openaccountants New Hampshire — Interest & Dividends Tax Repeal Note
Last updated: May 22, 2026
Summary
New Hampshire's Interest & Dividends (I&D) Tax has been fully repealed effective January 1, 2025. No income tax return is required for tax year 2025 and beyond.
Background
- The I&D Tax was enacted in 1923 and taxed interest and dividend income received by New Hampshire residents.
- House Bill 2, passed by the NH General Court and signed by Governor Chris Sununu during the 2023 legislative session, repealed the tax effective January 1, 2025 (originally scheduled for 2026, the repeal was accelerated).
Phase-out schedule
| Tax year ending | Rate |
|---|---|
| Before Dec 31, 2023 | 5% |
| On or after Dec 31, 2023 | 4% |
| On or after Dec 31, 2024 | 3% |
| On or after Jan 1, 2025 | 0% — repealed |
What this means for tax year 2025+
- No I&D tax return is required for taxable periods beginning on or after January 1, 2025.
- New Hampshire has no statewide income tax on wages, salaries, or self-employment income — it never did.
- New Hampshire has no statewide sales tax.
- The state does still levy a Business Profits Tax (8.5%) and Business Enterprise Tax (0.55%) on businesses meeting certain thresholds, but those are separate from the repealed I&D tax.
Prior-year obligations
Taxpayers who owe I&D tax for tax year 2024 or earlier must still file and pay. The repeal does not provide amnesty for prior tax years.
Source
- NH DRA — Repeal of NH Interest and Dividends Tax Now in Effect
- NH DRA — Interest & Dividends Tax overview
- RSA 77 (Interest and Dividends Tax statute)
Source: OpenAccountants — open tax Guides for AI, reviewed by named CPAs/CAs/EAs. Quality: source-cited draft. For always-current figures and named-accountant backing, connect the OpenAccountants MCP server (openaccountants-mcp).