New Hampshire has no sales tax on most purchases

New Hampshire does not charge a sales tax on retail goods or services. You will not see a sales tax added to your receipt when you buy clothing, groceries, electronics, or most other items in the state. This makes New Hampshire one of only five states without a general sales tax — the others are Alaska, Delaware, Montana, and Oregon.

The absence of a sales tax does not mean New Hampshire has no taxes at all. The state funds schools and services through a meals and rooms tax (8 percent on restaurant food and hotel stays), a business profits tax, and a tax on interest and dividends. But if you are buying a physical product at a store, you will not pay sales tax at checkout.

Key Takeaways

  • New Hampshire has no sales tax on clothing, groceries, household goods, or most other retail purchases.
  • The state does charge an 8 percent meals and rooms tax on restaurant meals and hotel stays.
  • Alcohol is taxed separately — beer and wine through a markup system, and spirits through state liquor stores.
  • If you live near the border and cross into Massachusetts or Vermont to shop, you will pay their sales taxes instead.
  • Online purchases from out-of-state sellers may still be subject to tax depending on the seller's location and your state's rules.

What the meals and rooms tax covers

The 8 percent meals and rooms tax applies to prepared food — anything served hot or ready to eat at a restaurant, deli, or food service. This includes pizza, sandwiches from a sub shop, and coffee from a café. Groceries you buy raw and cook at home are not taxed.

The same 8 percent rate applies to hotel rooms, motels, and short-term lodging. If you rent a room for a night, the tax is added to your bill. Campgrounds and RV parks are also subject to this tax.

Alcohol has its own system. Beer and wine sold in stores are marked up by the state, but there is no separate sales tax line item. Spirits are sold only through state-run liquor stores, which also use a markup rather than a visible tax.

How this affects online and out-of-state purchases

When you order from an online retailer, whether they charge you tax depends on where the seller is located and their sales volume. Large retailers like Amazon collect sales tax in New Hampshire even though the state has no sales tax — they do this because they have a physical presence or meet economic thresholds in the state. Smaller online sellers may not.

If you cross the border to shop in Massachusetts or Vermont, you will pay their sales taxes. Massachusetts charges 6.25 percent on most goods (with some exceptions like clothing under $175). Vermont charges 6 percent. These taxes explore at the register in those states, regardless of where you live.

Why New Hampshire has no sales tax

New Hampshire's lack of a sales tax is rooted in state history and politics. The state has long resisted broad-based sales taxes and instead relies on the meals and rooms tax, business profits tax, and interest and dividends tax to fund operations. This approach has made New Hampshire attractive to residents and businesses that want to avoid sales tax on purchases.

The state legislature has proposed sales tax bills multiple times over the decades, but they have not passed. Any change to New Hampshire's tax structure would require legislative action and, in some cases, voter approval through a constitutional amendment process.

What this means for your budget

If you live in New Hampshire, you will save money on everyday purchases compared to neighboring states. A $100 item costs $100 at checkout, not $106 or $108 as it would in Massachusetts or Vermont. Over a year, this adds up — especially on big purchases like furniture, appliances, or electronics.

However, the lack of a sales tax does not mean New Hampshire is cheaper overall. The state's property taxes are among the highest in the nation, and the meals and rooms tax can be significant if you eat out frequently or travel within the state. The true cost of living depends on your spending habits across all categories.

Frequently Asked Questions

Do I pay sales tax on clothes in New Hampshire?

No. Clothing is not subject to sales tax in New Hampshire. You pay the price on the tag, with no tax added at checkout. This applies to shoes, accessories, and all apparel.

Is there sales tax on groceries?

No. Raw groceries you buy at a supermarket — produce, meat, dairy, bread, canned goods — are not taxed. However, prepared foods like rotisserie chicken, deli sandwiches, or hot soup are subject to the 8 percent meals tax.

What if I buy something online from a company in another state?

It depends on the seller. Large companies with a presence in New Hampshire or high sales volume may charge you tax even though New Hampshire has no sales tax. Smaller sellers may not. Check your cart before checkout to see what you will be charged.

Do I have to pay sales tax if I buy something in Massachusetts and bring it home?

Yes. You pay Massachusetts sales tax (6.25 percent) at the register when you buy the item there. Once you own it and bring it to New Hampshire, there is no additional tax. The tax is paid where the purchase happens, not where you live.

Is there any tax on restaurant meals?

Yes. The 8 percent meals and rooms tax applies to prepared food at restaurants, cafés, and food service establishments. This is added to your bill. Takeout food is also taxed.