Virtual Assistant Taxes in New Hampshire - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for a Virtual Assistant in New Hampshire

Operating a virtual assistant business from the Granite State offers a unique blend of independence and opportunity, but navigating the tax landscape requires careful attention. As a self-employed individual, understanding your federal and state tax obligations is crucial for financial success.

All income earned as a Virtual Assistant must be reported to the IRS on Schedule C (Profit or Loss from Business) as part of your Form 1040. Crucially, earnings exceeding $400 necessitate the payment of self-employment tax, covering both Social Security and Medicare contributions. Accurate record-keeping throughout the year is paramount to ensure proper reporting and maximize potential deductions.

How New Hampshire Handles Gig Worker Taxes

New Hampshire distinguishes itself from most states with a unique tax structure – it has no state income tax. This means Virtual Assistants operating within the state are not subject to a state-level income tax on their earnings. However, this does not exempt you from federal income tax or self-employment tax obligations. The lack of state income tax is a significant benefit, often attracting entrepreneurs to the state, but it’s vital to remember that federal taxes remain fully applicable. New Hampshire does levy taxes on interest and dividends, but these are generally not relevant to the income stream of a typical Virtual Assistant. Furthermore, while there's no income tax, businesses operating in New Hampshire are subject to other taxes, such as the Business Enterprise Tax (BET) and the Business Profits Tax (BPT), though these typically don't apply to sole proprietorships with income solely from services rendered. Staying informed about these nuances is key to responsible financial management. For detailed information on New Hampshire business taxes, please visit the New Hampshire Department of Revenue Administration: https://www.revenue.nh.gov/

Key Tax Deductions for Home-Based Virtual Assistants

• Home Office Deduction: The home office deduction allows Virtual Assistants to deduct expenses related to the portion of their home exclusively and regularly used for business. “Exclusive use” means that space is only used for work; a dining room table used for both meals and client calls doesn’t qualify. “Regular use” implies consistent and frequent use for business activities. Two methods exist: the simplified option, offering a standard deduction of $5 per square foot (up to 300 square feet), and the actual expense method, requiring detailed calculations of mortgage interest, rent, utilities, and depreciation.
• Hardware & Software: The cost of essential hardware, such as computers, webcams, and printers, is generally deductible. Software subscriptions vital to your business – including programs like Adobe Creative Cloud, project management tools, or website hosting – are also deductible expenses.
• Internet & Phone Bill: If you use your internet and phone for both personal and business purposes, you can deduct the percentage attributable to business use. Maintaining a log of business calls and internet usage is recommended to substantiate this deduction.

Note on Mileage: As a predominantly home-based worker, mileage deductions are less common for Virtual Assistants. However, any travel directly related to client meetings, attending industry events, or procuring business supplies can be claimed using the standard mileage rate or actual expenses.

The 15.3% Self-Employment Tax Explained

The 15.3% self-employment tax comprises two components: 12.4% for Social Security and 2.9% for Medicare. This tax is essentially the equivalent of the employer and employee portions of these taxes when working for a traditional employer. It’s calculated on your net earnings – your business income minus allowable business deductions – exceeding $400.