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Taxes & Incentives

NEW HAMPSHIRE

New Hampshire does not have a general sales or use tax.

N.H. Business Profits Tax

An 8.5% tax, for taxable periods ending on or after July 1, 2001, is assessed on income from conducting business activity within the state. For multi-state businesses, income is apportioned, using a weighted sales factor of 2 and the payroll and property factors. Organizations operating a unitary business must use combined reporting in filing their NH return.

Any business organization, organized for gain or profit carrying on business activity within the state is subject to this tax. However, organizations with $50,000 or less of gross business income from all their activities are not required to file a return.

NH Business Enterprise tax

0.75% tax is assessed on the enterprise value tax base, which is the sum of all compensation paid or accrued, interest paid or accrued, and dividends paid by the business enterprise, after special adjustments and apportionment. Enterprises with more than $150,000 of gross receipts from all their activities, or an enterprise value tax base more than $75,000, are required to file a return.

 VERMONT

General Sales Tax

Vermont's general sales tax rate is 6%. The tax is imposed on sales of tangible personal property, certain public utility services, fabrication services, amusement charges, telephone calling cards, and certain service contracts. There are 44 exemptions, including food, clothing with purchase price of $110 or less, medicines, machinery and equipment used in manufacturing, fuel and electricity used in residences and fuels used at manufacturing sites of tangible personal property for sale. Tax is also imposed at rate of 4.36% on telecommunication services (but not those provided with respect to calling cards) with an exemption for the first $20 of residential local exchange service

Corporate Income Tax

Vermont has a corporate net income tax. The rates are shown below. They apply to taxable income allocated or apportioned to Vermont.

$10,001 to 25,000 $700
plus 8.10% of the excess over $10,000

$250,001 and over $22,615
plus 9.75% of the excess over $250,000

Corporations, S corporations, partnerships and limited liability companies are subject to a minimum tax of $250. Small farm corporations are subject to a $75 minimum tax.

 


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