New Hampshire Internet Sales Tax

Learn about the Internet sales tax rules for New Hampshire.

Update: Below is an article on the Internet sales tax rules for this state prior to the Supreme Court's decision in South Dakota v. Wayfair Inc. on June 21, 2018. The Wayfair decision overturned the prior rule established in Quill Corporation v. North Dakota which prohibited states from requiring a business to collect sales tax unless the business had a physical presence in the state. Some states already had laws prior to the Wayfair decision (commonly referred to as Amazon Laws) that require larger Internet sellers without a physical presence in the state to collect and pay sales tax under certain circumstances. It is expected that states will now pass new laws requiring online retailers to collect sales tax for sales within their state. We will update this article as the laws change. For more information, see Internet Sales Tax: A 50-State Guide to State Laws.

New Hampshire, along with Alaska, Delaware, Montana, and Oregon, is one of five states with no state sales tax. Therefore, if you are selling goods or products over the Internet to customers located in New Hampshire, sales tax for those customers should be a non-issue.

However, at the federal level, Congress has repeatedly considered legislation that would affect large Internet retailers and how online sales taxes are collected in all states. The most recent form of a proposed federal law is the Marketplace Fairness Act of 2015. As in previous versions, the 2015 Act would allow states to require sellers not physically located in their state to collect taxes on online and catalog sales made to people in their state. Sellers that make $1 million or less in annual sales and have no physical presence in the state would be exempt from this requirement. States would have to meet certain criteria to simplify their sales tax laws and make sales tax collection easier before they could require sellers to collect the tax.

Sales Tax Statement from New Hampshire’s Taxing Authority

The New Hampshire Department of Revenue Administration (DORA) has a webpage containing the very simple statement that “New Hampshire does not have . . . a general sales tax.” (The same statement also mentions there is no state income tax on employee wages.)

You can find a list of the taxes that New Hampshire does have on a separate DORA webpage. However, it is extremely unlikely that any of those taxes would be relevant to an out-of-state Internet retailer.

For States That Do Have Sales Tax

The current default rule throughout the United States is that you must collect sales tax on Internet sales to customers in those states where your business has a physical presence—assuming, of course, that the state involved has a sales tax. The physical presence rule is based on a 1992 United States Supreme Court decision, Quill Corp. v. North Dakota, that addressed the obligations of mail order businesses to collect sales tax on out-of-state sales; the decision has been extended to include online retailers. Generally speaking, a physical presence means having:

  • a warehouse in the state
  • a store in the state
  • an office in the state, or
  • a sales representative in the state

As you might expect, the corollary to the physical presence rule is that, if you do not have a physical presence in the state, you generally are not required to collect sales tax for an Internet-based sale to someone in that state.

Because New Hampshire has no sales tax, these rules are not relevant to sales you make to New Hampshire customers.

An Issue for New Hampshire-based Internet Businesses

If you are based in New Hampshire, and are doing a lot of business, you may already be aware of the various proposed federal laws that would require large New Hampshire Internet retailers to collect sales tax in other states. Any such law would be contentious. Back in 2012, for example, a leading New Hampshire newspaper reported that New Hampshire representatives in the House and Senate strongly opposed the then-current version of the proposed law.

Additional Information

Because Internet sales tax is a subject of ongoing debate, you should periodically consider checking the DORA website. For more general information on taxes on Internet sales, see Nolo's article Sales Tax on the Internet. And, for information on the rules about collecting sales tax for Internet sales in any other state, see Nolo’s article, 50-State Guide to Internet Sales Tax Laws.

Updated: April 14, 2016

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