Starting October 1, 2021, the New Hampshire Department of Revenue Administration (NHDRA) is decreasing the state’s Meals and Rooms (Rentals) Tax rate from 9% to 8.5%.
The Meals and Rooms Tax is assessed to customers of hotels, restaurants, or other businesses providing taxable meals, room rentals, and motor vehicle rentals. Alcohol (beer, wine and liquor) served at a restaurant is also subject to this tax, whether or not food is served.
Businesses should ensure that their point-of-sale (POS) systems and computer systems are updated to reflect the decrease. Menus, websites and other business communication materials may also need to be updated. NHDRA is emphasizing the importance of alerting staff of this tax rate reduction as well to avoid potential confusion.
For more information from the NHDRA, please visit their website at: https://www.revenue.nh.gov/index.htm
For questions about this tax rate change, please visit: https://www.revenue.nh.gov/faq/meals-rooms.htm