Web Developer Taxes in New Hampshire - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for a Web Developer in New Hampshire

Operating as a web developer in the Granite State offers a unique blend of entrepreneurial freedom and a favorable tax climate – though federal obligations remain paramount. New Hampshire’s independent spirit extends to its workforce, with a growing number of professionals choosing the flexibility of freelance work.

Regardless of the state’s tax advantages, all web developers operating as independent contractors are required to report their income to the IRS on Schedule C (Profit or Loss from Business) with Form 1040. Crucially, income exceeding $400 necessitates the payment of self-employment tax, covering both Social Security and Medicare contributions. Accurate record-keeping throughout the year is essential for a smooth tax filing process.

How New Hampshire Handles Gig Worker Taxes

New Hampshire distinguishes itself with a unique tax structure: it has no state income tax. This means web developers won’t be filing a state income tax return based on their earnings. However, this does not exempt them from federal income tax or self-employment tax obligations. New Hampshire’s focus is instead on property taxes and other revenue sources. 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 Interest and Dividends Tax (IDT), though these generally don't apply directly to sole proprietor web developers unless they incorporate. The lack of a state income tax makes New Hampshire particularly attractive for freelancers, but diligent federal tax compliance is still vital. It's important to remember that even without a state income tax form, accurate federal reporting is mandatory. New Hampshire’s economic landscape, heavily influenced by technology and innovation, continues to attract skilled professionals, making understanding these tax nuances even more important. For more 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 Web Developers

• Home Office Deduction: To qualify for the home office deduction, the space must be used exclusively and regularly for business. “Exclusive use” means that portion of your home is used solely for your web development work – it cannot double as a guest room or family space. “Regular use” implies consistent and frequent use for business activities. Taxpayers can choose between the simplified method (a standard rate of $5 per square foot, up to 300 square feet) or the actual expense method, which requires calculating a percentage of mortgage interest, rent, utilities, and other home-related expenses based on the business use of the home.
• Hardware & Software: The cost of essential hardware, such as computers, monitors, and webcams, is generally deductible. Software expenses, including subscriptions to Adobe Creative Cloud, web hosting services, and development tools, are also deductible as business 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. For example, if 60% of your internet usage is for client work, you can deduct 60% of your internet bill.

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

The 15.3% Self-Employment Tax Explained

The 15.3% self-employment tax is comprised of two components: 12.4% for Social Security and 2.9% for Medicare. This tax is essentially the equivalent of the Social Security and Medicare taxes withheld from an employee’s paycheck, but as a self-employed individual, you are responsible for paying both the employer and employee portions.