The New Hampshire Room and Meals Tax is a 8.5 percent tax on restaurant meals and other prepared foods sold for consumption off-premises, hotel rooms and other room rentals, and motor vehicle rental services. Revenues from this tax are considered a proxy for tourism activity. Room and Meals Tax revenues are a significant part of the State’s tax base. In FY 1990, this tax along with the Business Profits Tax and the tobacco product tax accounted for almost half of all state tax revenues.
As tourism has become more popular and affordable, many people have begun to rent out their homes on short-term basis, either as whole houses or individual rooms in a home, through online platforms such as Airbnb and Vrbo. While these new income opportunities provide a welcome source of cash, they have also created new tax implications for homeowners.
New Hampshire law requires all owners of lodging establishments, including hotels, inns, motels, bed and breakfasts, restaurants, taverns, clubs, ski areas, cottages, tourist homes, and motor vehicle rental agencies, to register and collect the Meals and Rooms Tax. These operators are required to file a report with Granite Tax Connect on the 15th of each month for the taxable period. This information is reported to the Division of Travel and Tourism.
How to Pay New Hampshire Room and Meals Tax?
NH Meals and Rooms Tax returns are due by the 15th day of the month following the taxable period. You can pay your Meals and Rooms tax by credit card or check, but you may be charged a convenience fee. The taxable period includes the time that you rent the accommodation, including weekends and holidays. You must provide a separate report for each taxable period. You must also include a 3% timely filing commission.
In addition to the rooms and meals tax, there are other taxes that may be applicable to short-term rentals in New Hampshire. These include the business profits and enterprise tax (BPT) and the room occupancy tax (BET). The BPT applies if total rental income earned everywhere in 2015 exceeded $207,000 or if the combination of interest, compensation, and dividends paid was over $103,000. The BET applies if the rentable square footage of the property exceeds 12,500.
