New Hampshire: A New Frontier in Crypto Assets Taxation and Regulation

1. Introduction

New Hampshire is known for its beautiful natural scenery, especially the White Mountains, the Lakes Region, and the vibrant fall foliage. As an important participant in the American Revolutionary War, the state is widely recognized for its motto "Live Free or Die." Today, this pioneer of innovation and development is once again at the forefront, this time in promoting the acceptance of Crypto Assets: in May 2025, New Hampshire became the first state in the U.S. to establish a Bitcoin reserve through legislation.

Prior to this, the state had earned widespread acclaim from the Crypto Assets industry for its friendly tax policies. This article will delve into New Hampshire's tax system, particularly the tax regulations related to Crypto Assets, as well as recent regulatory developments in the Crypto Assets space.

2. The Basic Tax System of New Hampshire

2.1 Overview

New Hampshire has a relatively friendly tax system, making it very suitable for individuals seeking low tax burdens in the United States. The state's tax regime is beneficial for high-income earners, business owners, and wage earners. As one of the few states in the U.S. that does not impose personal income tax, sales tax, or capital gains tax, New Hampshire is extremely attractive to taxpayers. However, the state's tax burden is mainly shifted to other types of taxes, particularly property tax, which can place significant pressure on landlords and tenants.

Overall, New Hampshire's tax system holds an advantageous position in the United States, characterized by its simplicity, economic freedom, and high transparency. The State Department of Revenue Administration is responsible for collecting and managing various taxes, and ensures taxpayer compliance through audits, investigations, and other means. At the same time, the department also supervises the administration of municipal taxes to ensure fairness and compliance with state law.

2.2 Main Tax Categories

2.2.1 Business Operation Tax

The business profits tax is one of the main taxes in New Hampshire, levied based on the value of the business entity at a rate of 0.55%. This tax applies to all types of business entities with gross revenues exceeding $277,000 or a business value tax base exceeding $111,000, and must be paid regardless of whether the business is profitable.

2.2.2 Corporate Profit Tax

Corporate profit tax is equivalent to state-level corporate income tax, taxing the net profits of enterprises from income generated within the state. It applies to entities with annual gross revenues exceeding $92,000, and the current tax rate is 7.5% of taxable net profits.

2.2.3 Property Tax

Property tax is the main tax and primary source of revenue paid by residents of New Hampshire. The state relies on high property taxes to compensate for the lack of personal income tax and sales tax, making the per capita property tax burden one of the highest in the nation. In 2024, this tax is expected to generate approximately $360 million in revenue for the state government, a year-on-year increase of 38.3%.

2.3 New Hampshire's Crypto Assets tax system

Currently, New Hampshire has not established a specific tax framework for Crypto Assets trading or related activities. However, Crypto businesses or other economic entities operating in the state may still be subject to the aforementioned other taxes. This tax system facilitates the business operations and tax burden assessment for Crypto businesses, making New Hampshire an ideal region for Crypto businesses to develop products and gain a larger share of revenue.

From a broader perspective, not imposing personal income tax or capital gains tax means that residents can retain most of their income earned through cryptocurrency trading or other forms. New Hampshire's overall low tax burden environment also allows cryptocurrency businesses to fully leverage the existing system to expand their operations while minimizing their tax liabilities.

3. Future Development Trends of Crypto Assets Regulation in New Hampshire

Since 2024, New Hampshire has taken several legislative actions aimed at providing a legal framework for blockchain or Crypto Assets related activities, and promoting the state as a forefront of Crypto Assets application and development. Last year, the state introduced the "Decentralized Autonomous Organization Act," which provides guidance for governance, restructuring, and other matters, granting legal recognition to blockchain organizations and encouraging them to establish, expand, or relocate their operations in New Hampshire.

In May 2025, the Governor of New Hampshire announced that the state would establish a "Strategic Bitcoin and Digital Assets Reserve Fund," allowing the state treasury to invest up to 5% of public funds in digital assets with a market capitalization of over $500 billion (currently only Bitcoin meets this standard). This marks the first legal recognition of Bitcoin's reserve asset property by a local government in the United States, providing a template for legislative practices in other states.

Another House bill (No. 639) proposed in 2025 is under review, aiming to provide more protection for Crypto Assets miners. If the bill passes, it will ease the regulatory burden on state and local governments regarding Crypto Assets mining activities, granting greater freedom to practitioners in the field. The bill may also protect mining companies from being prohibited by local governments on grounds of noise, energy consumption, or other reasons, and negate the power of local governments to prevent people from using Crypto Assets to purchase goods and services.

4. Summary

The progress of Crypto Assets regulation in New Hampshire and the broad acceptance of Crypto Assets activities reflect the positive expectations of the Crypto Assets market. Although it is currently difficult to fully assess the effectiveness of the new legislation in New Hampshire, it is certain that the state's supportive stance towards Crypto Assets is likely to strengthen further in the coming years.

From a broader perspective, New Hampshire may once again play a leading role in encouraging other states in the US to more actively embrace Crypto Assets. Its potential impact will be the emergence of more Crypto Assets-friendly jurisdictions in the US, providing investors and developers with more ideal locations to establish and operate crypto businesses.

For New Hampshire, investing in Bitcoin is a way to diversify its reserves and generate substantial investment returns. At the same time, the state's supportive stance towards Crypto Assets and its low tax environment are expected to attract a large influx of Crypto Assets enthusiasts and developers, seeking favorable conditions to develop innovative projects or achieve higher returns.