The question of whether New Hampshire has a sales tax is a common inquiry for residents, visitors, and business owners. This article clarifies the state’s position on this tax and explains how it funds public services without one.
New Hampshire’s Stance on General Sales Tax
New Hampshire is one of the few states that does not impose a general, statewide sales tax on goods and services. This is a core part of the state’s fiscal identity, often associated with its “Live Free or Die” motto. The absence of a sales tax means most retail purchases are not taxed at the point of sale, which influences consumer behavior and encourages cross-border shopping from neighboring states.
Specific Taxes on Goods and Services in New Hampshire
New Hampshire levies targeted taxes on specific goods and services to generate revenue. The most prominent is the Meals and Rooms (Rentals) Tax, governed by RSA 78-A. This tax applies to prepared meals, room occupancies, and motor vehicle rentals at a rate of 8.5%, which is paid by the consumer and remitted by the business.1NH Department of Revenue Administration. Meals & Rooms (Rentals) Tax
Other specific levies that contribute to state funds include:
- A tax on tobacco products, enforced under RSA 78.2New Hampshire General Court. Chapter 78 Tobacco Tax
- A tax on beer, wine, and liquor, managed by the New Hampshire Liquor Commission as outlined in RSA 178.3New Hampshire General Court. Chapter 178 Liquor Licenses and Fees
- A Motor Fuels Tax of $0.222 per gallon, under RSA 260.
- A Communications Services Tax of 7% on services like telephone and VoIP, under RSA 82-A.4New Hampshire General Court. Chapter 82-A Communications Services Tax
- A Real Estate Transfer Tax of $0.75 per $100 of the sale price, paid by both the buyer and seller under RSA 78-B.5NH Department of Revenue Administration. Real Estate Transfer Tax
Alternative Revenue Sources for New Hampshire
New Hampshire relies on several other primary sources to fund government operations, with business taxes being a substantial component. The Business Profits Tax (BPT), detailed in RSA 77-A, is levied on the net income of businesses at a rate of 7.5%.6New Hampshire General Court. Chapter 77-A Business Profits Tax For taxable periods beginning in 2025, the BPT filing threshold is a gross income over $109,000.
Another significant source is the Business Enterprise Tax (BET), governed by RSA 77-E. This tax is assessed on a business’s total compensation, interest, and dividends paid, at a rate of 0.55%.7New Hampshire General Court. Chapter 77-E Business Enterprise Tax For 2025, the BET filing threshold applies to enterprises with gross receipts or an enterprise value tax base over $298,000.
Additionally, revenue from state-operated liquor stores and the state lottery provides considerable income. Property taxes, while primarily a local revenue source, are a major part of the overall tax system that funds public education and municipal services.
The Interest and Dividends (I&D) Tax, which was a tax on certain investment income under RSA 77, was officially repealed for tax periods beginning after December 31, 2024.8NH Department of Revenue Administration. Interest & Dividends Tax Repeal
Implications for New Hampshire Residents and Businesses
The state’s tax structure has direct consequences for its residents and businesses. For residents, the most apparent effect is the absence of sales tax on everyday retail purchases, which can result in lower costs for consumer goods compared to surrounding states. This tax-free shopping environment attracts out-of-state visitors, providing a boost to the retail sector.
For businesses, not having to collect and remit a general sales tax can simplify operations and accounting. However, companies are subject to the Business Profits Tax and Business Enterprise Tax. This means that while retail transactions are simpler, businesses must navigate compliance requirements focused on profits and enterprise value.