New Hampshire does not have a statewide sales tax

New Hampshire is one of five states with no sales tax at the point of purchase. You will not pay sales tax when you buy goods or services in New Hampshire stores, online from New Hampshire retailers, or through mail order from New Hampshire businesses. This applies to clothing, groceries, electronics, and most other items.

The state does tax certain services and specific goods. Meals and prepared foods are taxed at 9 percent. Lodging — hotel rooms, motels, and short-term rentals — is taxed at 9 percent. Rental cars are taxed at 9 percent. These are the main exceptions to the no-sales-tax rule.

New Hampshire funds state operations through a 5 percent tax on business profits and an 8.5 percent tax on interest and dividend income, rather than through sales tax revenue.

Key Takeaways

  • New Hampshire has no sales tax on retail purchases of goods or most services.
  • Prepared food and meals are taxed at 9 percent, whether you eat in a restaurant or buy takeout.
  • Hotel rooms, motels, and short-term rental accommodations are taxed at 9 percent.
  • Rental cars are taxed at 9 percent, but car purchases themselves are not subject to sales tax.
  • The state funds government through business profit tax and investment income tax instead of sales tax.

What counts as a taxable meal in New Hampshire

The 9 percent meals and rooms tax applies to food prepared for when ready consumption. This includes restaurant meals, takeout food, food from food trucks, and prepared items from grocery store delis. The tax is added at the point of sale.

Unprepared groceries — raw ingredients you cook at home — are not taxed. Frozen dinners, packaged sandwiches, and other items sold in the grocery store that are not prepared on-site typically are not taxed either, though the line between prepared and unprepared can vary by item. If you are uncertain whether a specific food item will be taxed, ask the cashier before purchase.

Lodging and short-term rental tax

The 9 percent tax on lodging applies to hotel rooms, motel stays, and short-term rentals of residential property. A short-term rental is generally defined as a stay of fewer than 185 consecutive days. The tax is calculated on the nightly room rate and is added to your bill.

Some municipalities in New Hampshire add a local rooms and meals tax on top of the state 9 percent rate. This local tax varies by town and can range from 0 to 15 percent depending on the location. When you book a room or make a reservation, the total tax owed should be shown before you complete the purchase.

Rental car tax and vehicle purchases

Renting a car in New Hampshire is subject to the 9 percent tax. This applies whether you rent from a major company at an airport or from a local rental agency. The tax is calculated on the daily or weekly rental rate.

Buying a car in New Hampshire is not subject to sales tax. However, if you purchase a vehicle in New Hampshire and register it in another state, that state may charge you sales tax or use tax on the purchase price. Check with your home state's motor vehicle department if you are buying out of state.

Services that are and are not taxed

Most services in New Hampshire are not subject to sales tax. This includes haircuts, repairs, professional services like accounting or legal work, and personal services. However, certain services tied to meals and lodging — such as gratuities added to a restaurant bill or resort fees at a hotel — may be taxed as part of the meals and rooms tax.

Telecommunications services, including cell phone plans and internet service, are not subject to New Hampshire sales tax. Utilities like electricity and natural gas are also not taxed.

How New Hampshire's tax system differs from neighbouring states

Massachusetts, Vermont, and Maine all have sales taxes ranging from 5 to 7 percent on most purchases. If you live in a bordering state and shop in New Hampshire to avoid sales tax, be aware that your home state may charge use tax on items you bring back — a tax owed on purchases made outside the state but used within it. Use tax rates typically match the sales tax rate in your home state.

Connecticut and Rhode Island also have sales taxes. New Hampshire's lack of sales tax makes it unique in the region, which is why some residents of neighbouring states make larger purchases in New Hampshire when possible.

Frequently Asked Questions

Do I pay sales tax on clothes and shoes in New Hampshire?

No. Clothing and footwear are not subject to sales tax in New Hampshire. This applies to all apparel, from everyday wear to formal clothing and athletic shoes.

Is there sales tax on groceries?

Unprepared groceries — raw ingredients, packaged foods you cook at home, and items from the grocery store shelf — are not taxed. Prepared foods from a grocery store deli counter or hot bar are taxed at 9 percent as meals.

What if I buy something online from a New Hampshire company?

You will not pay New Hampshire sales tax on the purchase. However, if the seller ships to your home state, your state may require you to pay sales or use tax on the order. Check your state's tax rules.

Are there any other services taxed besides meals and lodging?

Meals, lodging, and rental cars are the main categories taxed at 9 percent. Most other services — repairs, professional services, personal care — are not taxed in New Hampshire.

Do local towns add their own sales tax?

New Hampshire has no local sales tax. However, some towns add a local rooms and meals tax on top of the state 9 percent rate. This local tax varies by municipality and can range from 0 to 15 percent depending on where you are staying or dining.