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.
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 state tax authority 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 NH also has no broad-based personal income tax (the Interest & Dividends Tax was fully repealed effective January 2025).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.
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
New Hampshire has no general statewide sales tax, so there is nothing to register for, collect, or remit at the state level, and no economic-nexus threshold to track for New Hampshire sales. If you sell to customers in other states, you may still owe sales tax there once you meet those states' thresholds, but New Hampshire itself imposes none.
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.