- New Hampshire
What Do Therapists Need to Know About Taxes in New Hampshire?
New Hampshire doesn’t have a personal income tax — but that doesn’t mean your therapy practice is tax-free. This guide breaks down what licensed therapists need to know about business structure, self-employment tax, and the state’s unique Interest & Dividends (I&D) Tax rules.
Who this guide is for
This guide is for:
- Licensed New Hampshire therapists (LCMHCs, LICSWs, LMFTs, psychologists, etc.)
- Solo or group practice owners
- Clinicians doing in-person, telehealth, or hybrid care
- Therapists earning self-employed income from services or consulting
Step 1: Pick the right structure for your practice
Your business structure affects your taxes and compliance requirements.
Sole Proprietorship
- Default structure — no filing needed unless using a business name
- All income reported on your personal federal return
- No liability protection
- You must file a trade name with the NH Secretary of State if operating under a business name
PLLC (Professional LLC)
- Licensed professionals in New Hampshire may form PLLCs
- Offers liability protection
- Taxed like a sole prop by default
- Can elect S Corp status for tax efficiency
- Register with the NH Secretary of State
S Corporation
- Helps reduce federal self-employment tax
- Requires payroll and extra filings
- Financially worthwhile around $75K+ net income
- Not subject to NH personal income tax (because there is none), but may still be liable for Business Profits Tax (BPT)
Professional Corporation (PC)
- Permitted in NH
- Can elect S Corp status
- Slightly more complex admin requirements
- Typically used for multi-owner or more formal practices
Step 2: Know your state tax obligations
No personal income tax
- New Hampshire does not tax W-2 or self-employed income
- No state income tax return required for therapy services income
Business Profits Tax (BPT)
- NH imposes an 8.5% Business Profits Tax on businesses with gross receipts over $100,000
- Sole proprietors are exempt, but PLLCs and S Corps may trigger this depending on revenue
- Applies to net business income
- File with Form DP-80
Business Enterprise Tax (BET)
- Applies if total compensation + interest + dividends exceed $277,000/year
- Rate: 0.55%
- BET paid is credited toward your BPT liability
Annual reports
- Required for PLLCs and PCs
- Due April 1 each year
- $100 fee
- File online via the NH Annual Report system
Step 3: Pay taxes throughout the year — not just in April
Federal estimated taxes
- Still required: the IRS doesn’t care that NH doesn’t tax income
- Due quarterly: April 15, June 15, Sept 15, Jan 15
- Self-employment tax still applies unless you elect S Corp and run payroll
Filing requirements
- Sole prop: Schedule C (federal only)
- PLLC: Annual report + federal return + BPT/BET if applicable
- S Corp: Federal 1120-S + NH Form DP-80 if thresholds met + annual report
Step 4: Track and claim your deductions
Your expenses reduce your federal taxable income — and in some cases, your NH BPT/BET base.
Deductible expenses for therapists
- Office rent or home office
- EHR and scheduling software
- Supervision, CEUs, licensing
- Liability and malpractice insurance
- Advertising and directories
- Business phone, internet, supplies
- Health insurance (self-employed)
- Retirement plan contributions
Step 5: When it’s time to consider an S Corp
Even though NH has no income tax, you still pay federal self-employment tax — and S Corp can reduce that.
- Pay yourself a reasonable W-2 salary
- Take remaining income as distributions
- Avoid 15.3% SE tax on distributions
- Watch for BPT and BET thresholds
Step 6: Common mistakes therapists make
- Not filing an annual report with the state
- Missing BPT/BET thresholds and failing to file
- Electing S Corp without setting up payroll
- Skipping federal estimated taxes
- Assuming “no income tax” means no taxes at all
- Commingling business and personal finances
Step 7: Our recommendations by income level
Net Income Range Suggested Action
Under $50K Sole prop or PLLC; no state tax due; focus on federal compliance
$50K–$100K Consider S Corp; watch for BPT/BET triggers; file annual report
Over $100K Likely S Corp; monitor gross receipts; prepare BPT/BET filings
Disclaimer: This guide is for informational purposes only and does not constitute legal, tax, or financial advice. While we make every effort to keep the content accurate and up to date, state laws and regulations can change without notice. You should consult a licensed professional in your state before making any decisions based on this information. Leichter Accounting Services is not liable for any errors or omissions, or for any actions taken based on the contents of this guide.
Need help figuring this out?
We help New Hampshire therapists stay compliant with federal taxes, reduce self-employment tax, and avoid hidden state tax traps like BPT/BET.
Book a consult or email us at david@leichtercpa.com