Filing Your 2021 State Income Taxes in New Hampshire

Filing Your 2021 State Income Taxes in New Hampshire
••• Zenobillis

If you are preparing to file an income tax return in New Hampshire, you'll want to know what forms you need, where and how to file them and how much you can expect to be taxed. New Hampshire is virtually free of personal income tax, only taxing interest and dividend income.

Who Must File New Hampshire Income Taxes?

Residents of New Hampshire are not required to file a New Hampshire income tax return on their W-2 wages. The only income taxed by New Hampshire is interest and dividend income.

A single individual who was a resident or inhabitant of New Hampshire for any portion of the tax year must file an interest and dividends tax return if their gross income resulting from a combination of interest and dividends exceeded ​$2,400.​ For joint filers, the filing threshold is ​$4,800​.

Taxpayers whose tax liability will exceed ​$500​ are required by the state of New Hampshire to submit quarterly estimated tax payments for the next tax year.

New Hampshire defines a full-year resident as someone intending to establish residency that is not transitory in nature. Criteria that define residency are available in N.H. Code Admin. R. Rev 902.01.

Part-year residents will be liable for the portion of income earned while residing in New Hampshire. Their total taxable income will be prorated for the number of days of New Hampshire residency. The same income thresholds then determine a part-year resident's requirement to file.

Exemptions may also apply, depending on age or disability.

What Are the Forms to Use?

Full-year and part-year residents of New Hampshire who must file an interest and dividends tax return use New Hampshire Form DP-10. The New Hampshire Department of Revenue Administration (NHDRA) publishes DP-10 instructions and a checklist on their website.

If your annual tax due will exceed ​$500​, you must submit quarterly tax payments using Form DP-10-ES.

Additional forms related to the interest and dividends tax are available in fillable PDF or printable versions on the NHDRA website.

What Is the Tax Rate in New Hampshire?

The New Hampshire tax on income and dividends is ​5 percent​ for 2021. Recently passed legislation will phase out this by 2026. Beginning in tax year 2023, the I&D tax will decrease by ​one percent​ each year until it is fully repealed, starting December 31, 2026.

The quick checklist on the revenue department website details which sources of income are taxable and non-taxable in New Hampshire.

What Are the Filing Deadline and Extension Process?

The interest and dividends tax return is due on the 15th day of the fourth month following the end of the taxable period. If that due date falls on a state holiday, the deadline is extended to the following business day. Calendar year filers must submit their return by ​April 18, 2022.

The New Hampshire Department of Revenue Administration offers a seven-month extension of time to file the interest and dividends tax return. Taxpayers file for the extension with Form DP-59-A and mail it to NH DRA, PO Box 1265, Concord, NH 03302-1265.

The full I&D tax payment must be paid by the original due date; there is no extension to pay. If the full payment is not received by the due date, penalties and interest will apply.

What Are the Penalties for Late Filing and Underpayment of Taxes?

The late tax filing penalty in New Hampshire is ​5 percent​ per month up to a maximum of ​25 percent​ of the total unpaid tax.

If a taxpayer's estimated tax payments amount to an underpayment of greater than ​10 percent​ or a total of ​$5,000​ for a taxable period, a penalty of an amount equal to ​25 percent​ of the amount of underpayment will be assessed.

If you fail to file an interest and dividends tax return, you will be subject to a penalty of ​5 percent​ monthly up to ​25 percent​ of the total unpaid balance.

Conversely, if you have overpaid through your estimated tax payments throughout the year, you may request a refund or credit on your overpayments.

Where Do I Mail/E-file My New Hampshire Return?

You can submit your New Hampshire I&D tax return through NHDRA Granite Tax Connect (GTC). Additional details and instructions for using the online system are available on the GTC help page on www.revenue.nh.gov.

Paper tax forms cannot be faxed or emailed but can be mailed to NH DRA, PO Box 637, Concord, NH 03302-0637.

How Do I Pay Taxes Due?

You can make estimated interest and dividends tax payments through Granite Tax Connect (GTC) by quickly paying as a guest or setting up a GTC account. Having an account allows you to access more site features, including saving your payment preferences.

Paper checks can be made payable to the State of New Hampshire and mailed to NH DRA, PO Box 1265, Concord, NH 03302-1265. You may enclose a check with your paper return, but do not staple or tape it to the form.

If you need to pay taxes due with your annual tax return, you may pay by the methods listed above. However, the mailing address for paper checks is different: NH DRA, PO Box 637, Concord, NH 03302-0637.

If you are expecting a refund for an overpayment of estimated taxes, you may request one through Granite Tax Connect or Form DP-10. There is a line on the form for you to indicate an overpayment. After validating that a payment is due to you, the New Hampshire Department of Revenue Administration will mail you a check in approximately 90 days.

Payment plans may also be requested through Granite Tax Connect. For a quicker response from the Collections Division, NHDRA recommends having a registered GTC account rather than submitting from a guest account.

Where Can I Check My New Hampshire Refund Status?

If you are expecting a tax refund or tax credit for an overpayment of quarterly taxes, or if you have any questions about the New Hampshire interest and dividends tax, you may contact Taxpayer Services at (603) 230-5920 or write to NH DRA at PO Box 637, Concord, NH 03302-0637.

What About New Hampshire Taxes if You're Self-employed?

New Hampshire does not collect income tax, so you will pay the federal self-employment tax by filing Schedule SE when you file your federal income tax return with the Internal Revenue Service (IRS). Depending on your business structure, you may be subject to business taxes in New Hampshire, so check the business pages on the New Hampshire Department of Revenue Administration website.

What About New Hampshire Taxes if You're a Business?

Businesses in New Hampshire pay a ​0.6 percent​ Business Enterprise Tax (BET) on the enterprise value tax base. Companies with gross profits ​over $50,000​ pay a Business Profits Tax (BPT) of ​7.7 percent​ on income resulting from business transacted in the State of New Hampshire. The state requires quarterly estimated payments for any business tax liability greater than $200.

Rates and dates in this article are correct as of publication. But check for any changes with the New Hampshire Department of Revenue Administration before you file.