Author | FinTax
1. Introduction
New Hampshire, known for its natural beauty, especially the White Mountains, the lakes, and the autumn maple leaves, has always been a pioneer in innovation and development. As a state that played an important role in the American Revolutionary War and led the independence process, New Hampshire is widely known for its state motto "Live free or die". Centuries later, the state once again played a pioneering role, but this time, it was to promote the wider acceptance of cryptocurrencies in American states: in May 2025, New Hampshire became the first state in the United States to legislate the establishment of a Bitcoin reserve.
Prior to this major development, the state had already won widespread praise from the crypto industry for its friendly tax policies. In light of this, this article will explore New Hampshire’s tax system (especially cryptocurrency-related tax system) and recent regulatory developments related to cryptocurrencies.
2. New Hampshire's Basic Tax System
2.1 Overview
New Hampshire has a relatively friendly tax system, which is very suitable for individuals who are looking for a low-tax residence in the United States. The state's tax system is quite favorable to high-income earners, business owners and wage earners. As one of the few states in the United States that does not impose personal income tax, sales tax and capital gains tax, New Hampshire is very attractive among taxpayers. In fact, the tax burden of the state is shifted to other taxes (especially property taxes), which can be a heavy burden for landlords and tenants. But overall, New Hampshire's tax system is in a superior position in the United States, characterized by a simple system, economic freedom and high transparency.
The New Hampshire Department of Revenue Administration (DRA) is responsible for collecting and administering various taxes and enforcing the law through audits, investigations, and other means to ensure that taxpayers meet their tax obligations. At the same time, DRA also oversees the collection and administration of municipal taxes to ensure that they are fair and in compliance with state laws.
2.2 Main taxes
2.2.1 Business Enterprise Tax (BET)
The Business Tax is one of the main taxes in New Hampshire. It is levied on the value of the business entity, including compensation (such as wages or salaries), interest and dividends paid, with a tax rate of 0.55%. It is one of the most distinctive components of the state's tax structure. In short, the Business Tax is measured by the scale of business activities, which is different from the other main tax in New Hampshire, the Business Profits Tax (BPT), which is levied on the net profit of the company. The Business Tax was established in 1993 to ensure that all companies that operate and earn income in the state contribute to the public treasury.
The tax is applicable to business entities such as corporations, limited liability companies, partnerships and sole proprietorships with a total business income of more than $277,000 or a business value tax basis of more than $111,000. And the tax is required regardless of whether the business has a profit or a small profit.
2.2.2 Business Profits Tax (BPT)
Corporate profit tax is also an important source of fiscal revenue and one of the main taxes for the New Hampshire state government. It is equivalent to corporate income tax at the state level and is levied on the net profit of the company's income from the state.
The tax applies to entities such as corporations, limited liability companies (LLCs), partnerships, sole proprietorships, and in some cases trusts and estates. The tax applies to entities that do business in New Hampshire and have annual gross business receipts exceeding $92,000.
The BPT is currently levied at 7.5% of taxable net profits. This rate is down from 8.5% as part of the state's ongoing tax reforms. New Hampshire has a lower corporate profit tax rate than other states and uses a simplified calculation method that is closely tied to federal tax filings.
Overall, the corporate profit tax provides New Hampshire with a way to generate revenue through corporate taxes and maintain its business-friendly tax environment. With this tax system arrangement, taxable entities such as corporate entities can contribute to the public treasury while avoiding other taxes such as personal income tax and sales tax.
2.2.3 Property Tax
New Hampshire residents also pay property taxes as a major source of revenue. The state makes up for the lack of personal income tax and sales tax with high property taxes, so the state's per capita property tax burden ranks among the highest in the United States. New Hampshire taxes owner-occupied properties at an effective rate of 1.41%, generating approximately $360 million in fiscal revenue in 2024, an increase of 38.3% over the previous fiscal year.
Property taxes in New Hampshire are the responsibility of local governments, and tax collection and management are carried out by local governments at the city and town levels. As a result, each town manages taxes based on its own budget needs, which means that tax rates may vary from place to place.
Although the tax is levied at the town level, the New Hampshire Department of Revenue conducts a tax rate equalization assessment to ensure that the tax rates are fair and uniform among towns. Factors considered in the assessment include municipal budgets, local education budgets, and voter decisions.
Property tax applies to all types of real estate, including residential, commercial and industrial land and the buildings on them. It also applies to "current-use land", but open space and agricultural land can receive certain tax exemptions.
2.3 Cryptocurrency Taxation in New Hampshire
New Hampshire has not yet established any tax framework specifically for cryptocurrency trading or other related activities. However, crypto companies or other economic entities operating in the state may still be subject to other taxes mentioned above, such as corporate profit tax (BPT), corporate operating tax (BET) and property tax. The state's lack of a specific cryptocurrency tax may be related to its lack of personal income tax and sales tax, or it may be intentional to position itself as a crypto-friendly jurisdiction.
This tax system facilitates the business operations and tax assessment of crypto companies. In addition, the existing tax framework also makes New Hampshire an ideal place for crypto companies to develop products and obtain a larger proportion of revenue. In other states, these revenues may bring more tax burdens.
From a broader perspective, the system of no personal income tax or capital gains tax means that residents can keep most of the income earned through cryptocurrency trading or other forms. And New Hampshire's overall low tax environment also enables cryptocurrency companies to make full use of the existing system to expand their business while minimizing their tax burden. The state may also carry out more liberal tax reforms in the future to reduce the existing tax burden and introduce incentives to further encourage the development of the crypto industry in the state.
3. Future development trend of cryptocurrency regulation in New Hampshire
Since 2024, New Hampshire has taken several legislative actions aimed at providing a legal framework for blockchain or cryptocurrency-related activities and pushing the state to the forefront of cryptocurrency applications and development. Last year, the state introduced the Decentralized Autonomous Organization Act to regulate decentralized autonomous organizations operating in the state. The legislation aims to provide guidance on governance, reorganization and other matters, and give blockchain organizations legal recognition to encourage them to establish, expand or relocate their businesses in New Hampshire.
In May 2025, Kelly Ayotte, governor of New Hampshire, officially announced that the state would establish a "Strategic Bitcoin and Digital Asset Reserve Fund", allowing the state treasury to invest up to 5% of public funds in digital assets with a market value of more than $500 billion (currently only Bitcoin meets the criteria), while New Hampshire's total biennial budget is $151.7 billion, of which 5% is $785 million. Prior to this, the Trump administration had just introduced a policy to establish reserves of Bitcoin and other digital assets. The signing of this bill in New Hampshire marks the first time that a local government in the United States has legally recognized the reserve asset attributes of Bitcoin, and provides a template for legislative practices in other states. However, the bill does not mandate investment, but only grants the state finance department the right to invest.
In addition to the recently passed bill, another House Bill (No. 639) is currently under consideration for 2025. It aims to provide more protections for cryptocurrency miners. If passed, it will reduce the regulatory intensity of state and local governments on cryptocurrency mining activities, giving practitioners in this field greater freedom. In addition, the bill may also protect miners from being banned by local governments for noise, energy consumption or other reasons. The potential impact of this bill cannot be underestimated, as it touches on some of the key challenges currently faced by cryptocurrency miners in the United States, including noise and energy use issues at mining facilities. The bill will also deny local governments the power to prevent people from using cryptocurrencies to purchase goods and services. However, the bill is still pending in the House of Representatives, and the State Senate has decided to suspend the legislative process to allow more time for debate. Meanwhile, the Senate is also reviewing some provisions of the bill, especially the content that proposes not to classify cryptocurrencies as securities or investment contracts. This regulatory move is aimed at diversifying the state's investment portfolio and also reflects the growing institutional recognition of digital assets.
4. Conclusion
New Hampshire's progress in cryptocurrency regulation and its broad acceptance of cryptocurrency activities reflect the positive expectations for the cryptocurrency market after Trump's second term in office. Although it is difficult to fully evaluate the effectiveness of the new bill in New Hampshire, it is certain that the state's support for cryptocurrency is likely to be further strengthened in the coming years.
From a broader perspective, New Hampshire may once again play a leading role in leading other states in the U.S. to more actively embrace cryptocurrencies. The potential impact will be the emergence of more crypto-friendly jurisdictions in the U.S., forming an ever-expanding crypto whitelist, providing investors and developers with more ideal locations to start and operate crypto businesses without regulatory suppression or restrictions.
For New Hampshire, investing in Bitcoin is a way to diversify its reserves and bring considerable investment returns. At the same time, the state's support for cryptocurrencies and low tax environment are expected to attract a large number of cryptocurrency enthusiasts and developers to seek favorable soil for their own development of innovative projects or to obtain higher returns.
