New Hampshire has no statewide sales tax

New Hampshire is one of five states with no general sales tax. You will not pay a sales tax on most purchases at retail stores, restaurants, or online retailers shipping to New Hampshire addresses. This applies to clothing, groceries, electronics, and most other goods.

However, New Hampshire does tax certain specific items and services. The state imposes a meals and rooms tax of 9% on prepared food and lodging. Some counties and municipalities add local tax on top of the state rate. If you live in New Hampshire or do business there, you need to know which purchases trigger this tax and which do not.

Key Takeaways

  • New Hampshire has no general sales tax on retail purchases, groceries, or most goods.
  • Prepared meals and restaurant food are taxed at 9% statewide, plus any local tax your county or city adds.
  • Hotel rooms, motels, and short-term lodging are taxed at 9% statewide, plus local additions.
  • Groceries and unprepared food are not taxed, but hot food from a deli counter or restaurant is.
  • If you run a business in New Hampshire, you must register with the Department of Revenue Administration and collect meals and rooms tax on taxable transactions.

What the 9% meals and rooms tax covers

The 9% state tax applies to any prepared food sold for when ready consumption. This includes restaurant meals, takeout orders, food from a deli or bakery counter, and catered events. It also covers beverages sold with meals, including alcohol at bars and restaurants.

Lodging is taxed the same way. Any room rented for fewer than 185 consecutive days is subject to the 9% tax. This covers hotels, motels, bed-and-breakfasts, vacation rentals, and short-term stays. Long-term rentals (185 days or more) are not taxed.

Some counties and cities add their own local tax on top of the 9%. Rockingham County, for example, adds 1%, bringing the total to 10% in some municipalities. Check your specific town or county for the local rate before you assume the tax is 9% everywhere in the state.

What is not taxed in New Hampshire

Groceries and unprepared food are not subject to the meals and rooms tax. If you buy raw ingredients, packaged foods, frozen meals you take home to cook, or produce from a supermarket, there is no tax. The line between taxable and non-taxable depends on whether the food is ready to eat.

Clothing and footwear are not taxed in New Hampshire. This includes children's clothing, work uniforms, and accessories. Medical devices and prescription medications are also not taxed. Most services—haircuts, car repairs, legal information—are not subject to sales tax either.

Gasoline and motor fuel are not subject to the meals and rooms tax, though New Hampshire does impose a fuel excise tax that is separate from sales tax. Utilities like electricity and natural gas are not taxed. If you are trying to determine whether a specific item is taxed, the rule is straightforward: if it is not prepared food or lodging, it almost certainly is not taxed.

How local tax rates work in New Hampshire

New Hampshire allows counties and municipalities to add their own meals and rooms tax on top of the 9% state rate. Not all towns do this, and the local rate varies. Some municipalities add nothing; others add 1% or more. You need to know your local rate if you run a restaurant, hotel, or catering business, or if you want to understand the full cost of a meal or hotel stay.

The Department of Revenue Administration publishes a list of local tax rates by municipality. If you are unsure what rate applies to your town, contact your city or town tax assessor's office or check the state revenue department website. Local rates change occasionally, so if you have not checked in a year or two, verify the current rate before you assume it has not changed.

If you own a restaurant or lodging business in New Hampshire

If you operate a restaurant, bar, catering company, hotel, or short-term rental property in New Hampshire, you must register with the Department of Revenue Administration and collect the meals and rooms tax from customers. You are responsible for remitting the tax to the state, usually monthly or quarterly depending on your volume.

You will need a New Hampshire business tax account number to file. Registration is free, but failure to register and collect tax can result in penalties and back taxes. If you are starting a food or lodging business, register before you open. If you already operate a business and have not registered, contact the Department of Revenue Administration when ready.

Keep records of all taxable sales. The state may audit your returns to verify you collected and remitted the correct amount. If you have questions about what counts as prepared food or lodging, the Department of Revenue Administration publishes guidance documents and can answer specific questions about your business.

How New Hampshire's tax system differs from neighbouring states

Massachusetts, Vermont, and Maine all have general sales taxes ranging from 5% to 7%. Connecticut has a 6.35% sales tax. New Hampshire's lack of a general sales tax makes it unusual in New England. This is why some people from neighbouring states travel to New Hampshire to make large purchases—there is no sales tax on clothing, electronics, or other goods.

However, New Hampshire's meals and rooms tax is higher than the general sales tax in some neighbouring states. If you are comparing the total cost of a hotel stay or restaurant meal across state lines, factor in both the state and local tax rates. A 9% meals tax in New Hampshire may be higher than the combined state and local sales tax in a neighbouring state, depending on where you are comparing.

Frequently Asked Questions

Do I pay sales tax on groceries in New Hampshire?

No. Groceries and unprepared food are not taxed. This includes raw ingredients, packaged foods, frozen meals you cook at home, and produce. The tax applies only to prepared food sold ready to eat, such as restaurant meals or food from a deli counter.

Is there tax on online purchases shipped to New Hampshire?

Most online retailers do not charge sales tax on items shipped to New Hampshire because the state has no general sales tax. However, if you order prepared food for delivery or a hotel stay, the meals and rooms tax applies. Check the retailer's tax policy if you are unsure.

What counts as prepared food for tax purposes?

Prepared food is any food ready to eat or heated for consumption. This includes restaurant meals, takeout, food from a deli or bakery counter, and catered events. Unprepared groceries—raw meat, vegetables, bread you buy to take home—are not taxed, even if you buy them at a restaurant or deli.

Do I have to pay meals tax on takeout?

Yes. Takeout food is subject to the 9% meals tax plus any local tax. It does not matter whether you eat it at the restaurant or take it home. The tax applies to any prepared food sold for when ready consumption.

What is the meals and rooms tax rate in my town?

The state rate is 9%, but your town or county may add local tax on top. Contact your city or town tax assessor's office or check the Department of Revenue Administration website for your specific municipality's rate.