New Hampshire Does Not Charge Sales Tax

New Hampshire is one of five states in the United States with no statewide sales tax. When you buy something in a New Hampshire store or online from a New Hampshire retailer, you will not pay sales tax at checkout. This applies to most goods and services, from groceries to clothing to electronics.

However, the absence of a sales tax does not mean New Hampshire has no taxes at all. The state funds itself through other revenue sources, including a tax on business profits, a tax on dividends and interest income, and various fees. Understanding what is and is not taxed in New Hampshire can help you plan purchases and understand your tax obligations if you live or work there.

Key Takeaways

  • New Hampshire has no statewide sales tax on most goods and services, making it one of only five states without one.
  • Groceries, clothing, and most retail purchases are not subject to sales tax in New Hampshire.
  • Restaurants and prepared foods are taxed at 9 percent, which is New Hampshire's meals and rooms tax.
  • If you buy something online from an out-of-state retailer, you may owe sales tax in your home state, not New Hampshire.
  • New Hampshire taxes business profits and investment income instead of relying on sales tax revenue.

What Is Taxed in New Hampshire

While New Hampshire has no sales tax, certain purchases do trigger a tax called the meals and rooms tax, which is 9 percent. This tax applies to restaurant meals, prepared foods, and lodging at hotels, motels, and short-term rentals. If you order takeout or eat at a restaurant, you will pay this 9 percent tax on top of your bill.

Groceries you buy at a supermarket to cook at home are not subject to this tax. The distinction is whether the food is prepared for when ready consumption. A rotisserie chicken from a grocery store deli counter is taxed; a raw chicken from the meat section is not. Alcoholic beverages are also subject to the meals and rooms tax when ordered at a bar or restaurant.

Lodging includes hotels, motels, bed-and-breakfasts, and vacation rentals. If you book a room for a night, expect the 9 percent tax to appear on your final bill. Some municipalities add a local rooms tax on top of the state rate, so the total can be higher in certain towns.

What Is Not Taxed in New Hampshire

Clothing, shoes, and accessories have no sales tax in New Hampshire. You can buy a winter coat, jeans, or a pair of boots without paying sales tax. This applies whether you shop in person or order online from a New Hampshire retailer.

Groceries and food items for home preparation are not taxed. Milk, bread, vegetables, meat, frozen dinners, and canned goods all avoid the meals and rooms tax. The rule is straightforward: if you are buying food to take home and cook or prepare yourself, there is no tax.

Most other retail goods—furniture, appliances, electronics, books, toys, and household items—are also tax-free. This broad exemption is one reason some people choose to make large purchases in New Hampshire rather than in neighboring states with sales taxes.

How Online Purchases Work

If you buy something online from a New Hampshire retailer and have it shipped to your New Hampshire address, you will not pay sales tax. However, if you order from an out-of-state retailer and have the item shipped to you in New Hampshire, the tax situation depends on where the seller is located and your home state's rules.

Most large online retailers now collect sales tax based on the buyer's shipping address, not the seller's location. If you live in a state with sales tax and order from Amazon, Walmart, or another major retailer, you will typically pay that state's sales tax even if the item ships from New Hampshire. The retailer collects the tax and sends it to your state.

If you live in New Hampshire and order from an out-of-state retailer, you generally will not owe New Hampshire sales tax because New Hampshire has none. However, if you live in another state, you may owe that state's sales tax regardless of where you order from.

Why New Hampshire Has No Sales Tax

New Hampshire's lack of a sales tax is a deliberate policy choice that has been in place for decades. The state instead relies on a business profits tax (taxing corporate income) and a tax on dividends and interest income to fund state operations. This approach means that businesses and investors bear more of the tax burden than consumers do.

The state's motto, "Live Free or Die," reflects a broader philosophy about taxation and government spending. New Hampshire residents and lawmakers have historically resisted broad-based consumption taxes, preferring to fund the state through business and investment income taxes instead.

This policy has made New Hampshire attractive to shoppers from neighboring states like Massachusetts and Vermont, where sales taxes are higher. Some people cross state lines specifically to make large purchases in New Hampshire to avoid sales tax.

Tax Considerations If You Live or Work in New Hampshire

If you are a New Hampshire resident, you will not pay sales tax on purchases within the state. However, you may still owe taxes on other income. New Hampshire taxes interest and dividend income at 5 percent, though this rate is scheduled to phase out over time. Wages and salaries are not taxed in New Hampshire.

If you work in New Hampshire but live in another state, you will not owe New Hampshire income tax on your wages. Your home state may tax your income depending on its rules. Some states tax residents on all income earned anywhere; others only tax income earned within the state.

If you own a business in New Hampshire, you will pay the business profits tax on net income. This is separate from sales tax and applies to the profit your business makes, not the revenue from sales.

Frequently Asked Questions

Do I pay sales tax if I buy something in New Hampshire and bring it home to another state?

No. Sales tax is based on where you buy the item, not where you live. If you purchase something in a New Hampshire store, you will not pay New Hampshire sales tax. However, your home state may require you to report the purchase and pay use tax, though this is rarely enforced for individual purchases.

Are there any exceptions to New Hampshire's no-sales-tax rule?

Yes. The meals and rooms tax of 9 percent applies to restaurant meals, prepared foods, and lodging. Everything else—groceries, clothing, most goods—is tax-free. Some municipalities also charge local property taxes and other fees, but these are separate from sales tax.

If I order something online from a New Hampshire company, will I pay sales tax?

Not if you have it shipped to a New Hampshire address. If you have it shipped to another state, you may owe that state's sales tax depending on the retailer's policies and your state's rules. Most large retailers now collect tax based on the shipping address.

What is the difference between New Hampshire's meals and rooms tax and sales tax?

The meals and rooms tax is a 9 percent tax on prepared food and lodging only. Sales tax is a broader tax on most goods and services. New Hampshire has the meals and rooms tax but no general sales tax on retail goods.

Does New Hampshire tax groceries?

No. Groceries for home preparation—produce, meat, dairy, canned goods, frozen foods—are not taxed. Only prepared foods eaten at restaurants or bought ready-to-eat are subject to the 9 percent meals and rooms tax.