New Hampshire Business Taxes: BET and BPT Explained
New Hampshire imposes two distinct business-level taxes that together form the foundation of the state's commercial revenue framework: the Business Enterprise Tax (BET) and the Business Profits Tax (BPT). These taxes apply to enterprises operating within the state and are administered by the New Hampshire Department of Revenue Administration. Understanding the structural differences between these two taxes — including their bases, rates, thresholds, and interaction — is essential for any entity conducting business in New Hampshire.
Definition and Scope
Business Enterprise Tax (BET) is levied on the taxable enterprise value base of a business enterprise operating in New Hampshire. The enterprise value base is defined as the sum of all compensation paid or accrued, interest paid or accrued, and dividends paid by the enterprise — regardless of whether the business shows a profit. This structure makes the BET effectively a tax on the factor inputs of production rather than on net income (NH RSA 77-E).
The BET rate is set at 0.6% of the enterprise value base, as established under RSA 77-E:2 (NH Department of Revenue Administration, BET overview).
Business Profits Tax (BPT) is levied on the taxable business profits of business organizations with gross receipts exceeding $50,000. The BPT functions more like a conventional income tax, applied to net income derived from business activity in New Hampshire. The BPT rate is 7.5%, as set under RSA 77-A (NH Department of Revenue Administration, BPT overview).
Scope and coverage: Both taxes apply to entities conducting business activity in New Hampshire, including corporations, partnerships, limited liability companies, sole proprietorships, and trusts engaged in business. Federal and state governmental entities are excluded. Entities with gross receipts of $92,000 or less are not required to file the BET (NH RSA 77-E:5).
Scope boundary: This page addresses only New Hampshire state-level business taxes as administered by the NH Department of Revenue Administration. Federal income taxes, federal self-employment taxes, and local property tax obligations — including those described in New Hampshire Property Tax — fall outside this scope. Multistate apportionment rules under the BPT may intersect with other states' tax regimes, but those states' rules are not covered here.
How It Works
BET calculation:
- Identify total compensation paid or accrued to employees and officers during the tax period.
- Add total interest paid or accrued on all indebtedness.
- Add total dividends paid.
- Sum these three components to determine the enterprise value base.
- Multiply the enterprise value base by 0.6% to determine BET liability.
BPT calculation:
- Determine federal taxable income as reported on the applicable federal return.
- Apply New Hampshire-specific additions and subtractions as specified under RSA 77-A.
- Apply the three-factor apportionment formula (property, payroll, and sales) if the entity operates in multiple states.
- Multiply the resulting New Hampshire taxable business profits by 7.5%.
Tax credit interaction: A credit is available against BPT liability for BET paid. Specifically, the BET paid can offset BPT owed, preventing double taxation on the same economic activity. If the BET credit exceeds the BPT liability in a given year, the excess credit may be carried forward for up to 10 years (NH RSA 77-A:5).
Both taxes are filed annually. Combined returns are submitted to the New Hampshire Department of Revenue Administration using Form BT-Summary. Estimated payments are required quarterly for entities whose annual tax liability exceeds $200.
Common Scenarios
Profitable corporation with significant payroll: A New Hampshire-based corporation with $2 million in employee compensation, $150,000 in interest, and $100,000 in dividends has an enterprise value base of $2.25 million. BET liability equals $13,500. If BPT liability on net profits is $30,000, the BET credit reduces that to $16,500 net BPT owed.
Loss-year operation: An entity reporting a net operating loss has zero BPT liability but may still owe BET if compensation, interest, and dividends together exceed the $92,000 gross receipts threshold. This is a critical structural distinction: the BET is not income-contingent.
Single-member LLC with minimal payroll: A sole-member LLC below the $92,000 gross receipts threshold files neither the BET nor the BPT. Once gross receipts exceed that threshold, BET filing is required regardless of profitability.
Multistate business: An entity with activity in New Hampshire and Massachusetts apportions its BPT base using New Hampshire's three-factor formula. Only the New Hampshire-attributed share of profits is subject to the 7.5% BPT rate. The BET applies to the full New Hampshire portion of compensation, interest, and dividends — not the multistate total.
Decision Boundaries
| Factor | BET | BPT |
|---|---|---|
| Tax base | Enterprise value (compensation + interest + dividends) | Net business profits |
| Rate | 0.6% | 7.5% |
| Filing threshold | $92,000 gross receipts | $50,000 gross receipts |
| Applies in loss year? | Yes, if threshold is met | No (no profits = no BPT) |
| Credit available? | Credit applies against BPT | Receives BET credit |
| Carryforward | N/A | BET credit carried forward up to 10 years |
The determinative boundary between BET and BPT exposure lies in whether an entity generates net profit. Entities that compensate employees or carry debt obligations may owe BET even in years with no taxable profit. Conversely, a capital-light entity with high net margins but low compensation and debt may face minimal BET liability while bearing substantial BPT exposure.
For broader context on how these taxes fit within New Hampshire's fiscal structure, the New Hampshire Taxation System overview describes the full scope of state revenue instruments, including the absence of a general personal income tax or sales tax — a structural feature that places the BET and BPT among the state's primary commercial revenue mechanisms.
The New Hampshire state government reference index provides access to agency-level information across all departments, including the Department of Revenue Administration, which publishes annual instructions, rate notices, and administrative rules governing both taxes.
References
- New Hampshire Department of Revenue Administration — Business Enterprise Tax
- New Hampshire Department of Revenue Administration — Business Profits Tax
- NH RSA 77-E — Business Enterprise Tax (General Court)
- NH RSA 77-A — Business Profits Tax (General Court)
- New Hampshire General Court — RSA Title V (Taxation)