BNN Tax Snacks: New Hampshire’s I&D Tax – An Early Exit
The New Hampshire I&D tax has long imposed a tax on interest and dividends earned by its resident individuals and certain entities – a tax that as of a couple years ago was scheduled to phase out by dropping a percentage point each year until phasing out completely in 2027. However, legislation passed this year accelerates that phaseout, causing the New Hampshire I&D tax to disappear completely for the year 2025 rather than 2027.
The new phaseout schedule looks like this:
- Years ending before December 31, 2023:Â Â Â Â Â Â Â 5%
- Years ending on or after December 31, 2023: Â Â Â Â Â 4%
- Years ending on or after December 31, 2024: Â Â Â Â Â 3%
- Years ending on or after December 31, 2025: Â Â Â Â Â 2% (Now 0%)
- Years ending on or after December 31, 2026: Â Â Â Â Â 1% (Now 0%)
- Years ending on or after December 31, 2027: Â Â Â Â Â 0%