The repeal of New Hampshire’s Interest & Dividends (I&D) tax in 2025 may be short-lived. In January 2025, Representative Thomas Schamberg introduced HB 503-FN, proposing to reinstate the I&D Tax at a 5% rate for periods ending on or after December 31, 2025. This bill not only looks to reinstate the I&D tax, but it also aims to increase the Business Profits Tax and the Meals and Rooms Tax.
Tax planning for 2025 is already underway, and structures put in place in anticipation of the I&D tax repeal may be too far along to unwind, but there is still hope for taxpayers. While HB 503-FN is currently under consideration in the New Hampshire legislature, the Republican majority has expressed strong opposition to this proposal, suggesting there’s a good chance the repeal will remain in effect. In either case, taxpayers and their advisors should continue to monitor the status of this bill and take measures to mitigate any potential negative impacts.
For more information and a brief history of the I&D tax in New Hampshire, and it’s potential future, read New Hampshire Ends Interest & Dividends Tax—For Now: A Detailed Look at the Repeal and Potential Return.
Matthew Marcoullier is a director at ARB. He focuses primarily on financial accounting and consulting services for auto dealerships, commercial businesses, and closely-held businesses. Matt previously served as a Senior Auditor for the State of Maine Department of Audit.
