New Hampshire 1099 taxes: a 2026 guide for the self-employed
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Krislyn ChanKrislyn Chan is a consumer subscription growth leader who has spent her career making premium services affordable and accessible. As Chief Growth Officer at Keeper, she drives growth for a platform that pairs AI with licensed tax professionals to help self-employed people keep more of what they earn. She has written more than 50 Keeper guides on tax strategy for freelancers, independent contractors, and small business owners. Previously, Krislyn was at Curology, where she helped turn dermatologist-grade custom skincare into a direct-to-consumer subscription used by millions.
Key takeaways
- 1099 income in New Hampshire is subject to two income taxes, both federal: 15.3% self-employment tax and 10% to 37% income tax. New Hampshire has no individual income tax.
- Set aside 20–25% of your profit in a high-yield savings account, so the money earns interest until your tax payments are due. For a single filer with no other income, total tax runs from 18.6% of profit at $40,000 to 26.7% at $200,000.
- The business profits tax starts above $109,000. Once your business brings in more than $109,000 before expenses, you file a New Hampshire business profits tax return, even as a sole proprietor.
- Most solo owners owe little or no business profits tax. You can deduct reasonable pay for your own work, which often brings the taxable profit of a one-person business close to $0.
- Quarterly income tax payments go only to the IRS. Federal quarterly payments are due April 15, June 15, and September 15, 2026, and January 15, 2027.
How much tax do 1099 workers pay in New Hampshire?
These tables show estimated 2026 tax on self-employment profit, the amount left after business expenses. They assume this is your only income, you take the standard deduction, and you have no kids or tax credits.
Single filer, 2026
| 1099 profit | Total tax | % of profit | Self-employment tax | Federal income tax |
|---|---|---|---|---|
| $40,000 | $7,427 | 18.6% | $5,652 | $1,775 |
| $60,000 | $12,037 | 20.1% | $8,478 | $3,559 |
| $80,000 | $16,647 | 20.8% | $11,304 | $5,344 |
| $100,000 | $22,365 | 22.4% | $14,130 | $8,235 |
| $150,000 | $37,608 | 25.1% | $21,194 | $16,413 |
| $200,000 | $53,431 | 26.7% | $28,234 | $25,196 |
Married filing jointly, one self-employed spouse, 2026
| 1099 profit | Total tax | % of profit | Self-employment tax | Federal income tax |
|---|---|---|---|---|
| $40,000 | $6,050 | 15.1% | $5,652 | $398 |
| $60,000 | $10,363 | 17.3% | $8,478 | $1,885 |
| $80,000 | $14,854 | 18.6% | $11,304 | $3,550 |
| $100,000 | $19,464 | 19.5% | $14,130 | $5,335 |
| $150,000 | $30,990 | 20.7% | $21,194 | $9,795 |
| $200,000 | $44,706 | 22.4% | $28,234 | $16,472 |
How New Hampshire taxes 1099 income
New Hampshire doesn’t tax wages or self-employment income, and its old tax on interest and dividends ended in 2025. If you’re a freelancer, independent contractor, gig worker, or solo business owner in New Hampshire, your net profit (1099 income minus business expenses) is taxed two ways, both federal:
- Federal self-employment tax: 15.3% on 92.35% of your profit. That’s 12.4% for Social Security, on earnings up to $184,500 in 2026, plus 2.9% for Medicare with no cap. It replaces the payroll taxes an employer would split with you. Estimate it with the self-employment tax calculator.
- Federal income tax: 10% to 37% on your taxable income, after the $16,100 standard deduction ($32,200 married filing jointly), half of your self-employment tax, and the 20% qualified business income (QBI) deduction.
With no income tax, New Hampshire is one of the lower-tax states for self-employed people. At $80,000 of profit, a single filer pays $16,647, about $2,613 less than in California and the same as in Texas.
New Hampshire business taxes for self-employed people
New Hampshire taxes businesses instead of people, and a sole proprietorship counts as a business. Two taxes can apply:
- Business profits tax (BPT): 7.5% of business profit. You file a return once your gross business income, what you bring in before expenses, is more than $109,000 for the year. Below that, you don’t file or pay.
- Business enterprise tax (BET): 0.55% of what your business pays out in compensation, interest, and dividends. It applies only once gross receipts or that tax base is more than $298,000, and the BET you pay is a credit against your BPT.
Before figuring BPT, a sole proprietor or single-member LLC owner can deduct reasonable compensation for the work they do in the business. It’s the amount you’d reasonably pay someone else for the same work, and it can bring your taxable profit down to $0, but not below. If you deduct more than $75,000, keep records that show the amount is reasonable.
If you owe more than $200 in BPT and BET for the year, you make estimated payments to the New Hampshire Department of Revenue Administration on April 15, June 15, September 15, and December 15. The last payment is a month earlier than the federal one.
Example: tax on $80,000 of 1099 income in New Hampshire
Here’s the math for a single self-employed person in New Hampshire with $80,000 of profit and no other income, who billed $95,000 before expenses.
| Step | Amount |
|---|---|
| Self-employment tax: $80,000 × 92.35% × 15.3% | $11,304 |
| $80,000 minus half of self-employment tax | $74,348 |
| Income the IRS taxes: $74,348 minus the $16,100 standard deduction and $11,650 QBI deduction | $46,599 |
| Federal income tax | $5,344 |
| New Hampshire business profits tax: $95,000 of gross income is under the $109,000 threshold | $0 |
| Total 2026 tax | $16,647 (20.8%) |
Self-employment tax is about two-thirds of the bill. Every dollar you write off as a business expense lowers both federal taxes, since they’re based on your profit after expenses.
What tax write-offs can I claim?
How to lower your New Hampshire 1099 tax bill
At $80,000 of profit, every $1,000 of business expenses you deduct cuts about $231 from your total tax. Common write-offs for self-employed people in New Hampshire include:
- Your phone and internet, for the share you use for work
- Car expenses, using a set rate per mile or your actual costs (compare the two)
- A home office, if you use part of your home regularly and only for work (estimate yours)
- Software, equipment, and supplies you buy for your business
- Health insurance premiums you pay as a self-employed person
- Retirement contributions to a SEP-IRA or Solo 401(k)
Most of these are small purchases spread across a year of bank and card statements, which is where they get missed. See the full list of tax write-offs for self-employed people.
Track and claim every eligible deduction with Keeper
Keeper scans your accounts for write-offs and files your return — with tax pros reviewing every one.
Try it freeQuarterly estimated taxes in New Hampshire
New Hampshire has no individual income tax, so your quarterly income tax payments go only to the IRS. You generally need to pay if you expect to owe $1,000 or more for 2026 after withholding and credits.
| Payment | Covers income earned | Due date |
|---|---|---|
| 1st | January 1 to March 31, 2026 | April 15, 2026 |
| 2nd | April 1 to May 31, 2026 | June 15, 2026 |
| 3rd | June 1 to August 31, 2026 | September 15, 2026 |
| 4th | September 1 to December 31, 2026 | January 15, 2027 |
- To avoid an underpayment penalty, pay at least the smaller of 90% of your 2026 tax or 100% of your 2025 tax.
- Higher earners: if your 2025 income was over $150,000 ($75,000 married filing separately), the prior-year amount rises to 110%.
- Business profits tax has its own estimates if you owe more than $200 in BPT and BET, with the last payment due December 15.
Get your federal payment amounts with the New Hampshire quarterly tax calculator.
Do self-employed people in New Hampshire charge sales tax?
No. New Hampshire has no general sales tax, so you don’t charge sales tax on services or products sold in the state. The one exception most people run into is the 8.5% meals and rooms tax on restaurant meals, lodging, and car rentals, which applies only if you sell those.
Should you form an LLC or S corp in New Hampshire?
You don’t need one to work as an independent contractor. If you work for yourself without forming a business, you report 1099 income on Schedule C, part of your regular tax return, and pay the taxes above.
- LLCs cost $100 to form and $100 a year for the annual report, due by April 1. An LLC doesn’t change the business profits tax rules: the same $109,000 threshold and compensation deduction apply.
- S corps can make sense once your profit is around $80,000, when the self-employment tax savings get significant. You pay yourself a reasonable salary and take the rest as profit payouts (distributions) that aren’t subject to self-employment tax. In New Hampshire, though, an S corp’s profit above your salary can owe the 7.5% business profits tax once it brings in more than $109,000.
Run the numbers for your income to see what you’d save.
7 sources
- Business profits tax FAQ (New Hampshire Department of Revenue Administration) · revenue.nh.gov
- Business enterprise tax FAQ · revenue.nh.gov
- 2025 Form NH-1040 instructions (proprietorship business profits tax return) · revenue.nh.gov
- Interest and dividends tax repeal · revenue.nh.gov
- Limited liability company forms and fees (New Hampshire Secretary of State) · sos.nh.gov
- IRS releases tax inflation adjustments for tax year 2026 · irs.gov
- Contribution and benefit base · ssa.gov
This article is for informational purposes only and isn’t tax, legal, or financial advice. Tax rules change and depend on your situation, so talk to a tax professional about yours.
