Running a business in New Hampshire comes with one clear advantage: the state has no general sales tax. That simplicity, however, doesn’t mean you’re completely off the hook when it comes to taxes. The Meals and Rooms (Rentals) Tax applies to restaurants, hotels, and motor vehicle rentals, making it a key responsibility for many local business owners across the Granite State.
Whether you’re serving diners in Portsmouth, managing a ski lodge in Conway, or running a boutique hotel in Manchester, understanding how this tax works is essential to staying compliant. Below, we’ll walk through what’s taxable, how to register, when to file, and how DAVO can help automate the process, so you can focus on your guests, not your tax obligations.
Does New Hampshire have sales tax?
New Hampshire is one of the few states in the U.S. that does not have a general statewide sales tax. That means when customers buy tangible goods, like clothing, electronics, or furniture, they don’t pay sales tax at the register. This tax-free environment makes New Hampshire an attractive destination for shoppers from neighboring states like Maine, Massachusetts, and Vermont.
However, that doesn’t mean the state is entirely tax-free. Certain specific goods and services are taxed, such as restaurant meals, hotel stays, and car rentals. These are governed under separate tax programs like the Meals and Rooms (Rentals) Tax, also referred to as the M&R Tax, which we’ll cover next.
What is the New Hampshire sales tax rate?
The statewide sales tax rate for New Hampshire is 0% since the state does not impose a tax on general sales. However, that doesn’t mean there are no taxes on all goods or services. The state does impose an M&R Tax of 8.5% on certain transactions, which applies to prepared meals, room rentals, and vehicle rentals.
New Hampshire sales tax on food
While grocery items and unprepared foods are not subject to sales tax, any prepared meals, whether enjoyed in the restaurant or taken to-go, are subject to the 8.5% Meals and Rooms Tax.
For restaurant owners, this means sales tax must be calculated, collected, and remitted to the state regularly. Managing this process accurately and on time can be time-consuming, especially when juggling other business responsibilities. That’s where DAVO comes in. DAVO automates the daily collection, filing, and payment of the Meals and Rooms Tax, helping restaurant owners stay compliant without the stress of managing deadlines or manual calculations.
How to calculate New Hampshire Meals and Rentals Tax?
If you’re a restaurant owner or a hotel operator in New Hampshire, calculating your sales tax amount is easy. Since there are no other local or use tax rates, you’ll take your total taxable sales and multiply the amount by 8.5% (0.085).
Use our sales tax calculator
To quickly calculate your meals and rentals tax, use our calculadora de impuestos sobre las ventas. Enter the standard rate of 8.5% and your total sales.
How to manage tax-exempt sales in New Hampshire?
Since New Hampshire does not have a general statewide sales tax, most businesses won’t have to deal with sales tax exemptions. However, there are a few limited exemptions that apply to specific entities, such as instrumentalities of the State of New Hampshire, the federal government, schools, and medical facilities.
It’s important to note that the state does not issue Meals and Rooms (Rentals) Tax exemption certificates. This means that, even for qualifying organizations, the process for claiming an exemption is not based on presenting a state-issued certificate. Businesses should verify eligibility carefully before making a tax-exempt sale and keep records for their own documentation.
How to register for New Hampshire Meals and Rooms license?
Before collecting and remitting the Meals and Rentals Tax, businesses must register with the New Hampshire Department of Revenue Administration (NHDRA) for an M&R Tax License.
Any business opening a hotel, offering sleeping accommodations, selling taxable meals, or renting motor vehicles is required to apply for an Operator’s License first before receiving a Meals and Rentals Tax license. This ensures the business is properly authorized to collect and remit the tax.
You can apply online through the Granite Tax Connect portal on the NHDRA website. The application will ask for standard business information, including your business name, address, federal tax ID, and type of business activity (restaurant, lodging, or vehicle rental).
Once approved, you’ll receive your Meals and Rooms (Rentals) Tax Operator License, which must be displayed prominently at your business location. All M&R Tax licenses expire on June 30th every odd-numbered year and will automatically be renewed if there are no overdue returns, unpaid taxes, interest, or penalties.
For more information on registering, visit the NHDRA site on Meals and Rooms Tax.
How to file and pay meals and rentals tax in New Hampshire?
Once you’ve obtained your Meals and Rentals Tax license, all taxable sales must be reported and paid to the NHDRA. Most businesses file monthly, though the filing frequency can vary depending on your total taxable sales. You may request to be a quarterly or seasonal filer if your business qualifies.
Businesses can file and pay online through Granite Tax Connect, which is the NHDRA’s secure portal. Filing online is the recommended method because it is faster and more convenient. Even if you have no taxable sales for a period, you are still required to file a return. Payments can be made electronically using ACH Debit Authorization or a credit card.
For businesses that prefer paper filing, you can mail your return and payment to NHDRA, PO Box 637, Concord, NH 03302-0637.
Make your sales tax less taxing with DAVO.
When is New Hampshire meals and rooms tax due date?
In New Hampshire, meals and rentals tax returns are generally due on the 15th of the month following the taxable period. For example, sales made in January would have a return and payment due by February 15. This applies whether you file monthly or on a different schedule assigned based on your total taxable sales.
M&R Tax Discount
New Hampshire offers a 3% commission for businesses that meet certain requirements. To qualify, you must keep the prescribed records, file your meals and rentals tax return on time, pay the tax due on time, have no outstanding prior balance, and file the return by the proper method. If operators have $25,000 or more in taxable revenue, returns must be filed electronically to receive the commission.
If you are using DAVO to manage your sales tax, this 3% commission is returned to you in full after your M&R Tax has been filed and remitted, typically within a few days of your filing date. If you have $25,000 or more in taxable revenue, this commission returned ($63.75) covers the entire cost of the DAVO subscription.
For businesses looking to take advantage of sales tax discounts in other states, you can refer to our guide on state sales tax discounts to see which states offer them.
What are the penalties for filing M&R Tax late?
There are penalties for both late filing and late payment of the New Hampshire Meals and Rentals Tax. Interest also accrues on unpaid balances. The exact amounts can vary, so it’s best to contact the New Hampshire Department of Revenue Administration (DRA) for the most up-to-date penalty and interest rates.
Failing to file or pay on time can have serious consequences, including the automatic denial or delay of your operator’s license renewal. Staying compliant helps ensure your business continues operating without interruption.
How DAVO can help with New Hampshire Meal & Rooms (Rentals) Tax
Managing New Hampshire’s Meals and Rentals Tax can easily slip through the cracks when you’re busy running a restaurant or taking care of guests. That’s where DAVO comes in. DAVO automatically sets aside the tax you collect, files your return, and makes your payment on time and in full, garantizado,. You don’t have to stress about due dates or license renewals again. Whether you’re serving breakfast in Concord or welcoming travelers in Portsmouth, DAVO takes care of the tax details so you can focus on what you do best.
Choose your POS system to get started with DAVO today.
Department of Revenue Administration Information:
https://www.revenue.nh.gov/
(603) 230-5920
