New Hampshire sits in New England, in the northern United States. It borders Vermont to the west, Maine to the east, Massachusetts to the south and the Canadian province of Québec to the north. With an area of under 25,000 km² and 1.3 million residents, "The Granite State" is one of the smaller states in the country. Its largest city is Manchester, with more than 100,000 residents. The capital is Concord.
Excellent living conditions draw top talent like a magnet, and low taxes give businesses a global competitive edge. The Tax Foundation ranks New Hampshire's business tax climate number 7 in the nation and number 1 in New England. Setting up in New Hampshire means joining a roster of forward-looking companies that are setting new standards across a wide range of industries.
With a deepwater port, Manchester-Boston Regional Airport, a rail network and three interstate highways, New Hampshire is a strategic location in the heart of New England. Its close proximity to the markets of Boston, New York and Montreal is a major draw.
FDI: an engine for the economy
New Hampshire is the most business-friendly state in the entire US, and just 45 minutes from Boston. If you want to invest in the region, New Hampshire is the place to be. 186 foreign companies from 24 countries and 46 industries have already made the move. Foreign investment is a recognized part of this fast-growing economy and currently supports around 50,000 jobs.
The number of foreign companies has grown in recent years and keeps on growing. Utilities, IT and healthcare in particular are seeing strong growth. New Hampshire has already identified foreign direct investment as a long-term growth area for the local economy.
In New Hampshire, foreign investment mainly takes the form of acquisitions, contract-driven expansions and investment in existing operations. Acquisitions by foreign companies account for around a third of all business takeovers in the Granite State. Over the past two decades, foreign companies have of course also invested in their existing operations in New Hampshire.
Close cooperation between business, government and academia gives New Hampshire a promising climate where everyone wins. The top three sources of foreign investment are companies from the UK, Canada and Germany.
A focus on education
New Hampshire intends to stay just as attractive to companies from around the world in the future. A highly educated workforce is one of the basic requirements for businesses choosing where to set up. The Granite State boasts one of the highest percentages of college graduates, and for years it has ranked near the top for the number of people working in science and technology.
Strong partnerships already exist between community colleges, state universities and industry. Tailored training programs ensure talent is developed strategically. The result: highly skilled, motivated employees.
New Hampshire actively helps businesses find qualified staff through its educational resources and training programs. That keeps both the state and the companies based there highly competitive.
Income tax in New Hampshire
New Hampshire levies no income tax on wages and salaries, and the former tax on interest and dividend income has been repealed for tax years from 2025 onward. Federal income tax still applies.
Corporate tax in New Hampshire
New Hampshire levies a corporate tax (Business Profits Tax) of 7.5%. Federal corporate tax applies on top.
Sales tax in New Hampshire
The USA has no VAT on the European model. Instead, states, counties and municipalities levy a local sales tax on the sale of goods (but not services).
Sales tax rate in New Hampshire
New Hampshire has no sales tax.
For an overview of every state, see our directory US states at a glance. Our guide Which US state is best for your company? helps you pick the right state, and the guide to forming a US company walks you through the process. And if you want to run your US LLC tax-free without a US permanent establishment, our sister site zerotax.llc is the place to go.
How we help with New Hampshire:
Planning to do business in New Hampshire? Our overview of US company formation helps you find the right entity type and state, and in a consultation we go through your plans together.