Law in the Marketplace: Inside the uncertain I&D Tax Published: 2/13/2021 2:22:13 PM Although New Hampshire boasts that, unlike most other states, it imposes no state income tax on its residents, it does impose an income tax on New Hampshire business owners, and it’s a significant one – namely, the New Hampshire Interest and Dividends Tax (the “I&D Tax”). With exceptions I’ll explain below, this tax applies at a rate of 5% to interest and dividends received by New Hampshire residents from corporations, LLCs and other entities with “transferable shares” — a term I’ll also explain below. There are currently about 55,000 New Hampshire residents who are the owners of single-member LLCs. The question I will address below is whether these individuals are subject to the I&D Tax. As you’ll see, the answer is painfully uncertain; but the path to certainty may also be painful.