gross receipts or enterprise value tax base for periods beginning on or after January 1, 2025. BET paid can be credited against BPT liability, and unused credits carry forward for 10 taxable periods.
Can I get a payment plan for New Hampshire state taxes?
Yes. New Hampshire uses Form CD-400 (Request for Installment Payment Agreement), which can be filed online via Granite Tax Connect or mailed to the NH DRA Collections Division. Payment frequency can be weekly, biweekly, or monthly, and monthly payment dates cannot be later than the 28th of the month. Approval requires waiving existing appeal rights for the covered tax type and periods, and you must remain current on all filing obligations while the plan is active. Interest continues to accrue during the plan. Approval is discretionary.
Does a New Hampshire payment plan stop penalties and interest?
No. A payment plan lets you pay over time, but interest continues to accrue on the unpaid balance during the plan — 9% for 2026. Penalties already assessed remain unless separately abated for reasonable cause. If you default, collection action, including liens and levies, may resume immediately.
Does New Hampshire have a settlement or offer-in-compromise program?
Yes. New Hampshire uses Form CD-410 for tax settlements. This allows a taxpayer who cannot pay the full balance within a reasonable time to propose a lesser amount, provided the settlement represents the maximum amount the DRA could reasonably expect to collect. There is no fixed deadline, but the offer requires full financial disclosure, and approval is discretionary.
Can New Hampshire waive tax penalties?
Yes. The Commissioner of Revenue Administration can abate taxes and additions to tax that are uncollectible or where reasonable cause is shown. Qualifying circumstances include serious illness or disability, natural disasters, unavoidable absence, destruction of records by casualty, death of an immediate family member, or other circumstances demonstrating a good faith effort to comply. General claims of hardship are not sufficient — you must provide specific facts and documentation.
How do I appeal a New Hampshire tax assessment?
For property tax assessments, appeals are filed with the Board of Tax and Land Appeals (BTLA) at 107 Pleasant Street, Concord, NH. The deadline is September 1 following the notice of tax, and a nonrefundable $65 filing fee applies. Missing the deadline can forfeit your right to challenge the assessment for that year.
How does New Hampshire property tax work?
Property tax liens attach when taxes become delinquent and are recorded at the county Registry of Deeds. The redemption period is 2 years and 1 day, with interest accruing at 14% per annum on the recorded lien amount (RSA 80:69). If the property is not redeemed within that period, the municipality receives a tax deed to the entire property. No action to contest a tax deed may be brought more than 10 years after recording (RSA 80:78).
Is New Hampshire really a debtor-friendly state?
Yes. New Hampshire offers a $400,000 homestead exemption per person ($550,000 combined cap for multiple owners, effective January 1, 2026), along with exemptions for retirement plans (no dollar limit), Social Security benefits, unemployment compensation, workers' compensation, and other protections. However, these protections do not eliminate tax debt — the NH DRA can still file liens, levy bank accounts, seize property through distraint, and suspend business licenses.
What if I have unfiled New Hampshire business tax returns?
Unfiled returns can block most resolution options, including payment plans, CD-410 settlements, and penalty relief. The DRA may estimate your tax and issue assessments higher than what you actually owe. If the DRA has not yet contacted you, the Voluntary Disclosure Program (Form Rev 2910) may allow you to come forward with a limited look-back period and reduced penalty exposure.
What is the interest rate on New Hampshire tax debt?
Interest rates on underpayments and overpayments are recomputed annually under RSA 21-J:28, II. For 2026, the underpayment rate is 9% and the overpayment rate is 6%. In 2025, the underpayment rate was 10% and the overpayment rate was 7%.
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Sources Used
These are the official government sources used for this page. Always check the current official source for the most up-to-date information.
- New Hampshire Department of Revenue Administration — Official Portal: www.revenue.nh.gov ↗
- NH DRA — Business Taxes (BPT & BET): www.revenue.nh.gov/taxes-glance/business-taxes ↗
- NH DRA — Taxes at a Glance: www.revenue.nh.gov/taxes-glance ↗
- NH DRA — Current Year Forms and Instructions: www.revenue.nh.gov/resource-center/current-year-forms-and-instructions ↗
- NH DRA — Transparency (Revenue Data): www.revenue.nh.gov/transparency ↗
- New Hampshire General Court — RSA Chapter 77-A — Business Profits Tax: www.gencourt.state.nh.us/rsa/html/V/77-A/77-A-mrg.htm ↗
- New Hampshire General Court — RSA Chapter 77-E — Business Enterprise Tax: www.gencourt.state.nh.us/rsa/html/V/77-E/77-E-mrg.htm ↗
- New Hampshire General Court — RSA Chapter 78-A — Meals and Rooms Tax: www.gencourt.state.nh.us/rsa/html/V/78-A/78-A-mrg.htm ↗
- New Hampshire General Court — RSA Chapter 80 — Collection of Taxes (Liens): www.gencourt.state.nh.us/rsa/html/V/80/80-mrg.htm ↗
- New Hampshire General Court — RSA 480:1 — Homestead Exemption: www.gencourt.state.nh.us/rsa/html/l/480/480-1.htm ↗
- New Hampshire General Court — RSA 511:2 — Exemptions from Attachment: www.gencourt.state.nh.us/rsa/html/lii/511/511-2.htm ↗
- New Hampshire General Court — RSA 21-J:28 — Interest Rate Computation: www.gencourt.state.nh.us/rsa/html/i/21-j/21-j-28.htm ↗
- New Hampshire Board of Tax and Land Appeals — Official Portal: www.btla.nh.gov ↗
Disclaimer: This page provides general information about New Hampshire state tax collection procedures and is not legal advice. Tax laws and agency procedures change — New Hampshire's Interest and Dividends Tax was fully repealed effective January 1, 2025, and the homestead exemption increased substantially effective January 1, 2026. Always consult the official New Hampshire Department of Revenue Administration website or a qualified tax professional for advice specific to your situation. No guarantee of any particular outcome is expressed or implied. Approval for payment plans, settlements, and penalty relief requests is discretionary.