Bartenders & Servers in New Hampshire: taxes and retirement for 2026
For bartenders, servers, baristas and other workers paid largely in tips 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 bartenders & servers
- 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 The Interest & Dividends Tax was repealed for tax periods beginning on or after January 1, 2025.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.
- Minimum wage (2026)
- $7.25 an hour; tipped cash wage $3.27 an hour. New Hampshire law sets its minimum wage at the federal rate. Tipped workers at restaurants, hotels, and similar businesses who receive more than $30 a month in tips must get a base rate of at least 45% of the minimum ($3.27), and tips must bring them to $7.25.
- 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
No tax on tips (2025 to 2028)
Eligible workers in occupations that customarily receive tips can deduct up to $25,000 of qualified tips a year from federal taxable income, whether or not they itemize. The deduction shrinks for modified AGI over $150,000 ($300,000 joint). It is income tax only: Social Security and Medicare still apply to tips.
Tips must be reported
Employees must report cash tips of $20 or more in a month to their employer by the 10th of the next month. Tips you did not report go on Form 4137. Only reported tips count toward the deduction.
Overtime deduction
W-2 workers who are owed overtime under federal law can also deduct the overtime premium, up to $12,500 a year ($25,000 joint), with the same income phase-out.
Roth IRA
Without a workplace plan, a Roth IRA lets you save up to $7,500 in 2026 ($8,600 at 50 or older) and withdraw qualified money tax-free in retirement, subject to income limits.
A worked example
| Tips deduction | $15,000 |
|---|---|
| Federal income tax without the deduction | $3,220 |
| Federal income tax with it | $1,420 |
| Federal income tax saved | $1,800 |
Single filer, standard deduction, 2026 brackets. Payroll taxes on tips are unchanged. 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 bartenders & servers 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 bartenders & servers?
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.
What is the tipped minimum wage in New Hampshire in 2026?
New Hampshire's 2026 minimum wage is $7.25 an hour. Employers may pay tipped workers a cash wage of $3.27 an hour as long as tips bring them to the full minimum. New Hampshire law sets its minimum wage at the federal rate. Tipped workers at restaurants, hotels, and similar businesses who receive more than $30 a month in tips must get a base rate of at least 45% of the minimum ($3.27), and tips must bring them to $7.25.
Track it in one place
Gigaverse estimates your quarterly taxes from what you actually earn, logs business trips, categorizes expenses from your bank and answers money questions with your own numbers. Retirement accounts are coming soon.
Free · Takes 10 seconds · First 1,000 in line get launch perks
On Android? Get the app on Google PlayMore in New Hampshire
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.