New Hampshire has no statewide sales tax

New Hampshire does not charge a sales tax on most purchases. There is no statewide rate, and no local sales taxes either. If you buy something in a New Hampshire store, you pay only the price on the tag — nothing is added at checkout.

This makes New Hampshire one of five U.S. states with no sales tax at all. The others are Alaska, Delaware, Montana, and Oregon. The absence of a sales tax is a deliberate policy choice, not an accident or a temporary measure.

However, New Hampshire does tax some specific goods and services. Understanding what is and is not taxed matters if you live there, work there, or buy things there regularly.

Key Takeaways

  • New Hampshire charges no sales tax on clothing, groceries, household goods, or most retail purchases.
  • The state does tax meals at restaurants, prepared foods, and certain services at rates between 8 and 9 percent.
  • Lodging — hotel rooms, motels, vacation rentals — is taxed at 9 percent statewide, plus any local room tax.
  • Motor vehicles, fuel, and cigarettes have their own specific taxes separate from sales tax.
  • If you buy something online from an out-of-state seller, you typically pay no New Hampshire tax unless the seller has a physical presence in the state.

What is taxed in New Hampshire

New Hampshire's main tax on consumption is the meals and rooms tax, which applies to restaurant food and lodging. The statewide rate is 9 percent on both. Some municipalities add a local room tax on top of that, bringing the total to 10 or 11 percent for hotels and vacation rentals.

Prepared foods — items you buy ready to eat, like deli sandwiches, rotisserie chicken, or bakery items sold warm — are taxed at 8 percent. Raw groceries and uncooked food are not taxed. The line between "prepared" and "unprepared" can be unclear; a cold sandwich from a deli counter may or may not be taxed depending on how it is sold and labeled.

Certain services are also taxed. Telecommunications services, including cell phone plans and internet, are taxed at 8 percent. Rental cars are taxed at 8 percent. Laundry and dry cleaning services are taxed at 8 percent.

What is not taxed in New Hampshire

Clothing and footwear have no sales tax, regardless of price. This includes coats, shoes, socks, hats, and accessories. The exemption applies to new items; used clothing sold in thrift stores is also not taxed.

Groceries — milk, bread, vegetables, meat, cereal, canned goods, frozen foods — are not taxed when you buy them raw or uncooked. Once food is prepared or heated for immediate consumption, the meals tax applies instead.

Household goods, furniture, appliances, books, toys, electronics, and most other retail items carry no sales tax. Prescription medications are not taxed. Over-the-counter medicines and vitamins are also not taxed.

Motor vehicles, fuel, and cigarettes

New Hampshire taxes motor vehicles through a use tax rather than a sales tax. When you register a vehicle in New Hampshire, you pay a one-time tax based on the vehicle's value. The rate varies by vehicle type and age. This applies whether you bought the vehicle in New Hampshire or out of state.

Gasoline and diesel fuel are taxed per gallon, not as a percentage of price. The state fuel tax is currently 24.2 cents per gallon for gasoline and 27.2 cents per gallon for diesel. This tax is built into the pump price you see.

Cigarettes and smokeless tobacco are taxed per unit or per ounce, not as a percentage. The cigarette tax is $1.78 per pack of 20. These taxes are separate from any sales tax and are set by state law.

Online purchases and out-of-state sellers

If you order something online from a company that has no physical location in New Hampshire, you typically do not owe New Hampshire sales tax on that purchase. This is true even if the item would be taxed if you bought it in a New Hampshire store.

However, if the online seller has a warehouse, office, or other physical presence in New Hampshire, they must collect the meals and rooms tax (or other applicable tax) on sales to New Hampshire customers. Large retailers like Amazon now collect these taxes in most states, including New Hampshire, because they have distribution centers there.

If you buy something online and no tax is collected, you are technically responsible for paying a "use tax" to New Hampshire on your own. In practice, this is rarely enforced for individual purchases, but it is the law.

How New Hampshire funds state government without sales tax

New Hampshire relies on other revenue sources instead of a broad sales tax. The state has a business profits tax on corporate income, a business enterprise tax on gross receipts, and a property tax that funds local schools and services. It also collects income tax on dividends and interest, though not on wages.

This funding structure means New Hampshire has higher property taxes than many other states. Homeowners and renters pay more in property tax to make up for the lack of sales tax revenue. The trade-off is intentional: the state prioritizes not taxing purchases over keeping property taxes low.

Frequently Asked Questions

Do I pay sales tax on clothes in New Hampshire?

No. Clothing and footwear are not taxed in New Hampshire, regardless of price or type. This includes new and used items, and applies to all clothing categories — coats, shoes, underwear, accessories, and more.

Is restaurant food taxed in New Hampshire?

Yes. Meals at restaurants, cafes, and food service establishments are taxed at 9 percent statewide. Some municipalities add a local tax on top of that. Takeout food is taxed the same way as food eaten at a table.

What about groceries — are they taxed?

Raw and uncooked groceries are not taxed. Prepared foods — items sold ready to eat or heated for immediate consumption — are taxed at 8 percent. The distinction can be unclear for items like deli sandwiches or bakery goods; ask the cashier if you are unsure.

Do I owe tax if I buy something online from out of state?

Usually not, unless the seller has a physical presence in New Hampshire. Large online retailers now collect tax in most states because they have warehouses there. For smaller sellers with no New Hampshire location, you typically owe no tax at checkout, though technically you may owe a use tax to the state.

How much is the hotel tax in New Hampshire?

The statewide rate is 9 percent. Some towns and cities add a local room tax on top of that, bringing the total to 10 or 11 percent. Check with your specific hotel or municipality for the exact rate in that area.