New Hampshire, renowned for its natural beauty, especially its White Mountains, the Lakes Region, and the fall foliage, has always held itself out as a frontrunner of innovation and development. The state is notably regarded for its role in the American Revolution and for leading the charge for independence; acts that inspired its “Live or Die State” motto. Centuries down the line, the state has held itself out again, but this time, pushing the broader acceptance of cryptocurrencies in the United States.
In May 2025, New Hampshire became the first state in the United States to open its borders to Bitcoin's broader potential and the larger cryptocurrency space. In particular, the state became the first in the United States to adopt a law allowing its treasury to invest its state fund in cryptocurrencies and solid metals that meet particular requirements.
Before this remarkable development, the state had earned a reputation for its status as a tax-friendly location. This article will therefore explore New Hampshire’s tax system, with particular attention to its cryptocurrency tax system, if any, and crypto-related regulatory developments recorded in recent times.
2.1 Overview
New Hampshire boasts a relatively friendly tax system that is well-suited to individuals looking for low-tax residency in the United States. The state’s tax system is favorable to high-income earners, business owners, and income earners. The state is one of the few in the United States that does not tax personal income, sales taxes, or capital gains taxes, making it a very competitive location for taxpayers.
However, the tax burden is shifted to other taxes, such as property taxes, which could be very hard for homeowners and renters. Generally, New Hampshire’s tax system is among the best in the US, as it is simple, promotes economic freedom, and is transparent.
The New Hampshire Department of Revenue Administration (DRA) administers and collects various taxes. The department also enforces tax laws and rules through audits, investigations, and other means to ensure taxpayers meet their obligations. In the same vein, the DRA also supervises the collections and administration of municipal taxes to ensure they are equitable and in compliance with state laws.
2.2. Main Taxes
2.2.1. Business Enterprise Tax
Business Enterprise Tax (BET) is one of New Hampshire’s primary taxes. It is deducted from business enterprise value, including compensation (such as wages or salaries), interest, and dividends paid. The tax is currently levied at a rate of 0.55% of the enterprise value tax base and is a distinctive component of New Hampshire’s tax structure.
Simply stated, the tax is measured by how much a business pays out, in contrast to the Business Profits Tax (BPT)—another major tax in New Hampshire—which is charged on an enterprise's net income. Introduced in 1993, the BET was designed to ensure that every business operating and deriving revenue from the state contributes to public revenue.
The threshold for the applicability of the tax is a gross receipt exceeding $277,000 or an enterprise value tax base above $111,000. Furthermore, the tax is deducted regardless of whether the enterprise or business reports little or no profit. The tax applies to entities such as corporations, Limited Liability Companies (LLCs), partnerships, and sole proprietorships.
2.2.2. Business Profit Tax
Business Profit Tax (BPT) is one of the primary taxes levied in New Hampshire and one of the major sources of revenue for the state’s government. It is the state’s equivalent of a corporate income tax, and it is levied on the net income of businesses operating in or deriving income from the state.
Specifically, the tax is levied on entities such as corporations, Partnerships, Limited Liability Companies (LLCs), sole proprietorships, and in some cases, Trusts and Estates. The tax threshold to come under this tax is that such an entity, as listed, must operate in New Hampshire and have gross business receipts of more than $92,000 per year.
Presently, the BPT rate is 7.5% of net taxable business profits. This rate is a drop from the previous 8.5%, which was reduced as part of New Hampshire’s ongoing tax reform efforts. Compared to other states, New Hampshire’s BPT is charged at a competitive rate and utilizes a simple formula tied closely to federal tax returns.
Overall, the BPT allows New Hampshire to draw revenue through corporate taxes while still maintaining its status as a tax-friendly location for businesses. By virtue of its administration, business enterprises and other chargeable bodies contribute to public revenue while avoiding other taxes such as personal income and sales taxes.
2.2.3. Property Tax
Property tax is the main tax levied on New Hampshire residents. The state uses the high property tax rates to compensate for the lack of an income and sales tax, and is a major revenue source for government bodies in New Hampshire. Consequently, the tax is among the highest per capita property tax burdens in the United States.
New Hampshire charges an effective rate of 1.41% of owner-occupied housing value, generating around $360 million in 2024, following a 38.3% increase from the previous fiscal year.
New Hampshire’s property taxes are administered locally. Instead of the state government, the taxes are levied and collected at the municipal, town, or city level. Accordingly, each municipality administers the tax based on its budget needs, meaning the tax rate could vary from city to city.
Even though the tax is collected at local levels, New Hampshire’s DRA conducts equalization assessments to ensure the tax rates are consistent and fair across towns. Some of the factors considered by the DRA in assessing property tax rates between towns include municipal budgets, local education budgets, and voter decisions.
The tax is levied on real properties, such as land and buildings, whether residential, commercial, or industrial. Likewise, it is charged on current-use land, although open space and farmlands may receive some tax relief.
New Hampshire does not have a specific cryptocurrency tax framework levying tax on cryptocurrency-related transactions or activities. However, businesses and other enterprises operating in the state may be subject to other taxes such as the BPT, BET, and property taxes discussed above. The absence of specific cryptocurrency taxes may be due to the lack of income and sales tax in the jurisdiction, and a deliberate attempt to position itself as a crypto-friendly location for cryptocurrency entities.
The effect of the absence of a dedicated cryptocurrency tax on entities is that it makes running of their businesses and assessing liabilities easier. Furthermore, the current tax system makes New Hampshire an ideal location for crypto entities looking to develop their product and recoup a larger percentage of their revenue that would have otherwise been lost to taxes.
On a broader look, the lack of personal income, wage taxes, or capital gains tax on cryptocurrency transactions means residents retain much of their income earned either through cryptocurrency-related activities or any other medium. Furthermore, the tax-friendly environment in New Hampshire means crypto entities could easily capitalize on existing structures to bolster their businesses while minimizing tax liabilities.
Recent regulatory efforts, including the bill to allow the state’s treasury to invest in Bitcoin, highlight the state’s effort to position itself as a top location choice for crypto-entities. In addition, it raises the possibilities of more liberal tax reforms, which may be undertaken in future years to ease existing tax burdens, and the likely introduction of incentives to further encourage crypto-related development within its boundaries.
Since 2024, New Hampshire has undertaken several legislative efforts to provide legal frameworks to guide various blockchain/cryptocurrency-related activities or propel the state to the forefront of cryptocurrency adoption and development. Last year, the state introduced a Decentralized Autonomous Organization (DAO) Act to regulate DAOs operating in the state. The legislation was designed to provide guidance on the governance and restructuring and give legal recognition to blockchain-based organizations operating or looking to set up or expand into New Hampshire.
In May 2025, the state became the first in the United States to sign a law allowing its treasury to invest 5 percent of New Hampshire’s state funds in cryptocurrency, alongside other precious metals. The law follows a decision by the Donald Trump-led US administration to create a government reserve of bitcoin and a stockpile for other digital assets.
However, before the treasury invests in any cryptocurrency, such cryptocurrency must have a market capitalization of more than $500 billion. Going by this requirement, Bitcoin is the only cryptocurrency that the treasury can legally invest in, given its $2 trillion market capitalization. Under the new legislation, 5 percent of New Hampshire’s biennial state budget of $15.17 billion, which equals $785 million, can be invested in Bitcoin. However, investing in cryptocurrency is not mandatory, and the passing of the bill only gives the treasury the right to do so.
The law's passing is significant given the blocks similar efforts are facing in other states, such as Arizona, seeking to pass a bill to allow the state to invest seized funds in bitcoin. New Hampshire House Republicans opine that the passed bill is the state’s way of taking a forefront role in forging the future of commerce and digital assets.
Aside from the recently passed bill, another bill, House Bill 639, introduced in 2025 to offer more protection to cryptocurrency miners, is also before the House. If passed, the bill would prevent state and local agencies from regulating cryptocurrency mining activities in the state, thus allowing entities in this space more freedom to carry out their activities.
The bill could also protect crypto mining entities from being banned by these agencies based on noise, energy consumption, or other factors. The probable effects of the bill are significant, given that it addresses some of the challenges crypto miners face in the United States, including complaints about the noise the facilities generate and the amount of energy they consume. Additionally, the bill would override their powers to prevent using cryptocurrency to purchase goods and services in New Hampshire.
However, the bill is still pending before the House, as the Senate has postponed passing it into law to give more time for debate. At the same time, the Senate said it is reviewing some parts of the bill, which seeks not to classify cryptocurrencies as securities or investment contracts. The regulatory move aims to diversify the state's investment portfolio and reflects a growing institutional acceptance of digital assets.
The regulatory development and broadening acceptance of cryptocurrency and crypto-related activities in New Hampshire represent expectations in the cryptocurrency market following Donald Trump’s victory. While it is still early to assess the effect of the new laws in New Hampshire, what is certain is the state’s pro-cryptocurrency stance, which could deepen in years to come.
On a broader perspective, New Hampshire could, as it has historically done, lead the charge for other states in the United States to embrace cryptocurrency more. The likely effect would be a swell in crypto-friendly jurisdictions in the US and a burgeoning list of locations where investors and developers could launch and run their crypto businesses free of regulatory persecution or restriction.
For New Hampshire, investing in Bitcoin is a way to diversify its reserves and earn a good return on its investment. However, the state’s pro-crypto stance and tax-friendly environment could spur an influx of cryptocurrency enthusiasts and developers seeking viable environments for their innovations or more returns on their investments and assets.
References
1. Briand, P. (2024, December 4). Between a rock and a hard place - NH Business Review. NH Business Review. https://www.nhbr.com/between-a-rock-and-a-hard-place/
2. https://x.com/NHHouseGOP/status/1919783308101075347
3. Redfield, M. (2025, February 3). New Hampshire Policy Points 2025: State Budget. New Hampshire Fiscal Policy Institute. https://nhfpi.org/blog/new-hampshire-policy-points-2025-state-budget/
4. Skipworth, W. (2025, May 15) New Hampshire Senate Halts Cryptocurrency Deregulation Bill, Hoping to Return to It next Year - New Hampshire Bulletin. http://newhampshirebulletin.com/2025/05/15/new-hampshire-senate-halts-cryptocurrency-deregulation-bill-hoping-to-return-to-it-next-year/
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