Sales Tax Guide for New Hampshire

What Is Taxable in New Hampshire?

New Hampshire is one of the few states without a general sales tax. This means that most tangible personal property and goods sold at retail are not subject to sales tax in New Hampshire. However, there are specific taxes and fees that businesses might need to pay attention to, such as meals and rooms tax, and certain services tax.

If your business is involved in industries where these specific taxes are applicable, you need to collect and remit them appropriately. It’s important for businesses to understand the exceptions and adhere to the state’s tax policies.

Who Needs to Collect Sales Tax?

In New Hampshire, the collection of sales tax is generally not applicable due to the absence of a general sales tax. However, businesses involved in the following might need to collect specific taxes:

• Restaurants and food service providers (meals tax)
• Hotels, motels, and lodging services (rooms tax)
• Rental car companies (rooms and meals tax on vehicle rentals)

Even though there is no broad sales tax obligation, businesses should ensure they comply with existing specific taxes to avoid penalties.

How to Register for Tax Obligations in New Hampshire

In New Hampshire, while there is no general sales tax permit, businesses may need to register for other tax obligations. Here’s how:

1. Identify the specific taxes applicable to your business (e.g., meals and rooms tax).
2. Gather necessary business information such as EIN and business details.
3. Contact the New Hampshire Department of Revenue Administration for registration information.
4. Complete the required registration process to start collecting applicable taxes.

Without addressing these requirements, businesses could face compliance issues. Consult with fiscal experts to make sure you are meeting all necessary obligations.

How to Calculate Specific Taxes in New Hampshire

Calculating specific taxes involves the following:

Step 1:
Determine the applicable tax rate for meals, rooms, or rental services.

Step 2:
Collect the correct tax amount at the point of sale.

Step 3:
Maintain accurate records of transactions subject to these taxes.

While New Hampshire does not impose a broad sales tax, it requires certain specific taxes to be filed monthly or quarterly based on the type and volume of business. Ensure you file these taxes on time to avoid fines.

Common Tax Exemptions in New Hampshire

Given the absence of a general sales tax, New Hampshire’s tax exemptions are typically specific to the regulated taxes like meals and rooms tax. Some potential exemptions may include:

• Sales to federal government entities
• Certain nonprofit entities (may require documentation)
• Specific agricultural or manufacturing machinery

Businesses should be vigilant in understanding what is exempt from these specific taxes and ensure correct filing practices.

FAQs About Taxes in New Hampshire

Common questions about New Hampshire taxes include:

Does New Hampshire have a sales tax? 

No, New Hampshire does not have a general sales tax.

What specific taxes might apply to my business in New Hampshire? 

Businesses may be subject to the meals and rooms tax and certain service taxes, depending on their operations.

How do I handle tax compliance in New Hampshire? 

Understand which specific taxes apply to your business, register if necessary, and maintain accurate records of transactions.

Stay Compliant With doola

Tax compliance in New Hampshire doesn’t have to be complex. By staying informed about which specific taxes apply to your business, you can avoid penalties and operate smoothly.

doola offers guidance and tools to ensure compliance, supporting businesses with comprehensive solutions, tax advice, and professional bookkeeping services.