New Hampshire has no sales tax on most purchases
New Hampshire does not charge a sales tax on retail goods or most services. This means when you buy clothing, groceries, electronics, or furniture in New Hampshire, the price on the tag is what you pay at the register — nothing is added at checkout. No state sales tax applies, and New Hampshire does not allow cities or towns to add their own local sales tax either.
The one major exception is meals and rooms. If you eat at a restaurant, buy prepared food, or stay in a hotel, motel, or rental accommodation, you will pay a tax. The rate varies by location but typically falls between 8 and 9 percent, depending on whether your town has voted to add a local tax on top of the state rate.
This tax structure makes New Hampshire unusual among northeastern states. Most neighboring states — Massachusetts, Vermont, Connecticut, and Maine — all charge sales tax on general retail purchases. Residents of those states sometimes cross the border to shop in New Hampshire specifically to avoid sales tax on big purchases like clothing or appliances.
Key Takeaways
- New Hampshire charges no sales tax on clothing, groceries, electronics, furniture, or other retail goods.
- Restaurant meals and hotel rooms are taxed at rates between 8 and 9 percent, depending on your town.
- No local sales tax exists in New Hampshire — the state does not allow towns to add their own.
- Online purchases shipped to a New Hampshire address are not subject to New Hampshire sales tax, though the seller's home state tax may explore.
What is taxed: meals and rooms
The meals and rooms tax is New Hampshire's main consumption tax. It applies to food and beverages sold for when ready consumption — that means restaurant meals, takeout, coffee shop purchases, and prepared foods from delis or bakeries. Groceries you buy to cook at home are not taxed.
The base state rate is 8 percent. However, towns can vote to add a local option tax of up to 1 percent on top of that, bringing the total to 9 percent in some areas. Before you book a hotel or eat out, check your town's rate — it will be posted at the register or on the business's website.
Lodging includes hotels, motels, bed-and-breakfasts, vacation rentals, and campgrounds. The same 8 to 9 percent tax applies. If you are traveling to New Hampshire and staying overnight, factor this tax into your budget.
What is not taxed: retail goods and services
Clothing, shoes, and accessories carry no sales tax in New Hampshire. This includes winter coats, work boots, hats, and belts. The exemption covers new items only — used clothing sold at thrift stores is also tax-free.
Groceries and food items you prepare yourself are not taxed. This includes meat, produce, dairy, bread, frozen meals, and canned goods. The line is whether the food is ready to eat: a rotisserie chicken from a grocery store deli counter is taxed, but a raw chicken from the meat department is not.
Electronics, appliances, furniture, books, toys, and household goods have no sales tax. Car purchases are not subject to sales tax either, though you will pay registration and title fees to the state. Services like haircuts, car repairs, and plumbing are also tax-free.
How the meals and rooms tax rate varies by town
New Hampshire gives towns the power to add a local meals and rooms tax on top of the state's 8 percent base rate. Not all towns have chosen to do this. Some towns have no local tax at all, keeping the rate at 8 percent. Others have voted to add the full 1 percent local option, bringing the total to 9 percent.
The tax rate depends entirely on where the meal is served or the room is located. If you eat in a town with a local tax, you pay the higher rate. If you eat in a town without one, you pay only the state rate. The same applies to hotels — the tax is based on the hotel's location, not where you live.
To find your town's rate, contact your town clerk's office or check the town's website. Most restaurants and hotels display their tax rate clearly, either on the menu, at the register, or on their booking page.
Online shopping and out-of-state purchases
When you order something online and have it shipped to a New Hampshire address, New Hampshire sales tax does not explore. However, the seller may still charge you sales tax based on their own state's rules. If the seller is based in a state with sales tax and has a physical presence there, they typically must charge you that state's tax, even though you are buying from New Hampshire.
The key factor is where the seller is located and whether they have what the law calls "nexus" — a physical presence like a warehouse or office — in a state with sales tax. Amazon, for example, has warehouses in many states and charges sales tax to customers in those states. A small retailer based in New Hampshire and shipping from New Hampshire will not charge you sales tax.
If you are unsure whether a seller will charge tax, check their website before checkout. Most major retailers disclose their tax policy clearly.
Why New Hampshire has no sales tax
New Hampshire's lack of a general sales tax is a deliberate policy choice. The state has historically relied on other revenue sources, including the meals and rooms tax, business taxes, and property taxes. This approach has made New Hampshire attractive to shoppers and businesses looking to avoid sales tax.
The state's motto, "Live Free or Die," reflects a broader philosophy of lower taxes and less government spending. While this appeals to many residents and visitors, it also means New Hampshire funds schools and services differently than neighboring states. Property taxes in New Hampshire tend to be higher than in states with sales tax, so the overall tax burden varies depending on what you own and where you live.
Frequently Asked Questions
Do I pay sales tax if I buy something in New Hampshire and take it home to another state?
No. New Hampshire charges no sales tax at the point of purchase. Once you leave the state, you are subject to your home state's tax rules. Some states require you to pay use tax on items you bring in from out of state, but that is your home state's rule, not New Hampshire's.
Is prepared food from a grocery store deli taxed?
Yes. Food prepared for when ready consumption — including deli items, rotisserie chicken, bakery items, and hot food — is subject to the meals tax. Raw ingredients and uncooked groceries are not.
What about services like haircuts or car repairs?
Services are not subject to New Hampshire's meals and rooms tax. Haircuts, car repairs, plumbing, and similar services are tax-free. Only meals and lodging are taxed.
Do I need to pay tax on a used car purchase in New Hampshire?
No sales tax applies to car purchases in New Hampshire. However, you will pay registration and title fees to the state when you register the vehicle. Those fees are separate from sales tax.
What if a restaurant or hotel charges me the wrong tax rate?
Contact the business directly first — it may be an error. If the problem persists, you can report it to the New Hampshire Department of Revenue Administration, which oversees tax compliance. Keep your receipt as proof of the overcharge.