How the NH Tax Shift Plan Would Work

  • A personal income tax with a rate of 3.95%
  • Start with Adjusted Gross Income (AGI) from Federal Form 1040
  • Deduct Standard Deductions (same as for Federal Income Tax):
    • $6,200 for single filers
    • $12,400 for joint filers
    • $9,100 for head of household filers
    • Deduct $3,800 for each exemption (same as for Federal Income Tax)
    • Make adjustments for income earned out of state
  • This would raise $1.222 billion
    • $30 million would go to administer the tax
    •  $363 million would go to the Education Trust Fund (ETF) to replace money raised through the Statewide Education Property Tax. (SWEPT)
      • The SWEPT would be repealed
    • $41 million would go to the ETF to replace money raised by the Utility Property Tax
      • The Utility Property Tax would be repealed
    • $89 million would go to the General Fund to replace money raised by the Interest & Dividends Tax (I & D).
      • The I & D would be repealed.
    • $178 million would go to the ETF & $89 million would go to the General Fund to replace money raised through the Business Enterprise Tax (BET).
      • The BET would be repealed
    • $71 million would go to the ETF & $142 million would go to the General Fund to replace money raised through the Business Profits Tax (BPT).
      • The BPT would be lowered to 4% from 8.5%
    • $47 million would go to the Earned Income Tax Credit.
    • $150 million would go to Municipalities as a contribution to their retirement costs.
    • $21 million would go to the General Fund.