New Hampshire vacation rental tax guide
Avalara free tax guides
With a bounty of popular destinations including Concord, Hampton, and Portsmouth, the Granite State offers ample opportunity for short-term rental (STR) businesses.
But these opportunities come with tax obligations. Like hotel stays, STR stays in New Hampshire are subject to lodging tax. Failure to comply with state and local tax laws can result in fines and penalties. Tax jurisdictions are increasingly making STR tax compliance a priority, so it’s important to address compliance before tax authorities address it for you.
Avalara MyLodgeTax put together this guide to help you comply with New Hampshire lodging tax laws. For more information on the tax rates and jurisdictions that apply to your rental’s specific location, use our lodging tax lookup tool.
No lodging tax guide is a substitute for professional tax advice. Consider this an asset to help you understand and prioritize your lodging tax questions and concerns. Questions pertaining to specific situations or out-of-the-ordinary conditions are best solved with a certified tax professional familiar with New Hampshire tax laws.
Lodging tax basics
Lodging tax is calculated as a percentage of the cost of your guest’s stay and added to the price on the bill. The guest pays the tax, but the STR operator is responsible for collecting and paying it to the proper tax authority.
What’s the definition of “short-term rental” in New Hampshire?
In New Hampshire, rentals of sleeping accommodations of less than 185 days are subject to lodging tax.
Who’s required to collect and file lodging taxes on short-term rentals in New Hampshire?
If you collect payment from short-term guests renting out a room, apartment, house, or other dwelling, you’re likely responsible for collecting, filing, and remitting lodging tax to New Hampshire tax authorities.
Location is key to compliance
The location of your rental is a crucial piece of information for lodging tax compliance. Use our lodging tax lookup tool to get a rate report specific to your New Hampshire STR’s address. The report includes the estimated total tax rate to collect from guests, number of required registrations, number and frequency of returns per year, and minimum number of rented days to qualify as a taxable stay. It should be noted that tax rates and the rules governing them change frequently. Please consider your tax rate report to be informative rather than authoritative.
Local short-term rental regulations
STR operators in New Hampshire should be aware of the local regulations that apply to them, including rules covering:
- Legality
- Permits, licenses, and registration
- Zoning
- Advertising
- Neighborhood notification
- Building and housing standards
In New Hampshire, STR operators must post their Meals and Rooms Rentals Tax Operators License on any advertisement.
Homeowner associations (HOAs), condominium communities, co-ops, and landlords may also have specific rules regarding vacation rentals. It’s your responsibility to be aware of STR policies that apply to your property.
Registering with tax authorities
Before you can begin collecting taxes on your STR in New Hampshire, you’re legally required to register with the New Hampshire Department of Revenue Administration. You can register online to receive a Meals and Rooms (Rentals) Tax License.
Collecting lodging taxes
Once you’ve registered with tax authorities, you’re ready to start collecting lodging tax, which you’ll add to your guest’s bill when they pay for their stay.
Which taxes apply to New Hampshire short-term rentals?
In New Hampshire, state Meals and Rooms (Rentals) Tax applies to STRs.
| Tax name | Filed and remit to |
|---|---|
| State Meals and Rooms (Rentals) Tax | New Hampshire Department of Revenue Administration |
Tax rates
Before you can begin collecting lodging taxes, you need to know the correct rate to charge to avoid compliance issues. Our lodging tax lookup tool can give you a rate report specific to your New Hampshire address.
What charges are taxable?
In New Hampshire, lodging tax applies to the full price charged for the rental. However, optional charges that are separately stated aren’t subject to lodging tax.
What happens when my short-term rental marketplace (such as Airbnb or Vrbo) collects taxes for me?
In New Hampshire, “rental facilitators” such as Airbnb and Vrbo are required to collect New Hampshire lodging taxes for their listings. If taxes aren’t being collected for you, you’re responsible for collecting and remitting them to state tax authorities.
Are guests ever exempt from taxes?
There are situations in which you aren’t required to collect lodging taxes in New Hampshire. For example, a guest who rents for a long term rather than a short term is exempt from short-term lodging taxes.
Accommodations purchased in the course of official business by certain buyers including federal, state, county, or municipal employees, diplomatic personnel, and some schools and students may be exempt from lodging tax. Rents incurred as the result of the partial or complete destruction of a person’s permanent residence are also exempt.
Filing lodging tax returns
After you’ve collected taxes from your guests, it’s time to file your tax returns with the New Hampshire Department of Revenue Administration. In New Hampshire, you can file returns and pay tax online. Credit card payments are allowed, but you may be charged convenience fees.
When do I need to file my returns?
You’ll be assigned a filing frequency and due dates when you register with the tax authority. For filing with the New Hampshire Department of Revenue Administration, due dates are as follows:
| Filing frequency | Due date |
|---|---|
| Monthly | Due the 15th day of the month following the end of the filing period |
| Quarterly | Due the 15th day of the month following the end of the filing period |
I didn’t rent my property during this filing period. Am I still required to file a lodging tax return with the New Hampshire Department of Revenue Administration?
Yes. STR operators registered with the New Hampshire Department of Revenue Administration are required to file returns each assigned filing period, regardless of whether you had any STR income or collected lodging taxes. Such returns are commonly known as “zero dollar returns.”
Are there penalties for filing taxes late?
Whether you choose to offer STRs through a marketplace like Airbnb or Vrbo, or directly to guests, you open the door to tax liability at the state and local level. As tax revenue is a major source of local funding, tax authorities are becoming more aggressive in their efforts to identify individuals and businesses violating tax laws. Failure to register with tax authorities and file STR tax returns in New Hampshire on time may result in late fees, interest payments, and in extreme cases, legal action.
I’ve been offering short-term rentals without collecting lodging tax. What options do I have?
If you’re already operating an STR but not collecting lodging tax, you may be in violation of New Hampshire tax laws. Take the time to review your legal responsibility (with a tax professional, if necessary) and understand the risk of continuing to not collect tax.
STR hosts in New Hampshire may be able to take advantage of a voluntary disclosure agreement (VDA). A VDA offers an opportunity for hosts to proactively disclose prior period tax liabilities in accordance with a binding agreement with the New Hampshire Department of Revenue Administration. VDAs are offered to encourage cooperation with state tax laws and may result in some or all penalty and interest payments being waived.
Are there options for outsourcing lodging tax filing?
Yes. Many STR operators in New Hampshire file several lodging tax returns every year. Filing solutions such as Avalara MyLodgeTax can relieve this burden.
