2026 tax year · New Hampshire
Services and task work taxes in New Hampshire
TaskRabbit, Rover, Upwork and the rest report your gross and withhold nothing. The gap between that and what you are taxed on is mileage, in New Hampshire that gap is worth $1,947 in tax.
Take a driver who grossed $34,000 over 18,000 business miles. After mileage at 74.3 cents and the rest of the stack, worked through on the services and task work page $9,030 comes off and $24,970 is left as taxable profit. That profit is what New Hampshire and the IRS charge against.
What that leaves you owing in New Hampshire
| Self-employment tax | $3,528 |
| Federal income tax | $568 |
| New Hampshire income tax | $0, no state income tax |
| Total tax | $4,097 |
| Effective rate on gross | 12.0% |
Earning more in New Hampshire
A single filer taking the standard deduction, standard mileage method, this work as the only income, the calculator above handles the other filing statuses. Miles rise with earnings, so the deduction rises too, and the effective rate on gross climbs more slowly than it would for someone whose income grew without expenses attached:
| Volume | Gross | Mileage off | Taxable profit | New Hampshire tax | Total tax | Rate on gross |
|---|---|---|---|---|---|---|
| Part-time | $11,000 | $1,485 | $9,515 | $0 | $1,344 | 12.2% |
| Steady side income | $34,000 | $4,455 | $29,545 | $0 | $5,083 | 15.0% |
| Full-time | $55,000 | $7,425 | $47,575 | $0 | $9,173 | 16.7% |
New Hampshire specifics that change the number
On the 2026 rate itself: dividend/interest tax fully eliminated effective Jan 1, 2025.
New Hampshire is also one of five states with no general sales tax, so the total tax picture is lighter than the income tax line alone suggests.
New Hampshire stopped taxing interest and dividends for periods after December 31, 2024, so wages, self-employment profit, and investment income are all now state-tax-free for individuals. Businesses are another matter: the Business Profits Tax runs 7.5%, and the Business Enterprise Tax takes 0.55% of compensation, interest, and dividends paid once gross receipts pass $298,000 (for periods beginning on or after January 1, 2025). Below that threshold a small operation files nothing.
Working across a New Hampshire line
Services income is sourced to where the work was physically done. A job over the line can create a filing obligation in that state even for a single afternoon, and reciprocity agreements do not help, they cover wages paid by an employer, not self-employment income.
On $24,970 of profit, what the states around New Hampshire would charge:
| State | Its tax | vs New Hampshire |
|---|---|---|
| Vermont | $836 | +$836 |
| Massachusetts | $1,249 | +$1,249 |
| Maine | $1,453 | +$1,453 |
- Vermont would take $836 more, $836 against New Hampshire's $0.
- Massachusetts would take $1,249 more, $1,249 against New Hampshire's $0.
- Maine would take $1,453 more, $1,453 against New Hampshire's $0.
Services and task work tax questions in New Hampshire
How much should a New Hampshire contractor set aside?
About 12.0% of gross on the $34,000 example, $4,097 across self-employment tax, federal income tax and nothing to New Hampshire. In practice that means moving about $120 of every $1,000 payout into a separate account the day it lands, and sending roughly $1,024 to the IRS each quarter, no platform withholds any of this for you. Set aside from each payout rather than finding it in April.
Does the $34,000 on my 1099-NEC match what New Hampshire taxes?
No. New Hampshire taxes profit, not gross. After $9,030 of deductions the taxable figure is $24,970, so there is no New Hampshire tax either way. But the federal side drops by $1,947. The form reports what the platform paid out, it knows nothing about your costs, and no one subtracts them for you. On this example 27% of the gross never becomes taxable income, but only for the contractor who kept the records to prove it.