How do I collect sales tax legally?

How to Collect Sales Tax Legally in New Hampshire

New Hampshire is one of the few states in the U.S. that does not impose a general sales tax on most goods and services. This unique tax environment simplifies sales tax collection for many businesses operating within the state.

Sales Tax Collection Requirements in New Hampshire

• No General Sales Tax: As of 2026, New Hampshire does not require businesses to collect sales tax on most retail sales. This means you generally do not need to register for a sales tax permit or collect sales tax from customers.
• Exceptions – Specific Taxes: While there is no general sales tax, certain specific taxes apply, such as the Meals and Rooms Tax on lodging and prepared food. Businesses in hospitality must register and collect this tax accordingly.
• Remote Seller Nexus: If your business sells to customers in other states, you may have sales tax collection obligations in those states based on their nexus laws. Ensure you comply with out-of-state sales tax requirements if applicable.

Operational Steps for Businesses in New Hampshire

• Verify Your Business Activities: Determine if your business activities fall under any taxable categories like lodging or prepared food subject to the Meals and Rooms Tax.
• Register with the New Hampshire Department of Revenue Administration (DRA): If applicable, register to collect and remit specific taxes such as the Meals and Rooms Tax.
• Maintain Accurate Records: Keep detailed records of all sales transactions, including exempt sales, to support compliance and bookkeeping.
• Monitor Out-of-State Sales: Track sales to customers in other states and review those states’ sales tax rules to ensure proper remote seller compliance and registration if required.
• Implement Automation Tools: Use accounting or point-of-sale software that can handle tax exemptions and out-of-state tax collection to streamline compliance and reporting.

Related Operational Considerations

• Business Licensing: Ensure your business is properly registered with New Hampshire authorities even if sales tax collection is not required.
• Payroll and Employment Taxes: Separate from sales tax, comply with state payroll tax requirements if you have employees.
• Compliance and Reporting: Submit required tax returns for any applicable state taxes and maintain compliance with recordkeeping standards.