The entire "an S corp saves you state tax" premise is FALSE in New Hampshire, and selling it here is the costly mistake. New Hampshire ignores S status and taxes the business itself at 7.5% BPT and 0.55% BET, while charging no personal income tax on the wages or distributions the owner takes out. Worse, the BET base is built on compensation paid, so the very act of putting yourself on W-2 payroll to support an S election increases the New Hampshire enterprise tax base — the S-corp salary strategy actively costs money at the state level. The only real benefit of the federal S election for a New Hampshire owner is federal self-employment tax savings; any state-tax savings claim should be removed for NH.
Not recognized for entity tax
S-corp election in New Hampshire
In short
Business Profits Tax at 7.5% of taxable business profits and Business Enterprise Tax at 0.55% of the enterprise value tax base; BET paid is creditable against BPT.
Does New Hampshire recognize the federal S election?
New Hampshire does NOT recognize S-corporation status. It treats a subchapter S corporation as if it were a C corporation and taxes it at the entity level under the Business Profits Tax and Business Enterprise Tax. All S corporations must complete Form DP-120, Computation of "S" Corporation Gross Business Profits, to convert federal 1120-S figures into New Hampshire gross business profits. Because New Hampshire also has no personal income tax at all — the Interest and Dividends Tax was repealed for tax periods beginning on or after January 1, 2025 — there is no shareholder-level state tax for the S election to shift income into. The election therefore produces zero New Hampshire tax benefit.
Tax the entity still owes
BUSINESS PROFITS TAX (RSA 77-A:2): 7.5% for all taxable periods ending on or after December 31, 2023 (down from 7.6% for periods ending on or after December 31, 2022 and 7.7% for periods ending on or after December 31, 2019). Filing threshold (RSA 77-A:6): gross business income above $109,000 for taxable periods beginning on or after January 1, 2025; the statutory base figure is $92,000, adjusted biennially to the nearest $1,000 by the two-year percentage change in the CPI for All Urban Consumers, Northeast Region, using the June index of the year before the tax year begins. BUSINESS ENTERPRISE TAX (RSA 77-E:2): 0.55% of the taxable enterprise value tax base for all taxable periods ending on or after December 31, 2022 (down from 0.6%). Filing threshold (RSA 77-E:5): gross business receipts above $298,000 OR an enterprise value tax base above $298,000; statutory base figures are $250,000, adjusted biennially on the same CPI mechanism. BET actually paid is allowed as a credit against BPT. DUE DATE: RSA 77-A:6 and RSA 77-E:5 set returns for partnerships at the 15th day of the 3rd month, exempt organizations at the 15th day of the 5th month, and ALL OTHER organizations — which includes a corporation, and therefore an S corporation — at the 15th day of the 4th month after year end, i.e. April 15 for a calendar-year S corp. A declaration of estimated tax is required for the following period unless estimated tax is under $260.
Registering for payroll
There is NO New Hampshire income tax withholding account to open — the state does not tax wages and has no withholding regime. The one mandatory registration is with New Hampshire Employment Security for unemployment insurance: any business providing employment in New Hampshire must file an Employer Status Report within 30 days, available at nhes.nh.gov, and then file quarterly tax and wage reports for every calendar quarter in which it provides employment. New employers start at a 2.7% unemployment tax rate on the first $14,000 of annual wages paid to each employee, adjusted after the first year based on experience rating. Unemployment tax is paid entirely by the employer and is not deducted from employee pay.
Annual filings
Form NH-1120 (Business Profits Tax return, since an S corp files as a corporation), the BET return, Form BT-SUMMARY (Business Tax Summary), and Form DP-120 (Computation of "S" Corporation Gross Business Profits) — all due the 15th day of the 4th month after year end, i.e. April 15 for calendar-year filers. Quarterly estimated business tax payments unless estimated tax is under $260. Quarterly unemployment tax and wage reports to NH Employment Security. New Hampshire Secretary of State annual report — due April 1, $100, with a $50 late fee for reports and fees received after April 1; filed online through the QuickStart dashboard.
Pass-through entity tax
New Hampshire has no pass-through entity tax and the concept is inapplicable. A PTET is a workaround that converts an owner's non-deductible state PERSONAL income tax into an entity-level deduction; New Hampshire has no personal income tax to work around. The Interest and Dividends Tax — the state's last remaining individual income tax, imposed at 3% on interest and dividends above $2,400 single / $4,800 joint — was repealed by 2023 House Bill 2 effective for tax periods beginning on or after January 1, 2025 (the repeal was accelerated from its original 2026 date). New Hampshire has never taxed W-2 wages. Note the mirror image of the usual analysis: because BPT/BET are imposed on the ENTITY, New Hampshire is one of the few states where operating as a pass-through gives you no relief at all.
The mistake owners make most often in New Hampshire
Filing your federal Form 2553
Businesses operating in New Hampshire send Form 2553 to the IRS Kansas City service center — fax 855-887-7734. Full address and filing checklist for New Hampshire.
Frequently asked questions
Does New Hampshire require a separate S-corporation election?
No. New Hampshire does not require a separate state election. New Hampshire does NOT recognize S-corporation status. It treats a subchapter S corporation as if it were a C corporation and taxes it at the entity level under the Business Profits Tax and Business Enterprise Tax.
What tax does an S corporation pay in New Hampshire?
Business Profits Tax at 7.5% of taxable business profits and Business Enterprise Tax at 0.55% of the enterprise value tax base; BET paid is creditable against BPT.
Where do I file Form 2553 from New Hampshire?
With the IRS Kansas City service center. Fax 855-887-7734, or mail to Department of the Treasury, Internal Revenue Service, Kansas City, MO 64999.
What is the most common S-corp mistake in New Hampshire?
The entire "an S corp saves you state tax" premise is FALSE in New Hampshire, and selling it here is the costly mistake. New Hampshire ignores S status and taxes the business itself at 7.5% BPT and 0.55% BET, while charging no personal income tax on the wages or distributions the owner takes out. Worse, the BET base is built on compensation paid, so the very act of putting yourself on W-2 payroll to support an S election increases the New Hampshire enterprise tax base — the S-corp salary strategy actively costs money at the state level. The only real benefit of the federal S election for a New Hampshire owner is federal self-employment tax savings; any state-tax savings claim should be removed for NH.
Compare with other states: New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio.
Sources
- https://gc.nh.gov/rsa/html/V/77-A/77-A-2.htm
- https://gc.nh.gov/rsa/html/V/77-E/77-E-2.htm
- https://gc.nh.gov/rsa/html/V/77-A/77-A-6.htm
- https://gc.nh.gov/rsa/html/V/77-E/77-E-5.htm
- https://www.revenue.nh.gov/news-and-media/business-enterprise-tax-and-business-profits-tax-filing-threshold-adjustment
- https://www.revenue.nh.gov/sites/g/files/ehbemt736/files/documents/2024-004-technical-information-release.pdf
File your Form 2553 correctly
Scorply completes your federal election and includes a New Hampshire guide in your packet, so you know exactly what else you owe here.
Start my Form 2553Some details here are less firmly sourced
New Hampshire publishes some of this information in places our checks could not reach directly, so a few of the finer details below — filing fees, exact due dates — are drawn from secondary sources. The recognition rule and the entity-level tax are solid. Confirm the specifics with the state before you rely on a date or a dollar figure.
Researched from official New Hampshire sources and verified July 30, 2026. State tax rules change. This is general information, not tax advice — confirm with the state or a CPA before you rely on it.