New Hampshire — Corporate Income / Franchise Tax

New Hampshire imposes a Business Profits Tax (BPT) on the taxable business profits of every "business organization" conducting business activity within the state. A business organization is defined as any enterprise—whether corporation, partnership, limited liability company, proprietorship, association, business trust, real estate trust, or other form—organized for gain or profit and carrying on business activity in New Hampshire, except enterprises expressly exempt from income taxation under the Internal Revenue Code. Each entity is taxed separately unless specifically authorized to file using combined reporting. Pass-through entities such as S corporations, partnerships, and LLCs are taxed at the entity level under the BPT; their earnings are not included in the calculation of the owners' business profits.

For taxable periods ending on or after December 31, 2023, the BPT rate is 7.5 percent. Business organizations with gross business income from all activities exceeding $109,000 (for taxable periods beginning on or after January 1, 2025) must file a BPT return. This threshold is adjusted biennially for inflation.

Source: RSA 77-A:1, I; RSA 77-A:2; N.H. DOR Business Taxes

New Hampshire defines "business activity" as "a substantial economic presence evidenced by a purposeful direction of business toward the state examined in light of the frequency, quantity, and systematic nature of a business organization's economic contacts with the state." The term includes "a group of actions performed by a business organization for the purpose of earning income or profit" and "every operation which forms a part of, or a step in, the process of earning income or profit from such group of actions." Actions ordinarily include employing business assets, receiving money or property, and incurring or paying expenses.

Source: RSA 77-A:1, XII

New Hampshire's Business Profits Tax apportionment formula changed significantly effective for taxable periods ending on or after December 31, 2022. For periods ending before that date, multi-state businesses apportioned income using a three-factor formula: property, payroll, and sales, with the sales factor counted twice (double-weighted). For taxable periods ending on or after December 31, 2022, New Hampshire uses a single sales factor apportionment formula exclusively.

Source: RSA 77-A:3, I; N.H. DOR FAQ

The filing deadlines for New Hampshire’s Business Profits Tax (BPT) are controlled by primary statutory authority:

• Partnerships (entities required to file a U.S. partnership return) must file their BPT return on or before the fifteenth day of the third month following the close of their taxable period.
• Exempt organizations (entities required to file a U.S. exempt organization return, such as nonprofits) must file on or before the fifteenth day of the fifth month following the close of their taxable period.
• All other business organizations (including corporations—both for-profit and S-type, proprietorships, fiduciaries, combined groups, etc.) must file on or before the fifteenth day of the fourth month following the close of their taxable period.

These deadlines are established by statute (RSA 77-A:6) and remain controlling as of June 16, 2026.

Administrative regulations (N.H. Admin. Code Rev 307.12) confirm that short-period returns by partnerships are due by the 15th day of the third month, and returns for combined groups and all others by the 15th day of the fourth month, consistent with the statutory scheme.

Source: RSA 77-A:6; N.H. Admin. Code Rev 307.12

Caution / review status: Human confirmed by SALT retired-author as of 2026-06-16.

New Hampshire uses market-based sourcing to assign receipts to the sales factor numerator for taxable periods ending on or after December 31, 2021. Under this methodology, receipts are sourced to where the customer receives the benefit of the service or property (the "market"), rather than where the taxpayer incurs costs of performance. Because New Hampshire applies a single-sales-factor apportionment formula for these periods, the proper assignment of receipts to New Hampshire directly determines the apportionment percentage and resulting tax liability.

Tangible personal property sourcing

N.H. Admin. Code Rev 304.04(c) directs that the sales factor numerator "shall include the sum of" the following categories for tangible personal property:

1. Delivery rule: "Sales of tangible personal property, regardless of the conditions of sale delivered in New Hampshire, other than to the United States government";
2. Throwback rule: "Sales of tangible personal property originating in New Hampshire to a purchaser in another state in which the business organization is not taxable or subject to tax";
3. U.S. government sales from NH: "Sales of tangible personal property originating in New Hampshire and delivered to the United States government in any state";
4. Property gains: "Ordinary net gains or losses and capital gains from the sale of real or tangible property, if and to the extent the property is located in this state."

The throwback rule under item (2) applies only to tangible personal property and only when the business is not taxable in the destination state.

Service sourcing – market-based rules

For services delivered to customers, Rev 304.04 establishes distinct market-based sourcing rules depending on delivery method:

• In-person services (Rev 304.04(c)): "In the case of the delivery of a service to a customer by in-person means, the service shall be considered delivered in New Hampshire if and to the extent that the customer receives the service in New Hampshire."
• Electronic transmission to customers (Rev 304.04(d)): "In the case of the delivery of a service to a customer by electronic transmission, the service shall be considered delivered in New Hampshire if and to the extent that the taxpayer's customer receives the service in New Hampshire."
• Electronic delivery to end users through a customer (Rev 304.04(e)): "In the case of the delivery of a service by electronic transmission, where the service is delivered electronically to end users or other third-party recipients through or on behalf of the customer, the service shall be considered delivered in New Hampshire if and to the extent that the end users or other third-party recipients are in New Hampshire."

These service sourcing rules replaced the cost-of-performance method that applied to taxable periods ending before December 31, 2021. Under the prior cost-of-performance method, 100% of service receipts were assigned to the state where the greater proportion of income-producing activity was performed—an all-or-nothing approach.

Other receipts sourcing

Rev 304.04(c) also specifies New Hampshire sourcing for:

• Interest on receivables: "Where the debtor or the encumbered property is located in New Hampshire";
• Gross receipts from leases, rentals, or other use of property: If the property is located in New Hampshire;
• Dividends and other income: "If and to the extent the income is derived from sources in this state."

Reasonable approximation when assignment cannot be determined

Rev 304.04(g) provides: "In the case of sales other than sales of tangible personal property, if the state or states of assignment cannot be determined, the state or states of assignment shall be reasonably approximated." Acceptable methods include "multiplying such sales by a percentage that equals the ratio that the population of New Hampshire bears to the combined total population of every state within the United States where such business organization is taxable or subject to tax." The regulation requires that "the need, and methodology used, for reasonable approximation shall be determined on a separate entity basis consistent with the separate entity treatment provided in RSA 77-A:1, I, notwithstanding that a combined report is filed."

Throwout rule

Rev 304.04(h) establishes a throwout rule (distinct from the throwback rule for tangible personal property): "In the case of sales other than sales of tangible personal property, if the taxpayer is not taxable in a state to which a sale is assigned, or if the state of assignment cannot be determined or reasonably approximated, such sale shall be excluded" from the sales factor. This exclusion applies to both the numerator and the denominator.

The throwback rule assigns receipts to New Hampshire when the taxpayer is not taxable in the destination state (tangible personal property only), while the throwout rule excludes receipts from the sales factor entirely when the taxpayer is not taxable in the state of assignment or assignment cannot be determined (applies to receipts other than tangible personal property).

Source: RSA 77-A:3; N.H. Admin. Code Rev 304.04

New Hampshire requires combined reporting for business organizations that constitute a unitary business, and prohibits it for non-unitary businesses. This is not an election; the unitary determination drives the filing method.

Unitary business definition

RSA 77-A:1, XIV defines "unitary business" as "one or more related business organizations engaged in business activity both within and without this state among which there exists a unity of ownership, operation, and use; or an interdependence in their functions." The Department of Revenue Administration applies this standard by evaluating whether related entities share integrated management, centralized functions, economies of scale, or functional integration such that the business income of the group cannot be accurately measured on a separate-entity basis.

Combined reporting mandate

RSA 77-A:3, III provides: "When 2 or more related business organizations are engaged in a unitary business, as defined in RSA 77-A:1, XIV, a part of which is conducted in this state by one or more members of the group, the income attributable to this state shall be determined by means of the applicable combined apportionment factors of the unitary business group." This language is mandatory—organizations meeting the unitary standard must file using combined reporting.

The New Hampshire Supreme Court confirmed this requirement in General Electric Co. v. Commissioner, 154 N.H. 457, 914 A.2d 246 (N.H. 2006) (decided Dec. 5, 2006), holding that "[a]s a unitary business, GE is required to file under the combined reporting method."

Water's edge limitation

New Hampshire applies combined reporting on a water's edge basis under RSA 77-A:1, XV-XVI. The "water's edge combined group" includes all members of a unitary business except "overseas business organizations," defined in RSA 77-A:1, XIX as:

• Foreign incorporated business organizations, and
• Business organizations with 80% or more of the average of their payroll and property assignable to locations outside the 50 states and the District of Columbia ("80/20 companies").

Even under water's edge, certain foreign income is taxed. RSA 77-A:3, II(b) requires the addition of foreign dividends (subject to apportionment adjustments) and, for taxable periods beginning on or after January 1, 2020, global intangible low-taxed income (GILTI) as determined under IRC § 951A (adjusted by the deduction at RSA 77-A:4, XIX).

Historical context

New Hampshire adopted combined reporting for unitary businesses in 1981 to prevent large multi-form corporations from distorting income by filing on a separate-entity basis. In 1986, the legislature limited the regime to water's edge—curtailing worldwide unitary treatment. Periodic legislative proposals to replace water's edge with worldwide combined reporting have been introduced (e.g., HB 102 in 2021, HB 1567 in 2020) but have not been enacted.

Contrast with separate-entity filing

The default under RSA 77-A:1, I is separate-entity treatment: "Each business organization . . . shall be taxed on its taxable business profits as a separate entity." Combined reporting under RSA 77-A:3, III displaces that default only when the unitary standard is met. The Department of Revenue Administration FAQ confirms: "Organizations operating a unitary business must use combined reporting in filing their New Hampshire Business Tax return."

Planning considerations

• The unitary determination is fact-intensive and entity-specific; practitioners should analyze ownership structure, operational integration, and shared functions under N.H. Admin. Code Rev 300 (addressing unity of ownership, operation, use, and interdependence of functions).
• New Hampshire does not permit elective combined reporting for non-unitary groups (unlike some states that allow voluntary consolidation).
• The 80/20 exclusion applies only if the taxpayer certifies comparable-basis transfer pricing and agrees to report IRS adjustments (RSA 77-A:1, XV).
• Combined reporting interacts with the single-sales-factor apportionment method for taxable periods ending on or after December 31, 2022; careful sourcing of intercompany receipts is critical.

Source: RSA 77-A:1; RSA 77-A:3; General Electric Co. v. Commissioner, 154 N.H. 457 (2006); N.H. DOR BPT FAQ

The starting point for computing New Hampshire Business Profits Tax (BPT) is federal taxable income before net operating loss (NOL) and special deductions, determined under the Internal Revenue Code (IRC) of 1986 as in effect on a defined snapshot date (December 31, 2016 for taxable periods beginning January 1, 2018–December 31, 2019; December 31, 2018 for periods beginning January 1, 2020 and onward), with subsequent adjustments under New Hampshire law (RSA 77‑A:3‑b and RSA 77‑A:4).

Applicable IRC version and starting point New Hampshire’s Business Profits Tax begins with federal taxable income as reported on the federal return, before NOL deductions and special exclusions. According to Technical Information Release 2019‑006, for tax periods beginning January 1, 2018 through December 31, 2019, the applicable IRC is that in effect on December 31, 2016. For periods beginning January 1, 2020 and thereafter, the applicable IRC is that in effect December 31, 2018. The starting point explicitly excludes federal special deductions—such as bonus depreciation and Section 179—and NOLs and is subject to statutory adjustments. Source: NH DRA Technical Information Release 2019‑006

Principal statutory adjustments Under RSA 77‑A:4, New Hampshire law requires specific additions and subtractions to gross business profits to reach taxable business profits. Examples include:

• Subtraction for interest income from direct U.S. government obligations, net of related expenses.
• Subtraction for income already taxed or exempt under RSA 77 (e.g. related to other NH taxes).
• Addition for disallowed federal deductions such as IRC §168(k) bonus depreciation and excess §179 deductions, as directed by RSA 77‑A:3‑b.
• Recalculation of depreciation, gain/loss basis adjustments, and other items per NH-specific rules.

Source: NH-1120 Instructions (DRA)

These adjustments ensure that New Hampshire neither recognizes certain federal deductions nor double counts certain items, aligning the starting point with the state’s own tax base requirements.

Review Status: Not yet human confirmed.

Estimated payments are required for the New Hampshire Business Profits Tax (BPT) when a business organization projects an annual BPT liability exceeding $200. This requirement applies to all business organizations subject to the BPT, including corporations, LLCs, partnerships, and other entities conducting business activity in the state.

Threshold for estimated payments A business must make estimated tax payments if its annual BPT liability for the taxable period is expected to exceed $200. If a business’s liability is less than or equal to $200, estimated payments are not required. The threshold is determined on an annualized basis and applies for each tax year or period.

Quarterly due dates for estimated payments There are four required installments, each equal to 25% of the total estimated BPT liability for the year. The due dates for these quarterly payments are as follows:

• 1st installment: 15th day of the 4th month of the taxable period
• 2nd installment: 15th day of the 6th month of the taxable period
• 3rd installment: 15th day of the 9th month of the taxable period
• 4th installment: 15th day of the 12th month of the taxable period

For calendar-year filers, this means payments are due on April 15, June 15, September 15, and December 15. Fiscal-year filers must adjust according to their period end.

Percentage of liability due each installment Each installment must be at least 25% of the estimated liability for the year, to total 100% over the four payments. If a taxpayer first becomes subject to the estimated payment requirement partway through the year, cumulative payments are due covering all prior required installments upon becoming aware of the liability threshold being exceeded.

Penalty for underpayment If estimated payments are not made when required, interest and penalties may be assessed under New Hampshire law, specifically RSA 21-J:32.

Source: N.H. Admin. Code Rev 305.02; RSA 77-A:7

Review Status: Not yet human confirmed.

Direct answer Yes. A taxpayer subject to New Hampshire’s Business Profits Tax (BPT) automatically receives a 7‑month extension to file the return if 100% of the tax determined to be due is paid by the original due date. If full payment is not made, the taxpayer may still obtain the extension by timely submitting Form BT‑EXT (Payment Form and Application for 7‑Month Extension) along with payment of the remaining tax due.

Why RSA 77‑A:9 authorizes the New Hampshire Commissioner to grant extensions for “good cause,” waiving late‐filing penalties—though interest and late‐payment charges still accrue and failure to file within the extension voids it. This statutory power underpins the extension rule. Administrative Rule Rev 311.02 clarifies that taxpayers paying 100% of their liability by the due date receive the automatic 7‑month filing extension without needing to file BT‑EXT; otherwise, BT‑EXT must be used to request the extension. The BT‑SUMMARY filing instructions confirm that the extension applies to filing only, not payment of tax.

Source support

• Authority source (statutory): RSA 77‑A:9 — “For good cause, the commissioner may extend the time ... but the taxpayer shall be liable for interest and late payment charges…” Source: State of New Hampshire Revised Statutes § 77‑A:9
• Authority source (administrative rule): Rev 311.02 — automatic extension when 100% paid; otherwise BT‑EXT required; extension only extends filing due date. Source: Rev 300 series, Rev 311.02 (Form BT‑EXT rule)
• Supporting source (agency instruction): BT‑SUMMARY Instructions — automatic 7‑month extension if 100% of tax paid by due date; extension does not extend payment due date. Source: BT‑SUMMARY Instructions (2023)

Caution / review status Not yet human confirmed. Please ensure these sources and text align with current DRA guidance and that the wording correctly distinguishes between filing versus payment relief, and accurately reflects automatic vs. application scenarios.

Starting point – gross business profits defined Under New Hampshire's Business Profits Tax (BPT), the computation begins with a business organization's "gross business profits"—which means all income for federal income tax purposes, as determined under the Internal Revenue Code (IRC) in effect on the applicable snapshot date, with no deduction for federal or state taxes paid or accrued, and without the federal net operating loss or special deductions.

Key statutory formula

• RSA 77-A:1, IV defines "gross business profits" as "all income for federal income tax purposes, derived from or connected with New Hampshire sources, before any deduction for federal or state income, franchise, or capital stock taxes paid or accrued."
• "Taxable business profits" are determined by making the statutory additions and subtractions listed in RSA 77-A:4 to gross business profits and then applying the apportionment formula (if applicable) under RSA 77-A:3.

Additions and deductions (RSA 77-A:4) Principal adjustments required by statute to arrive at "taxable business profits" include:

• Deductions:
• Net income in the form of interest from U.S. government obligations (net of related expenses) (RSA 77-A:4, I).
• Reasonable compensation for active services by proprietors/partners, up to statutory limits (RSA 77-A:4, II).
• Add-backs:
• Amounts deducted on the federal return that are not deductible for BPT (such as certain depreciation, bonus depreciation, Section 179 deductions, etc., as provided in RSA 77-A:3-b).
• Other required state-specific add-backs, such as disallowed federal NOL deductions and special deductions.

The list in RSA 77-A:4 also includes other less frequently encountered adjustments affecting certain organizations (e.g., certain insurance income, special treatment for qualified investment companies, and foreign dividends as incorporated by statute).

Example calculation steps:

1. Begin with federal taxable income, as modified by the IRC version New Hampshire uses for the tax year.
2. Add or subtract applicable items per RSA 77-A:4 (e.g., add back federal bonus depreciation, subtract exempt interest).
3. Apportion the adjusted figure if the taxpayer is a multistate business.

Authority and agency instructions

• The NH DRA NH-1065 and NH-1120 instructions detail the computation flow and reference the required statutory adjustments.

Source: RSA 77-A:1 (Definitions) Source: RSA 77-A:4 (Additions and Deductions) Source: NH-1065 Instructions – Business Profits Tax Step-by-Step

Caution / review status: Not yet human confirmed. This section relies solely on primary statutory text and official DRA instructions current as of June 16, 2026. Review is recommended if the DRA’s administrative interpretation changes or new adjustment types become prominent.

Statutory Conformity Date New Hampshire imposes its Business Profits Tax (BPT) based on "federal taxable income" as determined under the Internal Revenue Code (IRC), but it sets its conformity to a fixed version of the IRC—known as static conformity—rather than adopting rolling updates. The relevant conformity date is established by RSA 77-A:1, XX:

• For taxable periods beginning on or after January 1, 2018 and before January 1, 2020: New Hampshire conforms to the IRC as in effect on December 31, 2016.
• For taxable periods beginning on or after January 1, 2020: New Hampshire conforms to the IRC as in effect on December 31, 2018.

Federal changes made after the applicable conformity date (such as CARES Act provisions or amendments to the IRC after December 31, 2018) are not incorporated for New Hampshire BPT purposes unless the legislature specifically updates the conformity reference.

Treatment of Key Federal Provisions

• Bonus Depreciation (IRC §168(k)) and Section 179 Expensing: New Hampshire requires addbacks for federal bonus depreciation and excess Section 179 deductions beyond what was allowed under the adopted IRC. RSA 77-A:3-b outlines the method and confirms that businesses must adjust taxable income to disallow post-conformity-date changes to these provisions.
• GILTI (IRC §951A): GILTI is included as income for BPT purposes as required by New Hampshire law, with a specific adjustment allowed under RSA 77-A:4, XIX. The NH DRA’s TIR 2019-006 and DRA tax forms provide implementation details.
• FDII (IRC §250): The federal deduction for foreign-derived intangible income is not recognized unless it was present in the relevant IRC version adopted by the state; New Hampshire does not provide a specific FDII deduction if the law postdates the state conformity date.
• Interest Expense Limitation (IRC §163(j)): New Hampshire observes the federal limitation as in place on the conformity date (December 31, 2018 for tax periods beginning on or after January 1, 2020); subsequent federal adjustments do not apply unless New Hampshire resets its conformity date in the statute.

Primary Authority and Guidance

• RSA 77-A:1, XX (sets IRC conformity date)
• RSA 77-A:3-b (provides for statutory addbacks and adjustments)
• NH DRA Technical Information Release 2019-006 (explains key decouplings and static conformity)
• NH-1120 Instructions (details computation steps and required state–federal adjustments)

Source: RSA 77-A:1, XX Source: RSA 77-A:3-b Source: NH DRA TIR 2019-006 Source: NH-1120 Instructions (2023)

Review status: Not yet human confirmed. Pending changes to conformity law should be monitored in the text of RSA 77-A:1, as primary authority.

Filing Extensions – availability, period, and specific procedure

New Hampshire provides a 7-month automatic extension to file the Business Profits Tax (BPT) return if 100% of the tax determined to be due is paid by the original return due date. Under N.H. Admin. Code Rev 311.02(a), if this payment is made in full and on time, no extension request form is required and the extension is automatically granted for filing purposes only. If the taxpayer pays less than the full amount by the original due date, a 7-month extension may still be obtained by submitting Form BT-EXT together with payment for any remaining tax due; this process is required by Rev 311.02(b). In either case, the extension applies solely to the filing deadline—not to payment of tax—and interest will accrue under RSA 21-J:32 on any unpaid amount after the original due date. Failure to file within the 7-month extension voids the extension.

Estimated Payments – requirement, threshold, schedules, and safe harbor

Estimated tax payments for BPT are required under RSA 77-A:7 if the anticipated annual BPT liability exceeds $200. This statutory threshold is confirmed in RSA 77-A:7, though the precise $200 figure is detailed in official DRA instructions (such as the NH-1040-ES and BT-SUMMARY). When applicable, four equal installments must be paid, each due on the 15th day of the 4th, 6th, 9th, and 12th months of the taxable year (calendar filers: April 15, June 15, September 15, December 15). Each installment must equal at least 25% of the estimated annual BPT liability, as established by Admin. Code Rev 305.02(b). If a taxpayer becomes subject to this requirement after the start of the tax year, DRA instructions direct that a “catch-up” payment covering all missed prior installments is due immediately. This catch-up rule is an administrative interpretation, not found explicitly in the statutes or regulations.

If estimated payments are underpaid or late, penalties and interest are imposed under RSA 21-J:32. After a review of RSA 77-A:7 and Rev 305.02, there is no specific statutory or regulatory “safe harbor” (such as a prior-year liability rule); penalty relief is available only under general reasonable cause standards recognized by the DRA.

Source: RSA 77-A:9 Source: N.H. Admin. Code Rev 311.02 Source: BT-SUMMARY Instructions (2023) Source: RSA 77-A:7 Source: N.H. Admin. Code Rev 305.02 Source: NH-1040-ES Instructions (Current Year Forms) Source: RSA 21-J:32

Note: All previously dead URLs have been replaced with live primary sources as of July 13, 2026. No substantive legal or procedural changes were detected in the authority reviewed. If a direct PDF for the NH-1040-ES Instructions resurfaces or is reissued, update accordingly.

New Hampshire's Business Profits Tax (BPT) provides explicit exemptions only for certain entities as articulated in state law. The main exemption is for organizations that are expressly made exempt from income taxation under the United States Internal Revenue Code (IRC), as incorporated by reference in RSA 77‑A:1, I. This means that a business organization—otherwise subject to the BPT—will not be taxed if it qualifies for and maintains federal income tax exemption under the IRC. Most commonly, this applies to corporations recognized as exempt under IRC § 501(a), including § 501(c)(3) charitable organizations, but the New Hampshire statute does not confer exemption based solely on an entity being nonprofit, governmental, or special-purpose; it depends on explicit exemption status under the IRC.

It is important to note that any income that does not qualify for exemption under the federal rules (such as unrelated business taxable income) may be subject to the BPT, but this statutory provision does not directly define or regulate that scope. Specific exemptions also exist for qualified investment companies (RSA 77‑A:1, XXI) and for qualified regenerative manufacturing companies (RSA 77‑A:1, XXII), each under their own stringent criteria as set forth in the statute.

No broad-based exemption from the BPT exists simply for nonprofits or governmental entities; qualification turns on the federal exemption linkage or specialized provisions in state law.

Source: RSA 77‑A:1

New Hampshire does not apply a formal economic nexus threshold—such as a sales-dollar or transaction-count test—for its Business Profits Tax (BPT) regime. Instead, the state asserts BPT jurisdiction over any out-of-state (nondomiciled) business that engages in "business activity" in New Hampshire, regardless of physical presence, as long as the activity exceeds federal constitutional limitations and is not protected under P.L. 86-272.

Direct answer New Hampshire asserts BPT nexus against out-of-state businesses—including remote sellers and service providers—if they have a substantial economic presence in the state, measured by the purposeful direction of business activity toward New Hampshire. There is no explicit economic threshold (e.g., annual sales amount or number of transactions) established by statute or regulation.

Why: Business Activity and Substantial Economic Presence Standard

• RSA 77-A:1, I imposes BPT on every business organization carrying “on business activity in the state.”
• RSA 77-A:1, XII and New Hampshire Admin. Code Rev 304.01 define "business activity" as a "substantial economic presence evidenced by a purposeful direction of business toward the state examined in light of the frequency, quantity, and systematic nature of a business organization’s economic contacts with the state."
• There is NO statute, regulation, or agency publication setting a bright-line sales threshold (unlike post-Wayfair sales tax standards in other states). Instead, New Hampshire looks to the facts—such as purposeful, continuous, or systematic economic contacts—when determining BPT nexus for an out-of-state business.
• Activities that are "protected" by P.L. 86-272 (solicitation of sales of tangible personal property by out-of-state sellers with no physical presence, where orders are approved and shipped from outside the state) are not subject to BPT. But out-of-state service providers, licensors, and remote sellers of non-tangible goods/services can be found to have BPT nexus under the substantial economic presence standard.

Authority sources and supporting guidance

• RSA 77-A:1, I (imposition of BPT on any business conducting activity in NH)
• RSA 77-A:1, XII (definition of business activity/substantial economic presence)
• NH Admin. Code Rev 304.01 (apportionment standard for out-of-state businesses; reference to the constitutional floor and P.L. 86-272 protection)

Caution / review status Not yet human confirmed. The absence of a quantitative threshold is itself confirmed by the lack of such provision in New Hampshire statute, administrative code, or agency guidance as of June 17, 2026. Practitioners should evaluate the totality of business activities to determine if BPT nexus applies to remote activity. This is stricter/sparser than the clear sales thresholds seen in sales/use tax regimes in other states.

Source: RSA 77-A:1 Source: N.H. Admin. Code Rev 304.01

Direct answer Yes, New Hampshire allows taxpayers subject to the Business Profits Tax (BPT) to obtain a 7-month extension of time to file their BPT return. This extension is granted automatically if the taxpayer pays 100% of the tax determined to be due by the original return due date. If less than 100% is paid by that date, the taxpayer may still obtain the filing extension by submitting Form BT-EXT with payment for any remaining balance. However, the extension applies only to the timeline for filing—not to payment of the BPT shown as due on the return.

Why This regime is mandated by statute and clarified in both administrative rule and DRA form instructions. RSA 77-A:9 authorizes the Commissioner to grant extensions for good cause but explicitly states that the taxpayer remains liable for interest and late payment charges accruing on any unpaid tax from the original due date. N.H. Admin. Code Rev 311.02 distinguishes between the automatic extension available when the total liability is prepaid, and the application-based extension using Form BT-EXT when any tax is unpaid. DRA instructions for Form BT-EXT specify that the extension—however obtained—relieves only the penalty for late filing, not for late payment, and that interest and late payment penalties will accrue from the original due date if full payment is not made with the extension request.

• Automatic extension: If 100% of the tax due is paid by the original deadline, the filer receives a 7-month automatic extension to file, with no explicit filing of Form BT-EXT required (N.H. Admin. Code Rev 311.02(a), BT-SUMMARY Instructions).
• Application-based extension: If less than 100% is paid, the taxpayer must file Form BT-EXT by the original due date and remit payment of the unpaid balance. The extension to file is granted if the form and payment accompany the request (Rev 311.02(b)).

Effect on Payment, Penalties, and Interest An extension to file does not extend the time to pay the tax. If the full balance due is not paid by the original deadline, statutory interest begins to accrue immediately, and the taxpayer is subject to late payment penalties under RSA 21-J:32. The extension protects only against the late filing penalty; it does not provide relief from late payment penalty or interest (see RSA 77-A:9; BT-SUMMARY Instructions, Rev 311.02(c)).

Source support Source: RSA 77-A:9 (extensions for good cause; interest/penalty liability) Source: N.H. Admin. Code Rev 311.02 (automatic and application-based extension procedures) Source: BT-EXT and BT-SUMMARY Instructions (extension limits and penalty/interest effects)

Caution / review status Not yet human confirmed. The cited law and regulations are consistent with DRA published administrative practice as of 2026-06-17. If DRA releases further administrative guidance on practical handling of late payment relief or penalty review, this section should be reviewed and updated.

Direct answer Gross receipts from sales of digital products—including electronically delivered software and cloud-based services (such as SaaS)—are sourced in New Hampshire’s Business Profits Tax (BPT) sales factor as services under the market-based sourcing rules. This means receipts are assigned to New Hampshire if, and to the extent that, the customer receives the benefit of the service in New Hampshire.

Why As of taxable periods ending on or after December 31, 2021, New Hampshire adopted market-based sourcing for services under RSA 77-A:3 and confirmed by DRA Technical Information Release 2019-006. No statute, regulation, or DRA publication establishes a special sourcing rule for digital products separate from services. Instead, all receipts from electronically delivered software, SaaS platforms, streamed content, digital databases, or other cloud-based solutions are categorized as sales of services for apportionment purposes. These are sourced to New Hampshire if the "customer receives the benefit" in the state, regardless of where the provider's operations or servers are located. The applicable Administrative Rule (Rev 304.04) explicitly covers "delivery of a service by electronic transmission" and directs that it is sourced to New Hampshire based on the recipient’s location. There is no exception or separate category for digital goods; exclusion from the tangible personal property rules is implicit, so the general services/electronic transmission standards apply.

Source support Source: N.H. Admin. Code Rev 304.04 (service and electronic transmission sourcing rules) Source: N.H. DRA TIR 2019-006 (market-based sourcing of services, digital delivery treated as services)

Caution / review status Not yet human confirmed. The regulations and DRA technical publication are current and controlling as of June 17, 2026. Practitioners should monitor for further DRA guidance as practices for digital/cloud services evolve or if a statutory carve-out is created in the future.