BNN Tax Snacks: New Hampshire’s I&D Tax – An Early Exit

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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:              5%
  • Years ending on or after December 31, 2023:       4%
  • Years ending on or after December 31, 2024:       3%
  • Years ending on or after December 31, 2025:       2% (Now 0%)
  • Years ending on or after December 31, 2026:       1% (Now 0%)
  • Years ending on or after December 31, 2027:       0%