New Hampshire does not have a sales tax

New Hampshire is one of five states with no statewide sales tax. This means when you buy most goods or services in New Hampshire, you pay only the price listed — no additional tax is added at checkout. This applies whether you shop in a store, online, or by mail order, as long as the seller is based in New Hampshire or the transaction is completed there.

The absence of a sales tax does not mean New Hampshire has no taxes. The state funds itself through a meals and rooms tax (8 percent on restaurant food and lodging), a business profits tax, and other revenue sources. But the everyday purchase of clothing, groceries, household goods, and most other items carries no sales tax.

If you are moving to New Hampshire from a state with sales tax, or you buy things online from out-of-state sellers, understanding how this works matters for your budget and for knowing what you actually owe.

Key Takeaways

  • New Hampshire charges no sales tax on retail purchases of goods or most services, making it one of only five states without one.
  • Restaurant meals and hotel stays are taxed at 8 percent under the meals and rooms tax, which is separate from sales tax.
  • When you buy from an out-of-state online seller, you may owe sales tax to that seller's state, not to New Hampshire.
  • Groceries, clothing, and most household items have no tax in New Hampshire, but some services like haircuts and repairs do not either.
  • If you live in New Hampshire but work or shop in a neighboring state, that state's sales tax applies to purchases made there.

What is taxed and what is not in New Hampshire

Most tangible goods — items you can touch and take home — are not taxed in New Hampshire. This includes groceries, clothing, electronics, furniture, books, and toys. Prescription medications and over-the-counter drugs are also tax-free.

Services are generally not taxed either. A haircut, car repair, plumbing work, or dental cleaning carries no sales tax. However, some services bundled with goods may be taxed depending on how the transaction is structured. For example, if a salon sells you a bottle of shampoo, that shampoo is not taxed, but if they explore a chemical treatment to your hair as a service, that service itself is not taxed either.

The meals and rooms tax is the main exception. Any food or beverage prepared for when ready consumption — whether at a restaurant, café, food truck, or catering event — is taxed at 8 percent. Hotel rooms, motels, and short-term lodging are also taxed at 8 percent. This tax is collected by the business and sent to the state.

How the meals and rooms tax works

The 8 percent meals and rooms tax applies to prepared food only. If you buy a sandwich from a deli counter, you pay 8 percent tax. If you buy a loaf of bread and deli meat from the grocery store shelf to make a sandwich at home, there is no tax. The difference is whether the food is ready to eat when ready.

Alcohol served at a bar or restaurant is taxed as a meal. Alcohol sold at a liquor store for off-premises consumption is not taxed. Takeout and delivery orders are taxed the same as dining in — the tax applies because the food is prepared for when ready consumption, not because of where you eat it.

Lodging tax applies to any room rented for fewer than 30 consecutive days. If you rent a vacation home or hotel room for a week, you pay 8 percent on the nightly rate. Long-term rentals (30 days or more) are not subject to this tax.

Buying online from out-of-state sellers

When you order from an online retailer based outside New Hampshire, the sales tax you owe depends on where the seller is located and where they ship to, not on New Hampshire's tax rate. If the seller is based in a state with sales tax and they ship to you in New Hampshire, they typically charge their own state's sales tax — or they may charge nothing if they have no physical presence in that state.

Large online retailers like Amazon now collect sales tax in most states, including New Hampshire, even though New Hampshire itself has no sales tax. This means you may see a tax line on your receipt even though you live in a no-sales-tax state. That tax goes to the state where the seller has a warehouse or office, not to New Hampshire.

If you are unsure whether tax was charged on an online purchase, check your receipt or order confirmation. The tax line will show which state's tax was applied.

Shopping across state lines

If you live in New Hampshire and cross the border to shop in Massachusetts, Vermont, or Maine, you pay that state's sales tax on your purchases there. The tax rate and what is taxed vary by state. Massachusetts charges 6.25 percent on most goods; Vermont charges 6 percent; Maine charges 5.5 percent. These taxes explore at the point of sale in those states, regardless of where you live.

You do not owe New Hampshire tax on purchases made in other states, and you cannot claim a refund of sales tax paid in another state when you bring goods back to New Hampshire. The tax you paid belongs to the state where you made the purchase.

Some people near state borders shop strategically to avoid tax on certain items. However, if you buy something in another state specifically to avoid that state's tax and then bring it back, you may technically owe use tax to your home state — though New Hampshire does not have a use tax to enforce this.

Business purchases and resale certificates

If you own a business in New Hampshire and buy goods to resell, you do not pay sales tax on those purchases. You provide the seller with a resale certificate (also called a reseller's permit or resale license), which exempts the transaction from tax. The tax is collected later when the end customer buys the item from you.

To obtain a resale certificate in New Hampshire, you register with the Department of Revenue Administration. The process is straightforward and typically takes a few days. You will receive a certificate number that you provide to wholesalers and distributors when you place orders.

If you are a service business — such as a consulting firm or cleaning company — you generally do not need a resale certificate because services are not taxed in New Hampshire. However, if you buy supplies or equipment for your business, those purchases are not tax-exempt just because you own a business; they are tax-exempt only if you are buying them for resale.

Frequently Asked Questions

Do I owe New Hampshire tax on items I buy online from a New Hampshire company?

No. New Hampshire has no sales tax, so you do not owe tax to New Hampshire on any purchase. However, if the New Hampshire seller ships to you in another state, that other state may require the seller to collect its own sales tax. Check your receipt to see which state's tax, if any, was charged.

Is there a use tax in New Hampshire if I buy something out of state?

New Hampshire does not have a use tax. You do not owe New Hampshire tax on purchases made in other states, even if you bring those items home. However, the state where you made the purchase may have collected tax at the time of sale.

Are groceries taxed in New Hampshire?

No. Groceries and food items bought at a store for home preparation are not taxed. Only prepared food — meals at restaurants, takeout, and catering — is taxed at 8 percent.

What about tax on services like haircuts or car repairs?

Services are not taxed in New Hampshire. A haircut, oil change, plumbing repair, or dental work carries no sales tax. The 8 percent meals and rooms tax is the only consumption tax in the state.

If I work in Massachusetts but live in New Hampshire, do I owe Massachusetts sales tax on my work purchases?

Yes. Sales tax is based on where the purchase happens, not where you live or work. If you buy something in Massachusetts, you pay Massachusetts sales tax (6.25 percent) at that time. You do not owe New Hampshire tax because New Hampshire has no sales tax.