New Hampshire Sales Tax Guide

New Hampshire does not have a sales tax on sales of goods in the state. However, vendors in New Hampshire must register for other states’ sales taxes and collect taxes on retail sales when required by the other states. New Hampshire also has several excise taxes, such as a tax on lodging and business taxes.

This guide does not fully describe all of New Hampshire’s laws and regulations regarding taxes. Businesses should contact a business attorney or visit the New Hampshire Department of Revenue Administration website to learn more about the rules, regulations, tax laws and tax information associated with their industries and the types of taxes due.

Types of taxes

Since New Hampshire does not have a sales tax rate, the state taxes several services. It also levies two types of taxes on businesses. Businesses should check with the New Hampshire Department of Revenue Administration to ensure they know of all taxes for their industries.

Meals and room rental tax

New Hampshire’s meals and room rental tax is 8.5 percent and is assessed on any facility with sleeping accommodations and restaurants. Business operators collect the tax from patrons. If the establishment is seasonal, it must file a report for each month of the approved season, even if it did not collect taxes.

The meals and room rental tax is due on the 15th day of the month following the month the business collected the taxes. For example, January’s taxes are due on or before February 15.

Motor vehicle rental tax

Any motor vehicle rental business must collect a 9-percent excise tax on vehicle rentals. The tax is due on the 15th of the month following the month taxes were collected. For example, taxes collected in January are due on or before February 15.

Business enterprise tax

The business enterprise tax is .55 percent for taxable periods ending on or after December 31, 2022. The tax is due on gross receipts that exceed $222,000 or if the Enterprise Value Tax Base is greater than $111,000.

Business enterprise tax due dates

  • Partnership returns are due on the 15th day of the third month following the end of the taxable period.
  • Proprietorship, corporate, and fiduciary tax returns are due on the 15th day of the fourth month following the end of the taxable period.
  • Nonprofits are due on the 15th day of the fifth month following the end of the taxable period.

Business taxpayers must make estimated payments if the tax liability is greater than $260. The estimated payments are 25 percent of the expected amount due and are due on the 15th day of the fourth, sixth, ninth, and twelfth month of the taxable period.

Business profits tax

Any entity doing business in New Hampshire must pay a business profits tax. The tax is 7.6 percent for periods ending on or after December 31, 2022. However, if a business has less than $92,000 gross business income, it does not have to file a return.

Business profits tax due dates

  • Partnership returns are due on the 15th day of the third month following the end of the taxable period.
  • Corporate, proprietorship, and fiduciary returns are due on the 15th day of the fourth month following the end of the taxable period.
  • Nonprofit returns are due on the 15th day of the fifth month following the end of the taxable period.

If the business estimated tax liability is expected to exceed $200, the state requires the business to pay estimated payments of 25 percent of the estimated tax on the 15th day of the fourth, sixth, ninth, and twelfth months of the taxable period.

Communication services tax

Two-way communication services in New Hampshire have a 7-percent tax. Two-way communication providers collect the tax from their consumers. Retailers of VoIP and prepaid wireless are also subject to the tax. However, if the place of primary use is not in New Hampshire, the carrier does not charge the tax.

The tax returns are due on or before the 15th day of the month after the business collects the taxes. For example, taxes collected during January are paid on or before February 15.

Electricity consumption tax

Electric companies must collect a tax of $0.00055 per kilowatt-hour of electricity consumed. Consumers who generate their own power must file a tax return to pay the tax on their own behalf. Returns are due on the 15th day of the second month following the month the electricity was consumed.

Gravel tax

The gravel tax, also known as the excavation tax, is charged at $0.02 per cubic yard of earth excavated. The business collects the tax from the property owner. If a person is excavating his own property and does not remove more than 1,000 cubic yards and does not sell the excavated earth commercially, are exempt under “Incidental excavations, RSA 155-E:2-a, I, (a) & (b). However, if the owner removes more than 1,000 cubic yards, he must pay the tax, whether he gives the earth away or sells it.

Medicaid enhancement tax

The Medicaid enhancement tax is a levy on “net patient services revenue” for general hospitals and special hospitals for rehabilitation that are required to be licensed under RSA 151. The hospitals provide inpatient and outpatient services. The tax does not include government facilities. The rate is 5.4 percent.

The tax period runs from July 1 through June 30. The entire amount due is due on or before April 15 in the taxable period.

Timber tax

New Hampshire taxes timber at 10 percent of the stumpage value at the time the timber is cut. Exemptions include:

  • Christmas trees.
  • Sugar orchards.
  • Shade and ornamental trees.
  • Nursery stock.
  • Firewood for manufacturing maple syrup.
  • 20 cords of firewood for domestic heating.
  • 10,000 board feet of saw logs for personal use by the landowner.

Landowners must obtain an Intent to Cut form to begin cutting. If the landowner changes his mind and decides not to cut, he still needs to file a Report of Cut.

Tobacco tax

New Hampshire has a tobacco tax on tobacco products with the exception of hand-rolled premium cigars. The taxes are as follows:

  • Pack of 20 cigarettes: $1.78.
  • Pack of 25 cigarettes: $2.23.
  • Closed-system e-cigarettes: $0.30 per milliliter on the volume of the liquid or other substance containing nicotine.
  • Open-system e-cigarettes: 8 percent of the wholesale sales price of the container of liquid or other substance containing nicotine.
  • All other tobacco products: 65.03 percent of the wholesale sales price.

While the consumer pays the taxes, the wholesaler or distributor taxes the product. The retailer includes the tax in the cost of the product.

Discretionary taxes (Local sales tax rates)

New Hampshire does not have a state sales tax nor does it collect discretionary sales taxes on tangible personal property in local jurisdictions.

Registering for and filing New Hampshire's taxes

Businesses should register for an account with Granite Tax Collect. Business filers can register new accounts, file tax returns, amend returns, make payments, view balances and correspondence, update information, submit documents, and more.

New Hampshire sales tax holiday

Since New Hampshire does not collect sales and use tax, it does not have a tax holiday.

New Hampshire sales tax exemptions

New Hampshire does not collect sales and use taxes; thus, there is no need for exemption certificates.

Remote and marketplace sellers

Remote sellers and marketplace sellers do not have to collect New Hampshire sales tax since the state does not have a sales and use tax. However, remote sellers doing business in New Hampshire most likely have to collect taxes for other states.

Most states have thresholds of $100,000 of gross sales or 200 transactions that business taxpayers must meet before being required to collect and pay sales taxes. However, most businesses collect sales tax regardless of meeting the thresholds as a convenience to their customers.

If the business does not collect the other states’ sales taxes, the consumers must pay use taxes in their states.

FAQs

New Hampshire does not have a sales and use tax.

A business does not need a sales tax exemption certificate or a resale certificate since New Hampshire does not have a sales and use tax.

While it is easier to file and pay taxes electronically, businesses can opt to complete paper tax forms and submit payment through the mail.

Refer the business or person to the New Hampshire Department of Revenue Administration at (603) 230-5030 for clarification of New Hampshire’s tax-free status

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