Does New Hampshire have sales tax?

Does New Hampshire have sales tax? No. The state’s Department of Revenue Administration answers the question in one line: “there is no general sales tax on goods purchased in New Hampshire.” That covers clothes, shoes, electronics, furniture and everything else on a store shelf, and it is why Salem, the first exit over the Massachusetts line, has drawn shoppers for generations. There is one tax you will still see on a receipt: 8.5% on restaurant meals, hotel rooms and car rentals.

Does New Hampshire have sales tax on anything you buy in a store?

Not on goods. New Hampshire adds no general sales tax at the register, so the price on the tag is the price you pay at the Mall at Rockingham Park, at Tuscan Village and in every other shop in town. That holds whatever the item costs. A $40 sweater and a $2,000 sofa are both tax-free at checkout.

Things you can buy in Salem with no New Hampshire tax added:

• Clothing and shoes, at any price
• Phones, laptops, TVs and appliances
• Furniture, mattresses and home goods
• Toys, books, jewelry and gifts
• Grocery staples from the supermarket

The tax you will see: 8.5% on meals, rooms and rentals

New Hampshire’s Meals and Rooms (Rentals) Tax is 8.5%. The DRA says it is assessed on patrons of restaurants and of hotels, or “any facility with sleeping accommodations,” and on motor vehicle rentals. The rate has been 8.5% for taxable periods beginning Oct. 1, 2021; before that it was 9%. The business collects it and sends it to the state, so you will see it as a line on your check or bill.

The details, from the DRA’s own meals and rooms questions and answers:

• Restaurant meals: taxed when the meal costs 36 cents or more. Beer, wine and liquor served by a restaurant are taxed too, even without food.
• Platters and baked goods: party platters are taxable whether they are delivered, picked up or served. Baked goods bought in quantities of fewer than six from a bakery that also sells coffee, sandwiches or other prepared food are taxed.
• Tips: a gratuity that is listed separately and goes to the staff is not taxed.
• Coupons: the tax is figured on the price after the discount.
• Hotel rooms: taxed for stays of fewer than 185 consecutive days. Short-term rentals count, and their ads must show the operator’s meals and rooms license number.
• Car rentals: every charge in the rental agreement is taxed, including airport fees, drop-off fees and under-age fees. Fuel, insurance and damage charges are not, when they are listed separately.

Do Massachusetts residents owe use tax on New Hampshire purchases?

New Hampshire does not tax your purchase, but your home state may. Massachusetts has a use tax. Its Department of Revenue describes it as a 6.25% tax on out-of-state purchases of tangible personal property that are used, stored or consumed in Massachusetts and on which no Massachusetts sales tax, or less than 6.25%, was paid. Unlike sales tax, which the store collects, the buyer generally pays use tax directly to the state.

What that means in practice, according to the state’s individual use tax page and its sales and use tax guide:

• Deadline: individual use tax is due by April 15 of the year after the purchase.
• Where to report it: on the Massachusetts income tax return, Form 1 for residents or Form 1-NR/PY for part-year residents.
• The “safe harbor” option: for items costing less than $1,000, you may report an estimated amount based on your income instead of tracking every receipt. Use tax on any purchase of $1,000 or more is added on top.
• Things Massachusetts doesn’t tax anyway: grocery food and clothing items of $175 or less are exempt from Massachusetts sales and use tax. On a clothing item over $175, tax applies only to the amount above $175.
• The six-month rule: Massachusetts presumes that property bought out of state and brought in within six months is for use there and subject to use tax. The buyer can challenge that presumption.

This is a summary, not tax advice. If you live in Massachusetts and have a question about a specific purchase, the DOR Contact Center is at (617) 887-6367. If you live in another state, check that state’s rules before a big shopping trip.

Big-ticket items: cars, boats and furniture

A car is the purchase where “no sales tax” rarely means no tax. You register a vehicle where you live, and your home state collects its tax then. In Massachusetts, the buyer pays the sales or use tax on a motor vehicle directly to the state. If the vehicle must be titled or registered in Massachusetts, the DOR says you file an Application for Title and Registration (Form RTA) and pay the tax within 10 days of buying, transferring or first using it. When use tax is due on a vehicle bought out of state, it is paid to the Registry of Motor Vehicles.

Boats, snowmobiles and recreational off-highway vehicles run on their own clock. Buy one outside Massachusetts and bring it in within six months for permanent use, and the use tax is due by the 20th day of the following month, on Form ST-6. The DOR’s own everyday example of use tax is furniture bought from an out-of-state seller for a Massachusetts home.

Shopping for something large? Keep the receipt, ask the store about delivery and read your home state’s rules before you buy.

Tips for a tax-free shopping day in Salem

• Shop both districts. The Mall at Rockingham Park and Tuscan Village are both off I-93 Exit 1.
• Budget 8.5% for lunch. The meals tax applies at every restaurant, at the mall and in Tuscan Village alike.
• Staying over? Add 8.5% to the room rate when you compare hotels in Salem.
• Keep your receipts. They show what you paid and where, which helps if your home state asks.
• Plan the holidays. Our Black Friday guide has the key dates for Thanksgiving weekend.

For the stores themselves, start with Shop tax-free. Thinking of making the move yourself? Our guide to moving to Salem, NH covers property taxes and the paperwork.