Mandatory Filing Affects Every Resident
Since 2014, all residents of the City of Portsmouth (18 years of age and older) are required to file a city income tax return with the Tax Division on an annual basis, even if no tax is due.
The term “resident” applies to anyone whose permanent legal residence is located within the City of Portsmouth, including anyone temporarily living away from their Portsmouth home, such as college students attending school away from Portsmouth. This includes persons who own their homes as well as those who rent the apartment or home in which they live.
Mandatory filing also applies to persons who in the past did not have to file a return with Portsmouth because they had Portsmouth tax fully withheld from their wages.
Non-residents who have income derived within the City of Portsmouth and for whom the tax is not withheld by their employer must file a Portsmouth City income tax return and pay City income tax.
Permanently retired or permanently disabled persons with only non-taxable income for city purposes (such as social security, pensions, interest, and dividends) may file for a permanent exemption from the mandatory filing requirement by completing the Declaration of Exemption Return.
Active duty military personnel, unemployed persons or persons with no reportable income or loss for the current year may use the Declaration of Exemption Return as their annual return filing with the Tax Division.