Consultants in New Hampshire: taxes and retirement for 2026
For independent consultants and fractional executives billing clients directly in New Hampshire. New Hampshire has no state income tax on wages or self-employment income. Here are the 2026 rules, a worked example and the official sources.
New Hampshire rules for consultants
- State income tax (2026)
- New Hampshire has no state income tax on wages or self-employment income. The Interest & Dividends Tax was repealed for tax periods beginning on or after January 1, 2025. New Hampshire does not tax wages, but its business taxes (BPT/BET) apply to proprietorships above the filing thresholds.
- New Hampshire Business Profits Tax (BPT)
- 7.5% tax on New Hampshire business profits. It applies to proprietorships, LLCs, and other business organizations with more than $109,000 in gross business income from all activities, for tax periods beginning on or after January 1, 2025 (the threshold is adjusted every 2 years). Proprietors file Form NH-1040. If the tax is more than $200, four 25% estimated payments are due on the 15th day of the 4th, 6th, 9th, and 12th months.
- New Hampshire Business Enterprise Tax (BET)
- 0.55% tax on the enterprise value tax base, which is compensation, interest, and dividends paid. A business must file if it has more than $298,000 in gross receipts or more than $298,000 in enterprise value tax base, for tax periods beginning on or after January 1, 2025 (adjusted every 2 years). BET paid can be credited against the BPT.
- Unemployment ABC test (RSA 282-A:9, III)
- For unemployment insurance, paid services count as employment unless the state is shown all three: the worker is free from control, the work is outside the business's usual course or outside all its places of business, and the worker is customarily in an independently established business.
- Wage-law independent contractor criteria (RSA 275:42, II)
- Under New Hampshire wage law, a worker is not an employee only if they meet all 7 criteria. They have an EIN or SSN; control how the work is done; control when it is done; hire and pay their own helpers; hold themselves out as in business (or are registered with the state) with ongoing business obligations; are responsible for finishing the work; and are not required to work only for that business.
Federal rules for 2026
Solo 401(k) up to $72,000
A one-person consultancy can contribute a $24,500 employee deferral plus an employer share of about 20% of net self-employment earnings, up to $72,000 in 2026, plus an $8,000 catch-up at 50 or older ($11,250 at ages 60 to 63).
The S-corp trade-off
Electing S-corp status can cut payroll tax, but the salary you pay yourself also sets your Solo 401(k) room. Run both sides before you elect.
Quarterly estimated taxes
No one withholds tax from self-employment income, so you generally pay estimates four times a year if you expect to owe $1,000 or more. For 2026 income the federal dates are April 15, June 15 and September 15, 2026, and January 15, 2027. Paying 100% of last year's tax (110% if your AGI was over $150,000) in four equal installments avoids the underpayment penalty.
Self-employment tax
On top of income tax, self-employed people pay 15.3% on 92.35% of net profit: 12.4% Social Security up to the 2026 wage base of $184,500, plus 2.9% Medicare with no cap. Half of it is deductible.
A worked example
| Self-employment tax (sole proprietor) | $21,194 |
|---|---|
| Solo 401(k) maximum | $52,381 |
| SEP IRA maximum | $27,881 |
| Payroll tax saved as an S-corp on a $75,000 salary | $9,719 |
| Solo 401(k) maximum as that S-corp | $43,250 |
Federal figures only, before state and local taxes. Simplified: excludes the QBI deduction and the 0.9% Additional Medicare Tax. Computed from 2026 IRS limits (Notice 2025-67, Rev. Proc. 2025-32) and the SSA wage base.
Free tools
Guides by job and platform
Questions
Do consultants in New Hampshire pay state income tax?
New Hampshire has no state income tax on wages or self-employment income. The Interest & Dividends Tax was repealed for tax periods beginning on or after January 1, 2025. New Hampshire does not tax wages, but its business taxes (BPT/BET) apply to proprietorships above the filing thresholds.
Are there other New Hampshire taxes for self-employed consultants?
New Hampshire Business Profits Tax (BPT): 7.5% tax on New Hampshire business profits. It applies to proprietorships, LLCs, and other business organizations with more than $109,000 in gross business income from all activities, for tax periods beginning on or after January 1, 2025 (the threshold is adjusted every 2 years). Proprietors file Form NH-1040. If the tax is more than $200, four 25% estimated payments are due on the 15th day of the 4th, 6th, 9th, and 12th months. New Hampshire Business Enterprise Tax (BET): 0.55% tax on the enterprise value tax base, which is compensation, interest, and dividends paid. A business must file if it has more than $298,000 in gross receipts or more than $298,000 in enterprise value tax base, for tax periods beginning on or after January 1, 2025 (adjusted every 2 years). BET paid can be credited against the BPT.
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Sources
- www.revenue.nh.gov/news-and-media/nh-department-revenue-administration-shares-2026-tax-tips-and-filing-guidance
- gc.nh.gov/rsa/html/XXIII/279/279-21.htm
- www.revenue.nh.gov/resource-center/frequently-asked-questions/business-profits-tax
- www.revenue.nh.gov/taxes-glance/business-taxes
- gc.nh.gov/rsa/html/XXIII/282-A/282-A-9.htm
- gc.nh.gov/rsa/html/XXIII/275/275-42.htm
State and local facts researched from official sources and independently re-checked; last verified October 2026, next scheduled review 2027-01-02. Educational information for 2026, not tax, legal or investment advice. Rules change; check the official sources listed and a tax professional for your situation. Gigaverse AI, Inc. is a financial technology company, not a bank, and not itself a registered investment adviser or broker-dealer.