New Hampshire has no statewide sales tax
New Hampshire does not charge a sales tax on purchases at the point of sale. This applies to most goods and services you buy in stores, online, or from businesses within the state. If you live in New Hampshire or are visiting, you will not see a sales tax added to your receipt the way you would in most other states.
However, New Hampshire does tax certain specific categories of spending. The state charges a meals and rooms tax of 9 percent on restaurant food and lodging (hotel stays, short-term rentals). Some cities and towns add a local tax on top of this. A few other narrow categories — like rental cars and certain services — also carry taxes. But everyday purchases like groceries, clothing, and household goods have no sales tax.
Key Takeaways
- New Hampshire has no statewide sales tax on retail goods or most services.
- Restaurant meals and hotel rooms are taxed at 9 percent statewide, plus any local tax your city or town adds.
- Groceries, clothing, and most other everyday purchases are not taxed.
- Some cities and towns add their own local tax on meals and rooms, so the total rate varies by location.
What is taxed in New Hampshire
The meals and rooms tax is the main tax you will encounter. It applies to prepared food (restaurant meals, takeout, catering) and lodging. The state rate is 9 percent. On top of that, individual towns and cities can add a local meals and rooms tax ranging from 0 to 4 percent, depending on where you are. So if you eat at a restaurant in a town with a 3 percent local tax, your total tax will be 12 percent.
Rental cars are taxed at 9 percent. Some services — like landscaping, cleaning, and certain repairs — may be subject to tax depending on how they are classified. Telecommunications services (phone, internet, cable) are taxed. Alcohol purchased for off-premises consumption (liquor stores, grocery stores) is not subject to sales tax, but it is subject to state excise taxes that are built into the price.
Groceries and food bought at supermarkets for home consumption are not taxed. Clothing and footwear are not taxed. Prescription medications are not taxed. Most other retail goods — furniture, electronics, appliances, books — are not taxed.
Meals and rooms tax rates by location
The state meals and rooms tax is 9 percent everywhere in New Hampshire. But many towns and cities add a local tax on top of this. The local rate varies widely.
| Location Type | State Tax | Local Tax Range | Total Range |
|---|---|---|---|
| Most towns and cities | 9% | 0% to 4% | 9% to 13% |
| Towns with no local tax | 9% | 0% | 9% |
| Towns with maximum local tax | 9% | 4% | 13% |
To find the exact rate where you are eating or staying, contact the town or city clerk's office, or ask the restaurant or hotel directly. Many hospitality businesses post the local rate on their websites or menus.
How the lack of sales tax affects your budget
Because New Hampshire has no sales tax on goods, the price you see on a store shelf or online is the price you pay. This means your actual cost for clothing, groceries, furniture, and most other items is lower than in states with sales tax. If you buy a $100 item in New Hampshire, you pay $100. In a state with 7 percent sales tax, you would pay $107.
The trade-off is that New Hampshire funds state services through other taxes. The state has a 5 percent tax on interest and dividend income (not wages), and it relies more heavily on property taxes than many other states. So while you save money on purchases, property owners may pay more in property tax than they would elsewhere.
If you are visiting from out of state, the lack of sales tax can make shopping in New Hampshire noticeably cheaper. Some people near the border travel to New Hampshire specifically to buy large items without sales tax. However, if you live in another state and buy something online from a New Hampshire seller, you may still owe sales tax to your own state, depending on that state's rules.
Online purchases and New Hampshire tax rules
If you buy something online from a New Hampshire business and have it shipped to a New Hampshire address, there is no sales tax. If you have it shipped to another state, that state's sales tax rules apply — not New Hampshire's.
If you buy from an out-of-state seller and have it shipped to New Hampshire, the seller's state tax rules may apply, but most online retailers do not charge sales tax unless they have a physical presence in that state. New Hampshire itself does not require you to pay sales tax on items shipped into the state from other places.
Frequently Asked Questions
Do I pay sales tax on groceries in New Hampshire?
No. Groceries and food bought at supermarkets for home consumption are not taxed in New Hampshire. This includes produce, meat, dairy, bread, and packaged foods. The meals and rooms tax applies only to prepared food served at restaurants or catering businesses.
What is the total tax rate for a hotel stay in New Hampshire?
The state charges 9 percent, and your city or town may add 0 to 4 percent on top of that. The total ranges from 9 to 13 percent depending on where the hotel is located. Ask the hotel directly or contact the town clerk to find out the exact rate for your location.
If I buy clothes in New Hampshire and take them to Massachusetts, do I owe tax?
No. Once you purchase an item in New Hampshire without sales tax, you own it. You do not owe tax to another state just because you travel there with it. Sales tax is charged at the point of purchase, not based on where you use the item.
Are prescription medications taxed in New Hampshire?
No. Prescription medications are not subject to sales tax or meals and rooms tax in New Hampshire. Over-the-counter medications and health products may vary depending on how they are classified, so ask your pharmacist if you are unsure about a specific item.
Do I have to pay sales tax on a rental car in New Hampshire?
Yes. Rental cars are taxed at 9 percent in New Hampshire. This is separate from the meals and rooms tax and applies statewide with no local add-on. The tax is usually included in the rental agreement total.