New Hampshire — Personal Income Tax

New Hampshire's only personal income tax—the Interest and Dividends Tax imposed under RSA Chapter 77—was fully repealed for taxable periods beginning on or after January 1, 2025. The state now imposes no tax on individual income of any kind, including wages, salaries, self-employment income, interest, or dividends.

Prior to repeal, the tax applied only to interest and dividend income received by New Hampshire residents, not to wages or other compensation. Individuals were required to file if their gross interest and dividend income exceeded $2,400 annually ($4,800 for joint filers). The tax rate was phased down from 5% to 4% for periods ending on or after December 31, 2023, then to 3% for periods ending on or after December 31, 2024, before full repeal on January 1, 2025.

No 2025 Interest and Dividends Tax returns are required. Taxpayers who made estimated payments for 2025 in error may request a refund. Returns and payments for tax years 2024 and earlier remain due by the applicable statutory deadlines; the repeal does not provide amnesty for pre-repeal years.

Source: NH DRA – Repeal of NH Interest and Dividends Tax Now in Effect Source: RSA Chapter 77 – Taxation of Incomes (repealed)

Taxpayers required to file an Interest and Dividends Tax return for 2024 or earlier years must do so by the statutory due date. Fiscal year taxpayers file on the fifteenth day of the fourth month following the end of their fiscal year; for calendar year 2024, the due date is April 15, 2025. The Commissioner may extend the filing deadline for good cause, but taxpayers remain liable for interest and late payment charges. Taxable periods beginning on or before December 31, 2024, remain subject to audit and collection; the repeal does not provide amnesty for pre-repeal years.

Source: RSA 77:18-a – Fiscal Year Taxpayers' Returns Source: RSA 77:18-b – Extension of Time for Returns Source: NH DRA – Repeal of NH Interest and Dividends Tax Now in Effect

The Interest and Dividends Tax rate was phased down over three years before full repeal. For taxable periods ending before December 31, 2023, the rate was 5%. For taxable periods ending on or after December 31, 2023, the rate was reduced to 4%. For taxable periods ending on or after December 31, 2024, the rate was further reduced to 3%. These rates remain applicable to returns and audits for tax years 2023 and 2024, even though the tax is fully repealed for periods beginning on or after January 1, 2025.

Source: RSA 77:1 (repealed) Source: NH DRA — Interest & Dividends Tax FAQs

For taxable periods beginning on or before December 31, 2024, New Hampshire residents and fiduciaries were required to file an Interest and Dividends Tax return if their gross interest and dividend income from all sources exceeded $2,400 annually for individual filers or $4,800 for married couples filing jointly. Partnerships, limited liability companies, and associations with non-transferable shares were also required to file if gross interest and dividend income exceeded $2,400 during the taxable year. Part-year residents were entitled to the full $2,400 or $4,800 exemption and were required to file if their gross income for the entire year exceeded the applicable threshold.

Source: RSA 77:3 (repealed) Source: NH DRA — Interest & Dividends Tax FAQs

New Hampshire enacted RSA Chapter 78-F in June 2022 to declare the state's position that compensation earned by New Hampshire residents for services entirely performed within New Hampshire should not be subject to personal income taxation by any other state. The statute states it is "the sovereign interest of the state of New Hampshire" that wage, salary, or other employee compensation earned by NH residents for work physically performed in NH "shall not be subject to personal income taxation in any other state."

RSA 78-F:1 is a policy declaration, not an operative prohibition that creates a private right of action or directly limits another state's taxing authority. The statute does not empower New Hampshire residents to unilaterally refuse to file nonresident returns in other states, nor does it invalidate convenience-of-the-employer rules adopted by states such as New York, Massachusetts, Connecticut, Pennsylvania, or Delaware.

Practical effect. New Hampshire residents who work remotely for employers located in states with convenience-of-the-employer rules—or who perform any services physically in those states—remain subject to nonresident income tax filing obligations under those states' laws. Massachusetts, for example, continued to assert taxing jurisdiction over nonresident telecommuters during the COVID-19 pandemic under an emergency regulation that treated work-from-home days as Massachusetts workdays if the employer's office was in Massachusetts. New Hampshire challenged that regulation in New Hampshire v. Massachusetts, No. 22O154, but the U.S. Supreme Court denied New Hampshire's motion for leave to file a complaint in June 2021, before RSA 78-F was enacted.

The statute remains on the books as a legislative statement of New Hampshire's policy interest. It does not relieve NH residents of compliance obligations in other states, and practitioners should analyze each nonresident filing obligation under the law of the state asserting jurisdiction.

Effective date. RSA Chapter 78-F became effective June 17, 2022, the date Governor Sununu signed HB 1097 into law.

Source: HB 1097 (Final Version), 2022 Session, Chapter 185

New Hampshire imposes no personal income tax on any form of individual income, including wages, salaries, self-employment income, interest, dividends, capital gains, or retirement distributions. The state's only personal income tax—the Interest and Dividends Tax under RSA Chapter 77—was fully repealed for taxable periods beginning on or after January 1, 2025. New Hampshire has never imposed a tax on wage or salary income.

Nonresident filing obligations in other states are not affected by New Hampshire's tax structure. A New Hampshire resident who performs services in another state, or who has source income from another state (such as rental income, partnership distributions, or S corporation income from a business located in that state), remains subject to nonresident income tax filing obligations under that state's laws.

New Hampshire's lack of a personal income tax does not create an exemption from or defense to another state's assertion of taxing jurisdiction over income sourced to that state. New Hampshire residents are commonly required to file nonresident income tax returns in:

• Massachusetts — if the NH resident performs any services physically in Massachusetts, or if the NH resident works remotely for a Massachusetts employer under Massachusetts' convenience-of-the-employer rule (which treats remote work days as Massachusetts workdays if the employer's office is in Massachusetts and the remote work arrangement is for the employee's convenience rather than the employer's necessity).

• Maine — if the NH resident performs services in Maine or has Maine-source income. Maine does not impose a convenience-of-the-employer rule, so remote work performed entirely in New Hampshire for a Maine employer is generally not subject to Maine income tax.

• Vermont — if the NH resident performs services in Vermont or has Vermont-source income. Vermont does not impose a convenience-of-the-employer rule.

New Hampshire has no income tax reciprocity agreements with any state, because reciprocity agreements are mutual waivers of nonresident income tax—a tax New Hampshire does not impose. The absence of reciprocity means that a New Hampshire resident working in Massachusetts, for example, owes Massachusetts nonresident income tax on wages earned in (or attributed to) Massachusetts, and receives no offsetting credit from New Hampshire (because New Hampshire imposes no tax from which a credit could be claimed).

RSA Chapter 78-F and its limits. In June 2022, New Hampshire enacted RSA Chapter 78-F, a statutory declaration that compensation earned by NH residents for services performed entirely within New Hampshire should not be subject to income taxation by any other state. The statute is a policy statement, not an operative prohibition. It does not empower NH residents to refuse to file nonresident returns in states that assert jurisdiction under convenience-of-the-employer or other rules, nor does it invalidate those states' laws. New Hampshire challenged Massachusetts' COVID-19 emergency regulation treating remote work days as Massachusetts workdays in New Hampshire v. Massachusetts, No. 22O154, but the U.S. Supreme Court denied New Hampshire's motion for leave to file a complaint in June 2021, before RSA 78-F was enacted.

Practitioners advising New Hampshire residents with multistate income should analyze each state's sourcing rules, nexus thresholds, and convenience-of-the-employer doctrines separately. The fact that New Hampshire imposes no income tax is not a shield against another state's nonresident filing requirement.

Source: NH DRA – Repeal of NH Interest and Dividends Tax Now in Effect Source: HB 1097 (Final Version), 2022 Session, Chapter 185 – RSA 78-F

For tax years 2023 and 2024—the final years before repeal of New Hampshire’s Interest and Dividends (I&D) Tax—New Hampshire provided additional exemptions for elderly, blind, and certain disabled residents, augmenting the standard I&D income exemption thresholds.

Eligibility and exemption amounts:

• Every individual taxpayer was entitled to a base exemption of $2,400 in interest and dividend income (or $4,800 for married persons filing jointly), per RSA 77:5, I.
• Taxpayers age 65 or older on the last day of the taxable period qualified for an additional $1,200 exemption. In the case of joint filers, each spouse age 65 or older could claim a separate $1,200 exemption (RSA 77:5, II).
• Taxpayers who were blind could claim an additional $1,200 exemption per blind spouse (RSA 77:5, III).
• Taxpayers under age 65, unable to work due to disability, could claim an additional $1,200 exemption (RSA 77:5, IV). Joint filers could claim this exemption for each spouse meeting the disability criteria.

Exemptions were cumulative. That is, a qualifying taxpayer could claim more than one exemption (e.g., both age 65+ and blind). For example, a taxpayer age 68 and blind could exclude $2,400 (base) + $1,200 (elderly) + $1,200 (blind) = $4,800 before any I&D tax was owed. Spouses in a joint return aggregated their individual exemptions.

Income thresholds and practical effect: For 2023 and 2024, a single taxpayer could have up to $2,400 in interest and dividends (plus eligible extra exemptions) exempt from tax. A jointly-filing couple, both age 65 or older and both blind, could potentially exclude up to $4,800 (base joint) + $2,400 (elderly, $1,200 each) + $2,400 (blind, $1,200 each) = $9,600 from the I&D tax base.

No adjustments for inflation: The exemption thresholds did not change during 2023 or 2024, remaining constant until the tax’s repeal effective January 1, 2025. These exemption rules applied equally in both years.

Statutory basis and confirmation: All eligibility requirements and thresholds are governed by RSA 77:5. The New Hampshire Department of Revenue Administration’s official FAQ confirmed these amounts for 2023 and 2024.

Source: RSA 77:5 (pre-repeal) Source: NH DRA – I&D Tax FAQ

For tax years 2024 and earlier—prior to repeal of the New Hampshire Interest and Dividends (I&D) Tax—whether a pass-through entity (such as a partnership, LLC, or association) was taxed directly on its interest and dividend income, or whether the recipient owners were taxed on amounts distributed, depended on the classification of ownership interests as transferable or non-transferable under New Hampshire law.

Non-transferable shares:

• If the partnership, LLC, or association was organized with non-transferable shares (ownership was not represented by shares that could be transferred to others), the entity itself was liable for the I&D Tax on its gross interest and dividend income. The entity was treated functionally like a trust for this purpose, with the tax imposed at the entity—not owner—level. Beneficiaries or members did not owe I&D Tax on distributions received from such income, as the tax was already imposed on the entity.

Transferable shares:

• If the entity was organized with transferable shares (such that a member's interest could be transferred to another person), the I&D Tax was not imposed at the entity level. Instead, the recipients (shareholders, members, or partners) were liable for I&D Tax on distributions of interest and dividend income received from the entity, with the tax imposed to the extent the distribution was sourced to interest or dividends (not on distributions of other types of entity income).

Key regulation:

• This distinction is formalized in N.H. Admin. Code Rev 902.07. The rule was in effect throughout the final years of the I&D Tax and applies to 2024 and earlier tax years. The NH Department of Revenue Administration’s published guidance confirms the practical application of this distinction.

• Note: Special rules and exceptions may apply for trusts, estates, or investment vehicles with hybrid structures. The above analysis does not cover S corporations (which were generally not subject to the I&D Tax regime).

Source: N.H. Admin. Code Rev 902.07 Source: NH DRA – I&D Tax FAQ

Taxpayers who made estimated payments for New Hampshire Interest & Dividends (I&D) Tax for the 2025 tax year—even though the tax was fully repealed for taxable periods beginning January 1, 2025—can request a refund by submitting a written request to the Department of Revenue Administration (DRA).

Process:

• According to the New Hampshire DRA's public guidance dated January 23, 2025, "taxpayers who have made estimated tax payments in error should request a refund of the same in writing."
• As of this guidance, the DRA has not published a formal administrative rule or specific form for this situation; the refund request must be made in writing, and the guidance does not reference use of email or online submission—only a written refund request. (Practitioners should rely on the DRA's official communication channels for mailing written requests; verify the current address on the DRA website at the time of submission.)
• The guidance does not specify the required content of the request. Including identifying information, the amount and date(s) of payment(s), and a statement that the payment(s) relate to I&D tax year 2025 is a reasonable best practice but is not required by the cited authority.

Statutory context:

• The repealing act for RSA Chapter 77 (I&D Tax), effective January 1, 2025, does not create a formal administrative process for refunding post-repeal payments. The process as described is authorized and communicated solely through the DRA's official 2025 guidance.

Source: NH DRA – Repeal of NH Interest and Dividends Tax Now in Effect (Jan. 23, 2025)

As of June 16, 2026, neither Maine nor Vermont imposes a “convenience-of-the-employer” sourcing rule for nonresident income.

Maine — Maine sources nonresident wages based strictly on where the work is performed. Under Maine Rule 806 (18-125 C.M.R. ch. 806), Maine-source compensation is income earned when personal services are performed in Maine; if exact tracking is unavailable, income is apportioned based on the ratio of days worked in Maine to total working days. Maine does not apply employer-home-state sourcing under a convenience test—only physical presence or apportionment applies.

Vermont — Vermont’s sourcing rules for nonresidents are similarly literal: Vermont income for nonresidents includes only wages actually earned from work performed within Vermont (32 V.S.A. § 5823(b)(3)). No statute, regulation, or published guidance establishes a convenience-of-the-employer rule in Vermont as of the effective date.

Implication for New Hampshire Residents Working Remotely If a New Hampshire resident performs remote work for an employer located in Maine or Vermont from New Hampshire, such wages are not subject to these states’ sourcing rules under a convenience test—there is no statutory or regulatory basis to tax them absent physical performance in those states.

Source: 18-125 C.M.R. ch. 806 (Maine nonresident sourcing rule) Source: 32 V.S.A. § 5823(b)(3) (Vermont nonresident wage sourcing)

Human-confirmation status: Not yet human confirmed.

Direct answer: Connecticut imposes a "convenience of the employer" sourcing rule for nonresidents, but as of 2026, applies it only to residents of states that themselves have a similar 'convenience' rule. Because New Hampshire does not have a convenience of the employer rule and does not tax wage income, Connecticut’s rule does not apply to New Hampshire residents working remotely for Connecticut employers if all work is performed outside Connecticut.

Why: By statute, Connecticut’s "convenience of the employer" rule (Conn. Gen. Stat. § 12-711(a)(12), enacted in 2019) applies to nonresidents working remotely for Connecticut employers only if their state of residence applies a similar rule—a “reciprocity” or "retaliatory" provision. This means Connecticut does not assert nonresident income tax on days worked remotely from New Hampshire for a Connecticut employer, as New Hampshire has no such rule (and imposes no tax on wage income at all; see RSA 78-F, effective through and after 2025 repeal of NH's Interest & Dividends Tax). If, however, any work is physically performed in Connecticut, those wages are Connecticut source income and taxable in Connecticut. The convenience rule affects only remote work days, not days involving Connecticut presence.

Source support: Source: Conn. Gen. Stat. § 12-711 Source: Connecticut DRS Nonresident Employee Withholding & Sourcing Guidance Source: Connecticut General Assembly OLR Research Report 2025-R-0067

Caution / review status: Not yet human confirmed. This statement reflects law and official guidance as of June 16, 2026; practitioners should review later Department of Revenue guidance for ongoing changes.

For taxable years 2024 and earlier, the New Hampshire Interest & Dividends Tax (I&D Tax) was subject to statutory interest for late payment and monetary penalties for failure to file or pay.

Interest on Late Payment ("Underpayment") New Hampshire law imposes interest on underpaid tax at the annual underpayment rate, which equals the federal underpayment rate under IRC § 6621(a)(2)—as in effect on the preceding September 1—plus 2 percentage points, according to RSA 21-J:28, II. For 2024, the NH Department of Revenue Administration set this rate at 9% per annum. Thus, for any I&D Tax payment made after the due date in 2024 or before, interest accrues at 9% annually until paid. Source: NH DRA: Interest Rates for Underpayment and Overpayment of Tax

Penalties for Late Payment or Late Filing According to the official instructions for Form DP-10 (I&D Tax return) for 2022 and 2023, failure to pay the tax when due results in a penalty equal to 10% of the unpaid tax, unless the failure is due to fraud, in which case the penalty is 50% of the amount unpaid. Failure to file a complete return on time is subject to a penalty of 5% of tax due (or $10 minimum), per month or part thereof, up to a maximum of 25% of tax due (or a $50 minimum). Source: DP-10 Instructions 2022

Substantial Understatement Penalty and Further Context A separate penalty of 25% applies for a "substantial understatement" of tax per RSA 21-J:33-a if the understatement exceeds the greater of 10% of correct tax or $5,000. Administrative Rule Rev 908.01 further describes these penalties and standards. Source: DP-10 Instructions 2022

Summary Table (Tax Years 2024 and Earlier)

• Interest on unpaid I&D Tax: 9% annually (2024)
• Failure-to-pay penalty: 10% of unpaid tax (50% if fraudulent)
• Failure-to-file penalty: 5% per month (max 25%) of tax due
• Substantial understatement penalty: 25% (where applicable)

Source: NH DRA: Interest Rates for Underpayment and Overpayment of Tax Source: DP-10 Instructions 2022

Caution / review status: Not yet human confirmed. These penalty figures are taken from the NH DRA's official taxpayer materials (DP-10 instructions) and public agency guidance, but a practitioner should verify their alignment with the latest versions of RSA 21-J:31 and RSA 21-J:33 for statutory language applicable to I&D Tax through 2024.

Direct answer: Massachusetts does not have a permanent "convenience-of-the-employer" rule for nonresident telecommuters after the expiration of its COVID-19 emergency regulation in September 2021. Wages are sourced to Massachusetts only for days actually worked physically in the state.

Why: During the COVID-19 pandemic, Massachusetts adopted emergency regulation 830 CMR 62.5A.3, which sourced wages to Massachusetts for nonresidents working remotely (outside the state) for a Massachusetts employer, treating those days as Massachusetts workdays unless the remote arrangement was for the employer's necessity. This rule was temporary and expired as of September 13, 2021, per Technical Information Release 21-15. After the expiration, Massachusetts reverted to its statutory sourcing rule under M.G.L. c. 62, § 5A. Under this statute, nonresidents are taxed only on wages earned for services performed in Massachusetts; remote work performed out of state is not Massachusetts source income. There is no current regulation or statutory provision establishing a permanent convenience-of-the-employer rule for nonresident telecommuters after September 2021, and state-issued guidance confirms this result.

The operative text of M.G.L. c. 62, § 5A provides that compensation paid to a nonresident is Massachusetts source income only to the extent that the services are performed in Massachusetts. The Department of Revenue has not issued subsequent regulations or technical guidance establishing a new convenience rule as of the date of the latest source cited below.

Source support: Source: 830 CMR 62.5A.3 (COVID-19 Emergency Regulation – Repealed) Source: Massachusetts DOR Technical Information Release 21-15 (end of COVID rule) Source: M.G.L. c. 62, § 5A (Nonresident Income Sourcing Statute)

Caution / review status: Not yet human confirmed. This section is current as of the latest cited guidance (September 2021); readers should check for later DOR developments if needed.

Direct answer: As of June 2026, Massachusetts does not enforce a "convenience-of-the-employer" rule for nonresident telecommuters. Wages are sourced to Massachusetts only for days actually worked physically in Massachusetts. The COVID-19 emergency remote work regulation (830 CMR 62.5A.3) expired in 2021 and is no longer in effect.

Why: During the COVID-19 pandemic, Massachusetts adopted temporary regulation 830 CMR 62.5A.3, which treated days worked remotely by nonresidents for Massachusetts employers as Massachusetts workdays, even if performed elsewhere. This emergency rule was explicitly tied to the state's COVID-19 emergency. The text of 830 CMR 62.5A.3 and contemporaneous Department of Revenue guidance provide that the rule ceased to apply 90 days after the Governor ended the COVID-19 state of emergency, which occurred in June 2021. The Department formally confirmed the rule's expiration in Technical Information Release (TIR) 21-15. No permanent regulation replaced the emergency rule.

Since September 2021, Massachusetts has reverted to its default statutory and regulatory sourcing rule under M.G.L. c. 62, § 5A and 830 CMR 62.5A.1. Compensation paid to nonresidents is sourced to Massachusetts only to the extent the services are physically performed within Massachusetts. Days worked remotely from outside Massachusetts for a Massachusetts employer are not Massachusetts source income unless the work is physically performed in Massachusetts.

Source support: Source: 830 CMR 62.5A.3 (COVID-19 Emergency Regulation – expired 2021) Source: Massachusetts DOR Technical Information Release 21-15 (expiration of COVID remote work rule) Source: M.G.L. c. 62, § 5A (Nonresident wage sourcing) Source: 830 CMR 62.5A.1 (General Nonresident Income Sourcing Regulation)

Caution / review status: Not yet human confirmed. This statement reflects the law and official guidance current as of June 16, 2026. Massachusetts Department of Revenue has not promulgated a new convenience-of-the-employer rule since expiration of the emergency regulation. Practitioners advising on multistate telecommuting should monitor DOR guidance for updates.

New Hampshire imposes no personal income tax, but New Hampshire residents with non-wage income (such as rental income, partnership or S corporation income) from sources in neighboring states are subject to nonresident income tax filing requirements under those states’ laws. Each neighboring state (Massachusetts, Maine, Vermont, Connecticut, and New York) has distinct filing triggers and sourcing rules for nonresidents. Statutory and regulatory support for each state is detailed below.

Massachusetts (MA): Nonresidents must file a Massachusetts income tax return (Form 1-NR/PY) if they have gross income over $8,000 or are subject to Massachusetts tax on any amount of income. Massachusetts-sourced income includes rental income derived from Massachusetts real property and a nonresident’s share of pass-through income from Massachusetts activities. The $8,000 threshold does not apply if the taxpayer is subject to tax on any Massachusetts-source income. See M.G.L. c. 62, § 5A and the MA DOR Guide for current filing instruction. Source: M.G.L. c. 62, § 5A, MA DOR: Personal Income Tax for Nonresidents

Maine (ME): Nonresidents are required to file a Maine return if they have more than $3,000 of Maine-source income or if their Maine adjusted gross income (with additions) exceeds the Maine standard deduction and personal exemption amounts. Maine-source income includes rental income from property in Maine and pass-through income apportionable to Maine. There is a statutory safe harbor: if the Maine-source income does not exceed $3,000 for the year, no filing is required even if the individual otherwise has Maine gross income. Source: Me. Rev. Stat. Ann. tit. 36 § 5142, 18-125 C.M.R. ch. 806.2

Vermont (VT): Nonresidents must file if they have Vermont adjusted gross income over $100 or Vermont gross income over $1,000, including rental income from Vermont property or pass-through allocations sourced to Vermont. No statutory safe harbor beyond these filing thresholds appears in the governing statutes. Source: 32 V.S.A. § 5823(b)

Connecticut (CT): Nonresidents are required to file Form CT-1040NR/PY if they have Connecticut-source income (including rental or pass-through entity income) and their Connecticut adjusted gross income plus Connecticut additions exceeds their personal exemption computed pursuant to Conn. Gen. Stat. § 12-701. The exemption amount is determined according to a statutory formula and is not fixed in the statute. Source: Conn. Gen. Stat. § 12-701(a)(10)

New York (NY): Nonresidents must file Form IT-203 for any year in which they have any New York-source income, including rental income from New York real property or distributive shares of pass-through income apportioned or allocated to New York. The filing requirement is triggered by receipt of any New York-source income, with no minimum threshold stated in statute. Source: N.Y. Tax Law § 601(e), NY Dept of Taxation: Nonresident Filing Requirements

Not yet human confirmed as of 2026-06-24. Statutory source links for Vermont and Connecticut were repaired following domain changes; no material content changes identified in official authorities as of this review. Practitioners should confirm specific statutory thresholds for the relevant year, as indexed amounts may change.

For taxable periods beginning on or before December 31, 2024—including those for estates, non-grantor trusts, grantor trusts, partnerships, LLCs, and associations—the obligations of New Hampshire's repealed Interest and Dividends (I&D) Tax continue to apply. Fiduciaries and qualifying entities are required to file and pay I&D Tax for pre-repeal years according to the rules in effect for those years.

Fiduciaries (trusts and estates):

• Non-grantor trusts and estates were required to file if their gross interest and dividend income from all sources exceeded $2,400 in a taxable period.
• For grantor trusts, the tax was generally imposed at the grantor level, not the fiduciary or trust entity, per attribution rules in N.H. Admin. Code Rev 902.07.
• For non-grantor trusts and estates, the fiduciary filed at the entity level. Apportionment and attribution among beneficiaries followed the detailed mechanics set out in Rev 902.07, depending on distributions and the trust instrument.

Entities (LLCs, partnerships, non-corporate associations):

• Partnerships, LLCs, and associations with non-transferable shares (i.e., member/owner interests that cannot be freely sold or transferred) were required to file I&D Tax returns if their gross interest and dividend income exceeded $2,400 during the taxable year. The tax was imposed directly at the entity level under RSA 77:3 and Rev 902.07.
• For entities with transferable shares, the I&D Tax was generally not imposed at the entity level. Instead, individual members or owners included their share of interest and dividend income on their own filings, using the $2,400 ($4,800 joint) threshold.

Filing and compliance after repeal: Although the I&D Tax is repealed for taxable periods beginning on or after January 1, 2025, all audit, collection, and statute-of-limitations rules remain in effect for pre-repeal years. Fiduciaries and entities must file, pay, and comply with DRA inquiries or audits for open tax years ending before full repeal. No special amnesty or waiver applies to fiduciaries, estates, or non-corporate entities.

Source: NH DRA – I&D Tax FAQ: Filing requirements for trusts, estates, partnerships Source: N.H. Admin. Code Rev 902.07 Source: NH DRA – Repeal of NH Interest and Dividends Tax Now in Effect

For tax years 2024 and earlier, repeal of the New Hampshire Interest and Dividends (I&D) Tax does not alter the existing statutes of limitation or administrative procedures for audit, assessment, amended returns, refunds, or appeals. The Department of Revenue Administration (DRA) continues to administer audits, assessments, and refunds for pre-repeal years under the law applicable at the time those returns were due.

Statute of limitations for assessment and audit Per RSA 21-J:29 and N.H. Admin. Code Rev 903.08, the DRA may assess additional I&D Tax within 3 years after a return is filed, or within 3 years after the statutory due date (whichever is later). This limit also applies to initiating audits or issuing assessment notices for tax years up to and including 2024. The repeal did not shorten or extend this period for open pre-repeal years.

Refunds, credits, and amended returns Pursuant to N.H. Admin. Code Rev 906.06 and RSA 21-J:28-a, taxpayers may file amended returns and claim a refund or credit for overpayment of I&D Tax no later than 3 years after the original due date of the return, or 2 years after payment (whichever is later). Overpayments for 2024 and prior years will continue to be refunded on request, provided the claim is timely under these statutes. The DRA’s official post-repeal guidance reaffirms that claims for refund for prior years will be processed normally where the statute of limitations has not expired, and any refund is first applied to unpaid liabilities for prior periods.

Appeals and administrative review Unchanged by the repeal, a taxpayer may still request a reconsideration of a proposed deficiency, denial of a refund, or DRA administrative decision within 60 days (RSA 21-J:28-b). Further appeal rights follow the general DRA review process for business and excise taxes, not altered by the I&D Tax repeal.

No retroactive effect and no amnesty The 2025 repeal did not retroactively eliminate liabilities, assessments, or taxpayer rights for open tax years or unresolved filings. Pre-repeal years (through 2024) remain fully enforceable for statutes of limitation, audit, collection, refund, and administrative review—subject to deadlines governing each stage.

Source: NH DRA – Repeal of NH Interest and Dividends Tax Now in Effect Source: RSA 21-J:29 – Limitations on Assessments Source: NH DRA – Administrative Rules Listing (Rev 900, see Rev 906.06) Source: RSA 21-J:28-b – Reconsideration and Appeal Process