New Hampshire is one of five states with zero state or local sales tax, making it the go-to shopping destination for residents of neighboring Massachusetts (6.25%), Vermont (6%), and Maine (5.5%). Seabrook, NH — just across the Massachusetts border — is home to multiple big-box retailers catering almost exclusively to Massachusetts shoppers seeking tax-free purchases.
New Hampshire sales tax overview
| Component | 2026 Rate |
|---|---|
| State sales tax | 0.000% |
| Avg local add-on | 0.000% |
| Avg combined | 0.000% |
| Maximum combined | 0.000% |
Note: New Hampshire has no state or local sales tax. Funded by 8.5% Meals & Rooms Tax and Business Profits Tax.
New Hampshire sales tax by city
Combined state + local sales tax rates for major cities in New Hampshire:
| City | Combined Rate |
|---|---|
| Manchester | 0.000% |
| Nashua | 0.000% |
| Concord | 0.000% |
What's exempt in New Hampshire
Groceries
Exempt from New Hampshire state sales tax. Local jurisdictions may still tax.
Clothing & footwear
Exempt from New Hampshire sales tax.
Prescription drugs
Exempt from sales tax (typical across most states).
How New Hampshire sales tax is calculated
Sales tax in New Hampshire is calculated by multiplying the pre-tax purchase price by the applicable combined rate. The formula is simple:
Sales Tax = Purchase Price × 0.000% (avg combined)
Total = Purchase Price + Sales Tax
The exact rate depends on where the purchase occurs — the state base rate (0.000%) plus any local city or county add-ons. New Hampshire does not allow local sales taxes — the rate is uniform statewide at 0.000%.
Quick calculation examples at average rate 0.000%:
$100 item
$0.00 tax
$100.00 total
$250 item
$0.00 tax
$250.00 total
$500 item
$0.00 tax
$500.00 total
$1,000 item
$0.00 tax
$1000.00 total
Additional tax-free items in New Hampshire
Beyond the standard exemptions, New Hampshire also provides sales tax relief on these categories:
Exemptions may have conditions. Always verify with the New Hampshire Department of Revenue for complete rules.
New Hampshire sales tax in context: rates, history, and neighbors
New Hampshire is one of five US states with no state or local sales tax — the others being Alaska, Delaware, Montana, and Oregon. NH also has no broad-based personal income tax (the Interest & Dividends Tax was fully repealed effective January 2025). NH's tax-free retail status makes it a regional shopping destination, particularly for residents of Massachusetts (6.25%), Vermont (6%), and Maine (5.5%). Seabrook, Salem, and Nashua (NH cities along the MA border) host major retail centers built around the no-tax appeal. NH does charge an 8.5% Meals and Rooms Tax on restaurant meals, prepared food, and hotel stays — affecting tourists more than residents. NH funds state government primarily through property taxes (effective rate among top-5 nationally), business taxes, and tourism-related taxes. NH residents shop in NH for major purchases and rely on neighboring states' restaurants/lodging.
Online shopping & New Hampshire sales tax
New Hampshire has no sales tax to collect on any purchases. NH residents shopping online owe no New Hampshire tax. New Hampshire has also legally challenged (unsuccessfully so far) other states' attempts to collect income tax from NH residents who work remotely for companies in those states — a related 'no tax' philosophy.
Use Tax reminder: If you purchase taxable goods online from a seller who does NOT collect New Hampshire sales tax, you technically owe Use Tax — the same rate as sales tax, reportable on your New Hampshire state tax return. Use Tax enforcement on consumers is rare but the obligation exists for significant purchases.
How much New Hampshire sales tax on common purchases?
Using New Hampshire's average combined rate of 0.000%:
| Purchase | Price | Sales Tax | Total |
|---|---|---|---|
| Grocery cart | $150 | Exempt | $150.00 |
| Clothing / shoes | $120 | Exempt | $120.00 |
| Prescription drug | $80 | Exempt | $80.00 |
| Smartphone | $999 | $0.00 | $999.00 |
| Laptop / tablet | $1,299 | $0.00 | $1299.00 |
| New car ($35,000) | $35,000 | $0.00 | $35000.00 |
| Home appliance | $1,500 | $0.00 | $1500.00 |
| Restaurant meal | $60 | $0.00 | $60.00 |
Based on New Hampshire's average combined rate of 0.000%. Exact tax depends on city/county. Use our calculator above for specific locations and amounts.
Collecting sales tax in New Hampshire: business guide
If you sell goods or taxable services to New Hampshire customers, here's what you need to know:
- Registration: Register for a New Hampshire sales tax permit/license through the New Hampshire Department of Revenue before making your first taxable sale. Most states process registrations online within a few days.
- Economic nexus (online sellers): If you have $100,000+ in New Hampshire annual sales or 200+ transactions, you must collect New Hampshire sales tax even without a physical presence in the state — per South Dakota v. Wayfair (2018). The rate is uniform at 0.000% statewide.
- Destination vs origin sourcing: New Hampshire uses destination-based sourcing for most sales — the tax rate where the buyer receives the goods applies. Always use the customer's delivery address to determine the rate.
- Filing frequency: Frequency depends on your New Hampshire sales volume — monthly for high-volume sellers, quarterly or annually for low-volume sellers. Check with the New Hampshire Department of Revenue for your specific filing schedule.
- Marketplace sales: If you sell through Amazon, Etsy, eBay, or similar platforms, the marketplace is required to collect and remit New Hampshire sales tax on your behalf — you don't need to collect it separately on marketplace transactions.
- Resale certificates: Businesses purchasing goods for resale can provide a New Hampshire resale certificate to suppliers to avoid paying sales tax on wholesale purchases. Keep copies of all resale certificates for audits.
Streamlined Sales Tax (SST): New Hampshire is not currently a member of the Streamlined Sales Tax (SST) Agreement — check New Hampshire Department of Revenue for filing specifics.
New Hampshire-specific business compliance details
New Hampshire businesses do not collect a state sales tax — there is none. Most NH retailers have no sales tax registration or compliance burden. Restaurants, hotels, and short-term rentals must register for the Meals and Rooms Tax with the NH Department of Revenue Administration (revenue.nh.gov). Out-of-state businesses selling to NH customers have no NH sales tax obligations. NH businesses selling to other states must comply with those states' economic nexus rules. NH's lack of sales tax simplifies compliance dramatically. The Meals and Rooms Tax filing is monthly. Penalties for M&R tax: 5% of unpaid tax + interest.
New Hampshire sales tax frequently asked questions
Is New Hampshire really 100% sales tax free?
Yes — New Hampshire has absolutely no state or local sales tax on retail goods. Every store, mall, and online purchase delivered to NH is completely free of sales tax. NH does have other taxes: an 8.5% Meals and Rooms Tax (restaurants and hotels), a 9% tax on distributed dividends, and a Business Profits Tax. But for retail shopping — clothes, electronics, furniture, cars, groceries — New Hampshire is completely tax-free.
Why do so many Massachusetts residents shop in New Hampshire?
The 6.25% Massachusetts sales tax savings make NH shopping very attractive for large purchases. Seabrook NH (15 minutes from the MA border on I-95) has become a massive retail destination with big-box stores, outlets, and malls serving MA shoppers. On a $2,000 appliance, a MA resident saves $125. For car purchases, the savings are thousands. NH retailers actively market to MA consumers on tax-free shopping.
How does New Hampshire fund its government without a sales tax?
New Hampshire relies on: property taxes (very high — among the top 5 states), a Meals and Rooms Tax (8.5% on restaurant meals and hotel stays), an 8.5% Business Enterprise Tax and Business Profits Tax, interest and dividends tax (recently repealed), and various fees and licenses. NH residents often pay higher property taxes than neighboring states, partially offsetting the sales and income tax advantage.