NH Meals and Rooms tax decreasing by 0.5% starting Friday

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Concord, NH – The New Hampshire Department of Revenue Administration (NHDRA) is reminding operators and the public that starting October 1, 2021, the state’s Meals and Rooms (Rentals) Tax rate will decrease by 0.5%, from 9% to 8.5%.

“To ensure a smooth transition to the new tax rate, we are reminding operators and taxpayers alike of this change,” said Lindsey Stepp, Commissioner, NHDRA. “It is important for businesses of all sizes to be reminded of the change and to implement the new rate on October 1. Doing so will help ensure transparency with customers who will be expecting this lower rate and ensure compliance with state law.”

The Meals and Rooms Tax is assessed upon patrons of hotels or any facility with sleeping accommodations, restaurants, and motor vehicle rentals. Beer, wine, and liquor served at a restaurant is also subject to this tax, whether or not food is served.

Businesses that utilize computers or other electronic systems, such as a point-of-sale (POS) system, will need to update the system to reflect this new 8.5% tax rate. Additionally, if the tax rate is reflected on menus, websites, or other business materials, businesses may need to update those materials. NHDRA is emphasizing the importance of alerting staff of this tax rate reduction as well to avoid potential confusion.

For questions about this tax rate change, please visit Meals and Rooms Tax FAQ or call Taxpayers Services at 603-230-5920.