Within the last 6 months I announced that I had committed to relocating the NH within about a year. I've recently begun doing heavy research--in this case, taxation. I knew about the 5% interest and dividends tax. I don't like it, it hurts me, but I can cope with it. Very high property taxes has been a major irk for me, but I rationalize it with no income and no sales tax. It's a big deal, but can be mitigated. I have to ask though, what is going on with the Business Enterprise Tax and Business Profits Taxes?
I have to pay a tax on what I pay my employees? Ideology aside, the sum seems trivial at a rate of 0.75%, but these sort of taxes never stay small forever. Far more alarming is the Business Profits Tax. The tax rate is 8.2%! Here I was thinking New Hampshire was great in not having an income tax, but it appears that if you own a business--you do! That's a very startling discovery for me, and gives me serious reservations. One of my major motivations for relocating was to lower my extortion rate. First a property tax rate that was likely to double or triple, now an income tax on businesses of 8.2%? Major problem.
It doesn't look like there is any real way to mitigate this burden. Is there a business owner here with some knowledge/experience on the matter? My effective tax rate could actually increase relative to my current residence. It would be difficult for me to rationalize fleeing my current yoke for liberty, only to don a heavier one. This, very seriously, could be a deal breaker for me.