New Hampshire tax payment plan through the DRA
You can apply online through Granite Tax Connect for a written installment payment agreement from New Hampshire’s Department of Revenue Administration. Written notice of 30 days must reach you before the agreement ends or changes.
- Tax charged on wages
- No tax charged
- Notice required for ending
- 30 days, in writing
- Late payment penalty
- 10% of unpaid tax
- Meals and rooms tax
- 8.5%
What taxes in New Hampshire can a payment plan cover?
New Hampshire does not tax wages and the former tax on interest and dividends has ended. Taxation of Incomes, the entire chapter, was repealed as of January 1, 2025, as shown on the chapter 77 RSA page.
Other taxes overseen by the DRA still generate bills. The RSA 21-J revenue law lists the Business Enterprise Tax and the Business Profits Tax as the two taxes it names. The meals and rentals tax applies too. Under RSA 78-A:6, 8.5% applies to hotel rent and to the cost of most restaurant meals.
How a DRA installment payment agreement works
State law clearly lets the Department approve an agreement. Under RSA 21-J:43, the Department may enter a written installment payment agreement if it supports recovery of overdue tax, penalties and interest. That statute includes no dollar limit and no fixed term in months.
Under RSA 21-J:43, the law protects you while you make payments. Your finances must change enough or you must break the agreement’s terms, before the DRA can change or end the plan. The DRA must provide at least 30 days’ written notice before taking action. You have a chance to catch up or explain during that window.
How can I request a payment plan through Granite Tax Connect?
You make requests online. The DRA Collections Division points users to Granite Tax Connect, the state’s tax portal, for three purposes:
- Paying a balance due in full
- Requesting a plan for amounts you owe in tax, penalties or interest
- Sending a settlement offer to settle an old balance below its full amount
Interest and penalties continue to grow
A plan does not freeze the balance. Simple interest under RSA 21-J:28 accrues from the due date until the day you pay. Each calendar year uses the IRS underpayment rate that applies on the prior September 1, plus 2 percentage points.
There is also a one-time penalty. RSA 21-J:33 adds 10% of the unpaid amount for a late payment. This does not apply if reasonable cause explains the delay and no willful neglect occurred. When fraud is involved, the penalty rises to 50%.
What the DRA can do if a bill is ignored
A lien lets the state protect its claim by putting a legal hold on the property you own. Once a notice and demand for payment has been filed, a lien under RSA 21-J:28-c covers your rights and credits, along with your real estate and personal property. Under RSA 21-J:28-d, the Department may distrain or seize personal property and credits, including money owed to you.
Restaurant and hotel owners face an additional requirement. RSA 78-A:4 prevents a meals and rentals license from being issued or renewed if the operator owes tax, interest or penalties on any DRA tax.
Using a DRA plan and an IRS plan together
In New Hampshire, a business owner may owe both the IRS and DRA at once. Each agency has its own agreement and monthly payment. Neither agency pauses the other. Put the two due dates on a shared list to avoid a slip on either side triggering the DRA’s 30-day notice.
Nearby states
Do you owe money to the DRA and to the IRS?
Do you owe money to the New Hampshire DRA and to the IRS at once? A licensed tax pro can plan both installment agreements around a single budget during a free call.
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