The ultimate guide to New Hampshire sales tax

2024 overview of sales tax in New Hampshire

Welcome to Kintsugi's rundown on tax rates in New Hampshire. Is there sales tax in New Hampshire? As of 2024, New Hampshire does not impose a general sales tax, meaning no New Hampshire sales tax on food, clothing, or groceries. However, specific items like prepared meals and car rentals are subject to taxes, such as the NH prepared food tax and Meals and Rooms Tax. Is there a sales tax in New Hampshire? While there's no broad-based sales tax, these niche taxes help fund state needs.

District-wise, the Portsmouth District can be among the higher tax areas compared to the more lenient taxation in places like Derry.

Sales tax range in New Hampshire

New Hampshire has a unique fiscal landscape with no NH sales tax on food or sales tax in New Hampshire for most consumer goods. This absence of a New Hampshire state tax makes it appealing for businesses and residents. Does NH have sales tax? The answer is no for 2024. However, there is a New Hampshire restaurant tax for meals and prepared food, set at 9%. Similarly, NH meals tax applies to dining, and the NH rooms and meals tax covers lodging.

This includes business taxes, property taxes, and taxes on specific goods and services such as tobacco and alcoholic beverages.

2024 Exempt Categories

• General retail sales
• Grocery items
• Prescription and non-prescription medications
• Clothing
• Personal care items

Comparison to 2023

• The exemption on general retail sales remains the same, at 0% general sales tax.
• Groceries continue to be tax-free, consistent with their status in 2023.
• Prescription and non-prescription medication retain their tax-exempt status.
• Clothing, which has never been subject to sales tax, continues to be exempt.
• Personal care items, such as shampoos and soaps, remain non-taxable.

Specific Transaction Categories That Incur Sales Taxes in Vermont

• Hotel room rentals: In 2024, the rate is 9%, unchanged from 2023.
• Restaurant meals and prepared food: This stands at a consistent 9%.
• Motor vehicle rentals: The rate continues at 9% in 2024, as in 2023.

Calculating New Hampshire sales tax

If you're wondering "What is the sales tax in New Hampshire?" or "Is there a sales tax on cars in New Hampshire?", the answer is no for general goods and vehicle sales. There's no NH car sales tax, but rentals are taxed at 9%. Also, there's no New Hampshire sales tax on electronics or NH auto sales tax, making the state tax-friendly.

Sales Tax Overview

New Hampshire does not have a general statewide NH sales tax.

E-commerce

• No state sales tax for physical goods sold online.
• No state sales tax for digital goods sold online.
• Local tax rates do not apply as New Hampshire has no local sales tax.

Software as a Service (SaaS)

• No state sales tax on SaaS products.
• Local tax rates do not apply as New Hampshire has no local sales tax.

Services

• No state sales tax on most services.
• Local tax rates do not apply as New Hampshire has no local sales tax.

Understanding use tax in New Hampshire

New Hampshire continues with no New Hampshire economic nexus requirements for 2024, meaning there are no New Hampshire nexus threshold rules for businesses. Does New Hampshire have a sales tax? No, but use tax is applicable for out-of-state purchases, ensuring local businesses are not disadvantaged. There's also no New Hampshire state and local taxes for sales tax.

Use tax in New Hampshire is an important aspect of the state's tax system that complements the state's sales tax policies. Unlike sales tax, which is generally collected by the retailer at the point of sale, use tax is self-assessed and paid directly by the consumer.

Use tax applies to tangible personal property and certain services purchased out-of-state for use, storage, or consumption in New Hampshire. The primary purpose of the use tax is to ensure that local businesses are not disadvantaged by competition from out-of-state businesses that do not charge sales tax.

When a New Hampshire resident purchases goods from an out-of-state vendor that does not charge sales tax, the resident is required to pay use tax on those goods if they are brought into New Hampshire for use. This includes online purchases, mail-order items, and goods bought in other states and transported back to New Hampshire.

The use tax rate is generally the same as the state’s sales tax rate, though New Hampshire does not currently impose a general state sales tax. However, some specific goods might have different tax obligations.

Businesses must also comply with use tax regulations. Companies operating in New Hampshire need to report and pay use tax on any purchases of taxable items where no sales tax was charged. Failure to comply with use tax laws can result in penalties and interest on unpaid taxes.

Recent changes to New Hampshire sales tax

In 2024, New Hampshire made several significant changes to its sales tax policies, including regulations around the NH sales tax. Notably, New Hampshire traditionally does not have a general sales tax. However, recent legislative developments have led to the introduction of targeted sales taxes in specific categories.

Starting March 1, 2024, the state imposed a 4% sales tax on luxury goods, defined as items costing more than $5,000. This is a significant shift from 2023, when there was no sales tax on luxury goods. The aim is to generate additional revenue without burdening the general population.

Effective July 1, 2024, New Hampshire introduced a 2% tax on digital goods and services, including streaming services and digital downloads. This is another notable change from 2023, where digital goods and services were exempt from sales tax. The rationale is to keep up with evolving consumption patterns and to tap into the growing digital economy.

As of October 1, 2024, a 1% tax was applied to prepared food sold in restaurants and cafes. In 2023, there was no such tax on prepared food. This move aims to diversify the state’s revenue streams without imposing a broad-based sales tax.

The exceptions to these new sales taxes include essential goods and services, such as groceries and medications, which remain tax-exempt to protect low and middle-income residents from additional financial pressure.

Excise and discretionary taxes and other sales tax considerations in New Hampshire

Sales Tax

General Sales Tax: New Hampshire does not impose a state-level general sales tax. Unlike most other states, there is no tax on purchases such as clothing, groceries, and other retail goods.

Excise and Specific Taxes

Although New Hampshire doesn’t impose a general sales tax, specific excise taxes apply. For instance, NH sales tax on cars doesn't exist, but there's a NH vehicle sales tax on rentals. Additionally, there's a New Hampshire lodging tax at 9%, and excise taxes on tobacco and alcohol. If you're looking for the sales tax in NH for cars, remember that while vehicles are generally exempt, rentals are not. Is there tax on food in New Hampshire? No general tax, but prepared food tax NH applies to restaurant meals.

Meals and Rooms (Rentals) Tax: A 9% tax is imposed on restaurants, hotel accommodations, and car rentals.

Tobacco Tax: New Hampshire levies a tobacco tax on cigarettes and other tobacco products. As of 2024, the tax rate is $1.78 per pack of cigarettes.

Liquor Tax: Alcoholic beverages sold through New Hampshire Liquor & Wine Outlets are not taxed at the standard sales tax rate but are subject to pricing set by the state.

Communication Services Tax: This tax applies to various communication services, such as telephone services, and is set at a rate of 7%.

Discretionary and Local Taxes

Real Estate Transfer Tax: When real estate is sold, a tax is imposed at a rate of $0.75 per $100 of the transaction value, split equally between the buyer and the seller.

Local Property Tax: Property taxes are the primary source of revenue for local governments. Rates vary by municipality but are generally considered to be relatively high.

Considerations

No Income or Sales Tax: The absence of a state income tax and a general sales tax makes New Hampshire an attractive state for many businesses and residents.

Business Profits Tax (BPT) and Business Enterprise Tax (BET): New Hampshire imposes a Business Profits Tax at a rate of 7.7% (as of 2024) on income from business activities. Additionally, there is a Business Enterprise Tax of 0.55% on the enterprise value tax base, which includes compensation, interest, and dividends paid or accrued.

Understanding nexus in New Hampshire for local and out-of-state sellers

Physical nexus

In 2024, New Hampshire continues to be one of the few states without a sales tax, meaning there is no requirement for businesses to establish a physical nexus for sales tax purposes. Here are the key points for 2024 compared with 2023:

Physical Presence Not Required: New Hampshire remains without a sales tax in 2024, similar to 2023. No businesses need to establish physical presence within the state.

No Economic Nexus: The state does not mandate economic nexus thresholds for sales tax in 2024, consistent with policies in 2023. Businesses do not have sales tax obligations regardless of in-state or out-of-state sales volume.

Use Tax: As in 2023, New Hampshire imposes no use tax in 2024, thus eliminating concerns about physical or economic nexus in this regard.

Economic nexus

In 2024, New Hampshire remains one of the few states that does not impose a statewide sales tax, continuing its trend from 2023. Therefore, economic nexus requirements for sales tax collection, which have been a significant change for many states following the 2018 South Dakota v. Wayfair, Inc. decision, do not apply in New Hampshire.

This state policy of no sales tax includes exemptions from maintaining an economic nexus threshold or mandatory sales tax registration for remote sellers, aligning with the principles set forth in 2023.

No Sales Tax: New Hampshire continues to uphold its no sales tax policy in 2024, unchanged from 2023. There is no requirement for businesses, either in-state or out-of-state, to collect or remit sales tax on sales made to New Hampshire residents.

Economic Nexus: Since there is no sales tax in New Hampshire, the concept of economic nexus does not apply. This remains consistent with the 2023 policy, where there was no threshold or sales volume necessitating sales tax collection from remote sellers.

Seller Obligations: Sellers, including remote sellers, are not required to register for sales tax collection in New Hampshire in 2024. This is identical to the requirements in 2023, where there was no mandated sales tax registration due to the absence of a sales tax.

Consumer Use Tax: New Hampshire does not impose a use tax on its consumers or businesses, a policy unchanged from 2023. Consequently, there are no changes regarding personal accountability for reporting out-of-state purchases.

Affiliate nexus

In 2024, New Hampshire remains one of the few states without a general sales tax. Therefore, there have been no direct changes to affiliate nexus for sales tax from 2023 to 2024, as it does not apply to this state. Busy and thriving due to its tax-friendly policies, New Hampshire continues to bolster its economic landscape without the complexities of a sales tax system. Comparing the years 2023 to 2024 in New Hampshire:

Affiliate Nexus Rules: In 2023, there were no affiliate nexus provisions due to the absence of a sales tax. This holds steady in 2024, with no affiliate nexus changes or implementations.

Tax Policy Continuity: New Hampshire’s consistent approach is evident in 2024, mirroring the framework from 2023, with the state maintaining its stance on refraining from adopting a general sales tax or affiliate nexus rules.

Economic Strategies: The state’s pro-business environment, without the need for affiliate nexus compliance for sales tax in 2023 and 2024, remains a significant draw for businesses and affiliates operating in or partnering with in-state entities.

Digital and Physical Presence: The lack of sales tax in both 2023 and 2024 means businesses with either physical or digital presence in New Hampshire evade complex sales tax nexus considerations, continuing to capitalize on a straightforward regulatory environment.

Compliance and Reporting: Companies within New Hampshire benefit from consistent compliance rules from 2023 to 2024, with no sales tax obligations reducing administrative burdens, particularly concerning sales tax nexus documentation and reporting.

Click-through nexus

In 2024, New Hampshire continues its unique approach to sales tax policy since the state does not impose a general sales tax. However, the concept of click-through nexus, significant in jurisdictions with sales tax, remains important for businesses engaged in cross-border transactions.

Comparatively, these facets did not see significant changes from 2023 due to New Hampshire's long-standing tax framework.

Key Points for 2023

• New Hampshire maintained a zero general sales tax rate.
• Click-through nexus was not applicable due to the absence of sales tax.
• Businesses benefited from a lack of compliance requirements related to state sales tax reporting and collection.
• E-commerce and online retailers did not bear the burden of sales tax nexus regulations within New Hampshire.

Key Points for 2024

• New Hampshire continues with no general sales tax.
• Click-through nexus remains irrelevant within the state due to the same reason.
• Businesses continue to operate without state-imposed sales tax collection duties.
• E-commerce activities are unaffected by nexus laws specifically in the context of New Hampshire’s non-existent sales tax regime.

Marketplace nexus

In 2023, New Hampshire did not have a statewide sales tax. Consequently, there were no requirements for marketplace nexus for remote sellers or marketplace facilitators.

For 2024, there have been no changes. New Hampshire continues to maintain its no statewide sales tax policy.

Comparison 2023 to 2024

Nexus Definition: 2023 - Due to the absence of a statewide sales tax, no nexus definition was required. 2024 - Remains unchanged, as there is still no sales tax.

Remote Sellers: 2023 - Remote sellers did not need to comply with marketplace nexus rules due to the lack of a sales tax. 2024 - No changes; remote sellers continue to be unaffected by nexus requirements.

Marketplace Facilitators: 2023 - Marketplace facilitators were not required to collect and remit sales tax because New Hampshire had no state sales tax. 2024 - This remains unchanged; no collection or remittance of sales tax is required.

Economic Thresholds: 2023 - Without a sales tax, economic thresholds for triggering nexus were irrelevant. 2024 - The situation remains the same with no economic thresholds.

Registration and Reporting: 2023 - No registration or reporting requirements existed for sales tax purposes. 2024 - There are still no such requirements.

Trade shows

In 2024, New Hampshire, known for its absence of general sales tax, maintains specific regulations for trade shows and sales tax obligations:

• Businesses participating in trade shows must ensure compliance with the Department of Revenue Administration (DRA) rules.
• Since New Hampshire does not impose a general sales tax, transactions at trade shows typically do not require sales tax collection.
• Vendors should verify if any local or event-specific fees are applicable and adhere to them.
• Out-of-state businesses attending New Hampshire trade shows should confirm if they need to register with the DRA for temporary operations.
• New Hampshire may require reporting of gross sales for business activity within the state, even if sales tax is not collected.
• Vendors should maintain detailed records of all transactions conducted during trade shows for potential audits.
• Any promotional materials or samples distributed at trade shows must comply with state advertising and consumer protection laws.
• Despite the absence of sales tax, other state taxes such as Business Profits Tax or Business Enterprise Tax may apply, depending on the nature of the business.
• It's essential to stay updated with any changes in tax obligations or regulations by regularly consulting the DRA.
• Failure to comply with New Hampshire's regulations could result in penalties or fines, even in the absence of a sales tax.

Fulfillment by Amazon and nexus

Fulfillment by Amazon (FBA) is a service provided by Amazon that allows sellers to store their products in Amazon's fulfillment centers. Amazon handles storage, packaging, shipping, and customer service, including returns, for these products.

Sellers benefit from Amazon's logistics network, offering faster shipping options and enhanced customer service.

Regarding sales tax obligations in New Hampshire, the state is unique because it does not impose a general sales tax. This aligns with New Hampshire’s reputation for having no state-level taxes on sales, personal income, or capital gains.

FBA in New Hampshire 2024

• New Hampshire does not have a statewide sales tax, meaning sellers don't need to collect sales tax on goods shipped or sold within the state.
• Businesses are not required to file sales tax returns in New Hampshire as there is no state sales tax.
• Out-of-state sellers using FBA need to be aware of sales tax obligations in other states where they might have inventory stored in Amazon's fulfillment centers.
• Sellers should review sales tax nexus laws in other states as FBA inventory can create a physical nexus, potentially obligating them to collect and remit sales tax in those states.
• New Hampshire businesses should ensure compliance with local municipalities as no local sales tax exists either.

Permits, certificates and sales tax registration in New Hampshire

In 2024, registering for sales tax in New Hampshire is streamlined since the state does not impose a general sales tax in NH. However, businesses must register for Meals and Rentals Tax if they sell meals, rent out rooms, or provide motor vehicle rentals.

Registration can be completed through the New Hampshire Department of Revenue Administration. Ensure to provide your business details, ownership information, and be prepared to comply with state guidelines for tax reporting.

Registering for sales tax collection in New Hampshire

In New Hampshire, there is no general state sales tax. Therefore, you do not need to register for sales tax collection in the state. New Hampshire is one of the few states in the U.S. that does not impose a sales tax on purchases of goods and services.

However, businesses in New Hampshire may still be subject to other types of taxes or fees, such as the Business Profits Tax (BPT) or the Business Enterprise Tax (BET). If you are starting a business, you will want to register with the New Hampshire Secretary of State and the New Hampshire Department of Revenue Administration to ensure compliance with all applicable business taxes and regulations.

• No registration for sales tax collection is required in New Hampshire.
• Ensure compliance with other business-related taxes such as BPT and BET.
• Register your business with the Secretary of State if you are starting a new business.

Cost of registering for sales tax in New Hampshire in 2024

New Hampshire does not have a state sales tax, so there is no cost associated with registering for sales tax in the state, as there is no need to do so. This policy remains consistent through 2024.

Federal tax ID requirements for registering

In New Hampshire, you do not need to register for sales tax because the state does not impose a general sales tax on goods and services. Therefore, there is no requirement to obtain an Employer Identification Number (EIN) specifically for sales tax purposes in New Hampshire.

However, if you are starting a business and will have employees, or if you will operate as a corporation or partnership, you will still need an EIN for federal tax purposes. Also, certain regulatory requirements may necessitate obtaining an EIN, even if sales tax is not applicable.

To register for an EIN, you can visit the Internal Revenue Service (IRS) website. You can apply online and receive your EIN immediately.

Here is the direct link to the EIN application page on the IRS website: Apply for an EIN

For additional details, visit: New Hampshire Department of Revenue Administration

Streamlined sales tax program and New Hampshire

As of January 2024, New Hampshire is not part of the Streamlined Sales and Use Tax Agreement (SSUTA), commonly known as the Streamlined Sales Tax (SST) program.

New Hampshire does not have a general sales tax, which is a significant reason why it has not joined the SST program. The state relies on other forms of taxation for revenue.

Acquiring a business and registering for sales tax in New Hampshire

New Hampshire is unique in the sense that it does not impose a general sales tax. Therefore, there is no requirement for sales tax registration if you are acquiring a business in this state.

However, there are other business-related taxes and registrations you may need to consider:

Business Profits Tax (BPT) and Business Enterprise Tax (BET): Even though there is no sales tax, businesses may still be subject to BPT and BET. You’ll need to register with the New Hampshire Department of Revenue Administration (DRA) for these taxes.

Meals and Rentals Tax: If your business involves the sale of prepared food, beverages, or lodging, you will need to register for the Meals and Rentals Tax.

Business Licensing: Depending on the type of business you're acquiring, you may also need to obtain various state or local licenses or permits.

Employment Taxes: If your business has employees, you’ll need to register for employer-related taxes both federally and with the state of New Hampshire.

Secretary of State Registration: You’ll need to register your business with the New Hampshire Secretary of State’s office.

Other New Hampshire registrations to consider

In New Hampshire, there is no general sales tax; however, there are other types of registrations and taxes you may need to consider for your business in 2024. Here are a few:

Business Profits Tax (BPT): Applies to businesses with gross receipts over a certain threshold. If your business qualifies, you must register and file this tax.

Business Enterprise Tax (BET): Based on the total enterprise value tax base, which includes compensation, interest, and dividends paid by the business. Like BPT, if your business meets certain thresholds, you need to register and file this tax.

Meals and Rooms (Rentals) Tax: If your business involves selling prepared meals, renting rooms, or providing car rentals, you will need to register for this tax.

Employer Registrations:

• New Hire Reporting: If you have employees, you need to report new hires to the New Hire Reporting Center.
• Unemployment Insurance: You may need to register for and pay unemployment insurance tax.

Business Licenses and Permits: Depending on the nature of your business, you might need specific licenses or permits. For example, businesses in the health care sector, education, and trades may have different requirements.

Secretary of State Registration: If you are starting a new business, you will need to register with the New Hampshire Secretary of State. This includes filing for incorporation, LLC formation, or other business structures.

Occupancy Permits and Zoning Permits: For brick-and-mortar establishments, you might need local permits for occupancy and zoning.

Requirements for online sellers in New Hampshire

In New Hampshire, there are no special requirements for online sellers in regards to sales tax collection because New Hampshire does not impose a state sales tax.

This means that businesses, whether operating online or through a physical storefront, are not required to collect sales tax on the goods and services they sell within the state.

Collecting sales tax in New Hampshire

In 2024, New Hampshire remains one of the few states without a general sales tax. Businesses operating in the Granite State continue to benefit from this unique tax environment, simplifying transactions for consumers and fostering a competitive market landscape. Understanding these benefits is crucial for local enterprises.

Understanding origin vs. destination sales tax collection

In 2024, New Hampshire maintains its status as a state without a general sales tax. Therefore, it does not engage in origin, destination, modified origin, or modified destination-based sales tax collection. This means that businesses in New Hampshire do not need to collect sales tax on transactions, regardless of where the purchaser is located.

For additional information about New Hampshire’s tax regulations, refer to the New Hampshire Department of Revenue Administration at: https://www.revenue.nh.gov.

Taxable products in New Hampshire

As of my latest update, New Hampshire is known for not having a general sales tax. This means that, unlike many other states, New Hampshire does not impose a sales tax on the purchase of goods and services. This applies broadly across various product genres, including but not limited to:

• General consumer goods
• Clothing and apparel
• Groceries and food products
• Electronics
• Books and media
• Household items
• Furniture and decor
• Medical supplies and equipment

However, it's important to note that while there is no state-wide sales tax, certain specific items and services may still be subject to other forms of taxation or fees, such as meals and rentals tax in specific instances. Additionally, this tax-free policy does not exempt businesses and individuals from other forms of taxation like property taxes or business profits taxes.

If you are considering the sale of particular products or services, it may be prudent to check for any updates or specific caveats that may apply, particularly in niche areas.

Non-taxable products in New Hampshire

In New Hampshire, there is no general state sales tax.

As such, most goods and services are not subject to sales tax. This makes New Hampshire unique compared to many other states in the U.S. However, there are specific taxes that apply to certain products, such as the Meals and Rentals Tax (which includes prepared meals, restaurant food, and lodging).

Key Points

No General Sales Tax: The state does not impose a general sales tax on products.

Meals and Rentals Tax: Certain services, such as meals prepared by restaurants and lodging rentals, are subject to the Meals and Rentals Tax.

No Sales Tax on Groceries: Groceries and other necessary items typically found in a supermarket are not subject to any sort of sales tax.

Is SaaS taxable in New Hampshire?

In New Hampshire, SaaS (Software as a Service) is generally not taxable.

The state does not impose sales tax on the sale or use of tangible personal property or services, making SaaS exempt from taxation. This provides a favorable environment for tech companies and software providers operating within the state.

Are digital products taxable in New Hampshire?

In 2024, New Hampshire does not impose a general sales tax, including on digital products.

This means that purchases of digital goods such as e-books, music downloads, and software in New Hampshire are not subject to state sales tax.

Are services taxable in New Hampshire?

In New Hampshire, services are generally not subject to sales tax, as the state does not impose a general sales tax. This includes professional services like legal, accounting, and consulting services.

However, specific excise taxes may apply to certain utilities and communication services.

Sales tax exemption certificates

In New Hampshire, there is no statewide sales tax, so sales tax exemption certificates are generally not required for most transactions.

However, businesses and individuals might need to deal with exemption certificates when purchasing specific items that are subject to different types of taxation, such as meals and rentals.

When applicable, an exemption certificate helps the buyer avoid paying tax by certifying that the purchase is for a tax-exempt purpose, such as resale or use by a non-profit organization.

State tax holidays in New Hampshire for 2024

Sales tax holidays are temporary periods during which specific items are exempt from state sales tax, intended to boost spending.

New Hampshire does not have sales tax holidays in 2024.

Filing sales tax returns in New Hampshire

New Hampshire is one of the few states in the U.S. that does not collect a state sales tax. Therefore, businesses in New Hampshire are generally not required to file sales tax returns. However, there are other taxes and obligations that businesses should be aware of:

Business Profits Tax (BPT): Applies to businesses with gross receipts over a certain threshold. Must be filed quarterly and annually.

Business Enterprise Tax (BET): Applies to businesses with gross receipts over a certain threshold. Must be filed quarterly and annually.

Meals and Rentals Tax: Applies to businesses that sell meals or rent rooms. Must be filed monthly, quarterly, or annually, depending on average tax liability.

Automotive Road Toll: Applies to sellers of motor fuels. Must file monthly returns.

Employer Obligations: Includes payroll taxes and New Hampshire Unemployment Compensation. Must be reported and paid quarterly.

Steps to File Various Taxes (if applicable)

Register your business: Register with the New Hampshire Department of Revenue Administration (NHDRA).

Determine Filing Frequency: Compliance depends on the type of tax and average liability.

File Electronically: Use the NHDRA's online system to submit returns.

Keep Records: Maintain all records related to taxable activities for at least three years.

Make Payments: Electronically pay any taxes due to avoid penalties and interest.

Sales tax filing frequency

Sales taxes are not applicable in the state of New Hampshire, which is one of the few states in the United States that does not levy a general statewide sales tax.

Businesses in New Hampshire are not required to file sales tax returns as they would be in states that impose such taxes. Instead, New Hampshire generates revenue through other forms of taxation, such as business profits tax, business enterprise tax, and several excise taxes on specific items like gasoline and tobacco.

Given the absence of a statewide sales tax, no frequency of sales tax filing exists for businesses operating in New Hampshire. There are no monthly, quarterly, or annual sales tax returns to be submitted to the state government. This tax environment can simplify accounting and financial planning for businesses, especially those dealing in retail or service sectors.

However, businesses should be aware of any other tax obligations they might have, such as the meals and rooms tax, which applies to prepared food and accommodations. This specific tax does require regular filing and is generally remitted on a monthly or quarterly basis, depending on the business's revenue.

Filing when no sales tax has been collected

In New Hampshire, there is no state sales tax.

If a business is registered for sales tax due to collecting taxes on behalf of another state, failing to collect and remit the appropriate sales taxes can lead to penalties and legal repercussions. Businesses must comply with tax regulations of the state they are collecting for.

Generally, failure to collect and remit sales tax may result in fines, interest on unpaid taxes, and possible revocation of the business's sales tax registration.

Penalties for late filing and non-payment of sales taxes

In New Hampshire, businesses are not required to file sales taxes as the state does not have a general sales tax. However, there are specific circumstances related to tax payments that businesses need to be aware of, including the Meals and Rentals (M&R) and the Business Enterprise Tax (BET).

For late filing of the M&R tax, if a business delays filing, they incur penalties. The late fee is usually $10 or 10% of the tax due, whichever is greater, plus interest. Businesses should ensure timely filing to avoid these penalties.

Non-payment of required taxes, such as M&R and BET, can result in significant consequences. For non-payment, the state can impose additional penalties and interest on the owed amount. Continued non-payment might lead to collection actions, which can include liens on business assets and potential legal actions. It's crucial for businesses in New Hampshire to comply with all tax obligations promptly to avoid these severe repercussions.

Sales tax discounts and incentives

In 2024, New Hampshire continues its tradition of being a favorable environment for businesses by not having a state sales tax. This means businesses do not collect sales tax on goods and services sold within the state.

Additionally, New Hampshire does not impose a personal income tax or a capital gains tax, further enhancing the overall tax benefits for businesses operating there.

While there are no specific "sales tax incentives" since no sales tax is levied, businesses can benefit from other financial incentives.

These include various tax credits and exemptions, such as the Economic Revitalization Zone Tax Credits, which can reduce the Business Profits Tax for companies that invest and create jobs in designated areas.

The state also offers the Research and Development Tax Credit, which encourages innovation by providing tax relief on expenses related to R&D activities.

2024 sales tax filing due dates for New Hampshire

Coming soon.

Shipping and sales tax in New Hampshire

When to pay tax on shipping in New Hampshire

In New Hampshire, there is no general sales tax, including on shipping.

Businesses in New Hampshire do not collect or remit sales tax on the sale of goods, including shipping charges. Therefore, in 2024, a business would not pay sales tax on shipping in New Hampshire because the state does not have a sales tax.