Graphic Designer Taxes in New Hampshire - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Graphic Designer income taxable in New Hampshire?

As a graphic designer operating as an independent contractor (or sole proprietor), your income is taxable at the federal level, but generally not at the state level in New Hampshire. Here's a breakdown:

• Federal Taxes: The IRS requires you to report your graphic design income on Schedule C (Profit or Loss from Business), which is filed with your Form 1040. This form calculates your net profit (income minus expenses). You'll use this net profit to determine your income tax liability.
• New Hampshire Taxes: New Hampshire has a unique tax system. It does not tax earned income like wages or business profits. You will only owe New Hampshire taxes on interest and dividends. Therefore, your graphic design income itself is not subject to New Hampshire state income tax. However, you are still responsible for federal income and self-employment taxes.

Top Tax Write-offs for Graphic Designers

Maximizing your deductions is key to minimizing your tax bill. Here are some common write-offs for graphic designers:

• Software & Subscriptions: Costs for design software like Adobe Creative Cloud (Photoshop, Illustrator, InDesign), font subscriptions, stock photo services, and project management tools are generally fully deductible as business expenses.
• Computer & Equipment: You can deduct the cost of your computer, monitor, printer, scanner, drawing tablet, and other equipment used for your graphic design work. You can either deduct the full cost in the year of purchase (using Section 179 deduction or bonus depreciation – consult with a tax professional for eligibility) or depreciate the cost over several years.
• Home Office Deduction: If you use a portion of your home exclusively and regularly for your graphic design business, you may be able to deduct expenses related to that space, such as a portion of your rent/mortgage, utilities, and home insurance. There's a simplified method available as well.
• Mileage & Transportation: When you drive for business purposes (e.g., client meetings, purchasing supplies), you can deduct mileage. For 2024, the standard mileage rate is 67 cents per mile (verify the final official rate from the IRS). Alternatively, you can deduct actual car expenses (gas, oil, repairs, insurance, depreciation), but mileage is often simpler.

The 15.3% Self-Employment Tax Surprise

Many self-employed individuals are surprised by self-employment tax. When you work for an employer, they pay half of your Social Security and Medicare taxes. As a self-employed graphic designer, you're responsible for both the employer and employee portions. This combined tax is 15.3% (12.4% for Social Security up to the annual wage base, and 2.9% for Medicare). You report this on Schedule SE (Self-Employment Tax). You get to deduct one-half of your self-employment tax from your gross income, which helps reduce your overall tax liability.

Remember, self-employment tax applies to net earnings over $400.

Closing Tip for New Hampshire Residents

While New Hampshire offers a favorable tax environment for earned income, diligent record-keeping is crucial for maximizing your federal deductions and accurately calculating your self-employment tax. Consider using accounting software or working with a tax professional to ensure you're taking advantage of all available tax benefits. Don't hesitate to consult with a qualified tax advisor for personalized guidance based on your specific situation.