No state income tax.
New Hampshire has no broad-based wage or capital-gains income tax. (Historic interest-and-dividends tax was repealed effective 2025.)
Decode a New Hampshire-resident QSBS exit
The decoder loads pre-filled with NH as the state of residence. Change any input — issuance date, gain, basis — to see how this state's conformity rule reshapes the all-in tax.
What a New Hampshire resident pays
$5,000,000 exit, 5+ year hold, post-OBBBA rules.
Example gain selected deterministically per state to reflect conformity profile; post-OBBBA rules, 5+ year hold, full federal 100% exclusion within the per-issuer cap. State arithmetic uses top marginal rate as a conservative upper bound — bracketed rates apply in practice. Change any input and open in the decoder to model your own facts, then cross-check the underlying citations on sources.
Residency test — which state's rule actually applies
State conformity applies based on the taxpayer's state of residence at the time of sale, not at the time of issuance. If you held QSBS while resident in one state, then established residency in New Hampshire before the exit, New Hampshire's rule generally controls the state-tax leg of the transaction.
Part-year residents typically apportion the gain across states by residency days within the tax year. Most states also apply a statutory residence test (often a 183-day physical-presence threshold or a domicile-plus-permanent-place-of-abode rule) that can pull a recent mover back into the prior state's tax base. Establish facts — driver's license, voter registration, primary home, days-in-state log — well before the sale, not after.
The decoder does not model multi-state apportionment or residency challenges. For relocation-timed exits, consult a CPA with state residency expertise; this is the single highest-impact lever in QSBS state planning. Residency at exit also interacts with the federal five-year holding period for state purposes — the federal clock keeps running across state lines, but the state-tax leg only attaches once you cross the state's residency threshold in the year of sale. With no New Hampshire state tax on the gain, a federal §1045 rollover into QSBS issued by a company headquartered in a higher-tax state changes the future state-tax calculus when the replacement stock eventually exits — worth modeling before committing the rollover.
State-return reporting
Federally, the §1202 exclusion is reported on Form 8949 with adjustment code Q and the unexcluded slice flows to Schedule D with the 28% rate via the Schedule D 28% Rate Gain Worksheet.
The corresponding New Hampshire state-return line varies by tax year and form revision. Rather than pin a specific line number (which would stale within one filing season), this page directs you to the current New Hampshire DOR instructions for the year you are filing. If you would like a per-state line-number table maintained at this site, file a request via contact.
Recent New Hampshire legislative activity affecting QSBS
[VERIFY] No known recent New Hampshire legislative changes affecting §1202 state conformity as of 2026-05-11. Federal OBBBA (P.L. 119-21 §70431, signed 2025-07-04) modified federal §1202; state-level response varies by jurisdiction. This slot is reviewed during each conformity-manifest refresh.
New Hampshire QSBS — frequently asked
Does New Hampshire tax my §1202 QSBS gain at the state level?
New Hampshire has no broad-based personal income tax on capital gains, so there is no state-level tax on a §1202 QSBS gain by residents. The federal exclusion is preserved 1:1.
What is New Hampshire's top marginal rate on capital gains?
New Hampshire has no state-level personal income tax on capital gains, so the marginal rate for §1202 purposes is effectively 0%.
If I moved to New Hampshire just before selling QSBS, does the state resident rule apply?
State conformity follows the taxpayer's state of residence at the time of sale, not at issuance. If you established New Hampshire residency just before selling QSBS, New Hampshire's rule generally applies — subject to that state's domicile, statutory-residence (days-physical-presence), and part-year apportionment tests. Pre-exit relocation is a common founder planning lever; the rules to clear are state-specific.
Does New Hampshire honor the federal §1045 rollover?
New Hampshire has no state-level tax on the gain, so §1045 rollover behavior at the federal level is the only consideration. The federal rollover defers the gain until eventual sale of the replacement QSBS.
Where do I report the §1202 adjustment on the New Hampshire return?
New Hampshire does not require a state-level income-tax return for personal capital gains. Report the §1202 exclusion federally on Form 8949 (adjustment code Q in column (f)).
Compare New Hampshire to other states
Same federal exclusion, different state rule. The 50-state grid colors each.