New Hampshire 1099 Tax Calculator

New Hampshire doesn't tax wages, but it taxes business income, a sole proprietor's included. A Business Profits Tax return is required when gross business income, meaning receipts before expenses, exceeds $109,000 (for tax periods beginning on or after January 1, 2025). The tax is 7.5% of taxable business profits: for a freelancer, net profit minus a deduction for reasonable compensation for your own work. Up to $75,000 needs no records to show it's reasonable; more is allowed if it's reasonable under federal tax rules (IRC § 162) and you keep records. This estimate caps the deduction at your net profit.

The Business Enterprise Tax is 0.55% of the compensation, interest and dividends a business pays. This estimate uses net earnings from self-employment (Schedule SE: 92.35% of net profit) as the enterprise tax base (RSA 77-E:1, V(c)), whatever deduction you take for the Business Profits Tax. A return is required when gross receipts or that tax base exceed $298,000. The Business Enterprise Tax is credited against the Business Profits Tax, and credit left over carries forward for up to 10 tax periods.

For example, $150,000 of gross income and $100,000 of profit leave $25,000 of taxable business profits after the $75,000 deduction, and $1,875.00 of Business Profits Tax, with no Business Enterprise Tax return required. New Hampshire requires estimates of its business taxes, 25% of each tax due April 15, June 15, September 15 and December 15, once the Business Profits Tax after the credit is over $200 or the Business Enterprise Tax is $260 or more (a date on a weekend or holiday moves to the next business day). Both filing thresholds are adjusted every two years. The calculator assumes taxable income is the same for New Hampshire as for the IRS and a business taxable only in New Hampshire; one also taxable in another state apportions its income. The comparison tables below use profit alone, so they leave these taxes out.

The same $100,000 single freelancer in New Hampshire and nearby states:

You generally owe state income tax where you live and work, not where your clients are.

Every state's figure for one example freelancer is in the 1099 tax by state table, which you can sort and download.

Selling a rental property in New Hampshire? The New Hampshire rental property capital gains tax calculator works out the federal and state tax on the sale, depreciation recapture included.

New Hampshire is one of 9 states with no personal income tax. What the closest of them still require:

• Florida: Local business taxes in Florida.
• Nevada: Nevada's business license and Commerce Tax.
• South Dakota: Sales tax on services in South Dakota.
• Tennessee: Tennessee's business tax.

With no New Hampshire income tax, your federal quarterly estimated payments go to the IRS on Form 1040-ES, due April 15, June 15 and September 15, 2026, and January 15, 2027. New Hampshire also requires estimates of its business taxes, 25% of each tax due April 15, June 15, September 15 and December 15, once the Business Profits Tax after the credit is over $200 or the Business Enterprise Tax is $260 or more. The "Quarterly payments" view above shows both schedules, and the national page explains the federal safe-harbor rules that avoid an underpayment penalty.

A New Hampshire freelancer's 1099 tax bill is mostly federal: on $100,000 of net profit, self-employment tax is $14,129.55 and federal income tax $8,235.00, and New Hampshire adds no income tax on earned income. All in, that is $22,364.55, or 22.4% of profit.

Set aside about that share of every payment, pay the IRS each quarter, and rerun the New Hampshire 1099 tax calculator when your income changes.