Sales and Use Taxes in New Hampshire

April 13, 2006

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New Hampshire does not impose any form of general sales tax upon the sale or use of tangible personal property within the state. New Hampshire does, however, levy a tax on meals, room occupancies, and motor vehicle rentals.

Meals. In New Hampshire any food or beverage that is prepared and served by a restaurant, whether served for consumption on or off the restaurant premises, is considered to be a meal. Excluded from the term is any food and beverage that is wholly packaged off the premises except for sandwiches, beverages in unsealed containers, and catered or delivered meals. Restaurants include most places where you can buy any food. There are several exceptions. For example, meals served or furnished on the premises of a religious or charitable nonprofit organization are not taxable.

Meals tax rate. The New Hampshire meals tax rate is currently 8 percent.
Sales tax "bracket system." The bracket system may be followed by sellers in computing the sales tax on meals. The 8 percent tax is computed on each dollar and/or fraction of a dollar according to the following table:

Meal Costing	Tax
$0.00 to $0.35	no tax
0.36 to 0.37	$0.03
0.38 to 0.50	0.04
0.51 to 0.62	0.05
0.63 to 0.75	0.06
0.76 to 0.87	0.07
0.88 to 1.00	0.08
over 1.00	8%

Rooms. The rooms tax is imposed on any occupancy in a hotel or any similar establishment offering sleeping accommodations in the State of New Hampshire. The tax rate is currently 8 percent of the rent for each occupancy.

Motor vehicle rental. A motor vehicle rental tax is imposed under the meals and room tax classification at a rate of 8 percent on the gross rental receipts of each rental.

Collection of the tax. The tax on meals, rooms, and vehicle rentals is collected from the purchaser of a meal, room occupant, or vehicle renter by the business owner. The owner may either state the tax as a separate item or include it in the price of the meal, occupancy, or rental.

Licensing requirements. If you are serving taxable meals or renting rooms or motor vehicles, you must obtain a license from the state. The application (Form CD-3) must be submitted to the Department of Revenue Administration.