NH Interest Dividends Note

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New Hampshire's Interest & Dividends (I&D) Tax has been fully repealed effective January 1, 2025.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• House Bill 2, passed by the NH General Court and signed by Governor Chris Sununu during the 2023 legislative session, repealed the tax effective January 1, 2025 (originally scheduled for 2026, the repeal was accelerated).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

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On or after Jan 1, 2025	0% — repealed

• 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• On or after Jan 1, 2025 — 0% — repealed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 required — No I&D tax return is required for taxable periods beginning on or after January 1, 2025.
• No statewide income tax — New Hampshire has no statewide income tax on wages, salaries, or self-employment income — it never did.
• No statewide sales tax — New Hampshire has no statewide sales tax.
• Business Profits Tax — 8.5% (Levied on businesses meeting certain thresholds, separate from the repealed I&D tax.)
• Business Enterprise Tax — 0.55% (Levied on businesses meeting certain thresholds, separate from the repealed I&D tax.)

Prior-year obligations

• Prior-year filing obligation — 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)