Key figures
Almost nothing state-specific to file
New Hampshire is the simplest state in this guide for accounts payable. It has no general sales or use tax, so the use-tax accrual on untaxed software that most states require doesn’t exist; and it has no tax on wages or contractor income, so there is no state copy of Form 1099-NEC to file. It is not part of the IRS Combined Federal/State Filing program.
That doesn’t make the payables process irrelevant. A New Hampshire company that buys from or ships into other states may still owe their use taxes, and an AP team should know where the goods and software are used, not where the company is incorporated.
Classification still matters
Contractor classification has no tax filing consequence at the state level, but it does for unemployment insurance. A worker NHES treats as an employee brings unemployment contributions and potentially back assessments, so the federal analysis still has to be done carefully for anyone working in New Hampshire.
For example: a company that pays a Manchester-based developer as a contractor for two years and then lets them go may find NHES assessing contributions for that period when the developer files for benefits.
The federal baseline
This page covers what New Hampshire adds. The federal rules underneath it apply here too.
Common questions
Do we owe use tax on SaaS used in New Hampshire?
No. New Hampshire has no general sales or use tax, so software and equipment bought for a New Hampshire office carry no state sales or use tax.
Do contractors in New Hampshire need a state 1099?
No state copy is required: New Hampshire doesn’t tax individuals’ wages or contractor income and is not in the IRS Combined Federal/State Filing program. The federal Form 1099-NEC rules still apply.
Payables next door
- MAMassachusetts payablesMassachusetts wants 1099s filed directly with DOR, applies a strict ABC test to contractors, and taxes the SaaS a startup buys at 6.25% when the vendor doesn’t collect.
- MEMaine payablesMaine requires anyone who e-files 1099s with the IRS to file Maine payees’ copies directly with MRS, applies 5% backup withholding, and charges 5.5% use tax on untaxed purchases.
- VTVermont payablesVermont takes 1099s with Form WHT-434 by January 31, outside the IRS combined program. Since July 2024 the software a startup buys is taxable, so untaxed SaaS owes use tax.
Founder guides on this
- PeopleContractor or employee? Classification for startupsContractor or employee depends on control, not the contract. The IRS test, state rules, 1099s, payroll registration and the cost of getting it wrong.
- The closeWhy startups should close their books every monthA monthly close turns a bank balance into numbers an investor, an auditor or a 409A firm will accept. What it is, and why it gets expensive to skip.
More of the New Hampshire guide
- AccountingAccounting and state tax in New HampshireCorporate tax, conformity to federal rules, apportionment and what it does to your books
- ReceivablesReceivables and sales tax in New HampshireSales tax registration, economic nexus, whether SaaS is taxable, and collecting from customers
- PayrollPayroll taxes and employer rules in New HampshireWithholding, unemployment insurance, paid leave, minimum wage and the rules on paydays
- ComplianceCompliance and filings in New HampshireRegistering to do business, annual reports, franchise tax and the filing calendar
- AdvisoryAdvisory: credits and decisions in New HampshireCredits, incentives and the decisions that are cheaper to get right the first time
Sources
Checked against each agency’s own page on . Rates and thresholds change, usually on January 1.
General information for US companies, not tax, legal or accounting advice for yours. Rules and thresholds change; confirm the specifics with a CPA or the agency before you act on them.