New Hampshire does not have a general sales tax, so groceries you buy at the supermarket are not taxed. The NH food tax that people actually run into is the state’s 8.5% meals and rooms tax, which applies to prepared food and beverages served by restaurants, caterers, food trucks, and the prepared-food sections of grocery stores. The rate is set by RSA 78-A, and the practical question for most shoppers and diners is which side of the line a given purchase falls on.
What Counts as a Taxable Meal
Under RSA 78-A, a taxable “meal” is any food or beverage prepared for human consumption and served by a restaurant for a charge.1New Hampshire Department of Revenue Administration. Declaratory Ruling 05025 – RSA 78-A:3 Definitions Eating in or taking out makes no difference. If a restaurant sold it, assume it is taxable.
Three categories of prepared food are taxable even when they look like grocery items: sandwiches of any kind, hot or cold; beverages served in unsealed containers, like fountain sodas or poured coffee; and catered or delivered meals. The administrative rules add salad bars, buffets, platters, party trays, and any prepared food packaged as a meal to the taxable list.2New Hampshire Department of Revenue Administration. Chapter Rev 700 – Meals and Rentals Tax Snacks prepared for immediate consumption also qualify when they are not sealed in their original packaging: freshly popped popcorn, ice cream novelties, and individually sold baked goods (fewer than six items) all count as taxable meals when a restaurant is doing the selling.
The tax rate is 8.5% on any taxable meal over $1.00.3New Hampshire General Court. New Hampshire Code 78-A:6 – Imposition of Tax It must appear as a separate line on your receipt.
Groceries and Deli Counters
Regular grocery items are not taxable. Fresh produce, uncooked meat, dairy, canned goods, and other staples you take home and cook are completely outside the meals tax.2New Hampshire Department of Revenue Administration. Chapter Rev 700 – Meals and Rentals Tax
The wrinkle is the deli counter, hot food bar, or prepared-foods section. That portion of the store is treated as a restaurant. A rotisserie chicken, deli sandwich, cup of hot soup, or party platter from that counter is taxed exactly as it would be at any restaurant. The test is whether the food is sold in a manner commonly considered a meal, or in a way different from how a regular retail food store would sell it.
Sealed, pre-packaged items sold the way a normal grocery aisle would sell them stay tax-free even in a store that also has a restaurant section. A bottle of salad dressing on the shelf is not a meal. A container of hot pasta salad from the deli is.
Bakeries and the Six-Item Rule
Bakeries have their own rule. A bakery that sells only baked goods intended for off-premises consumption is not taxed on any of its sales, no matter how much you buy.4Cornell Law Institute. NH Admin Code Rev 702.13 – Bakery Sales
Once a bakery adds restaurant-style items — sandwiches, poured coffee, baked goods meant to be eaten on the spot — the whole shop is treated as a restaurant, and single baked goods become taxable. You can still avoid the tax by buying six or more items for off-premises consumption, in any combination: two donuts, three cookies, and a brownie qualifies. A whole pie, cake, or loaf of bread also counts as six or more servings. Grab a single muffin with your coffee at that same bakery and you will pay 8.5% on both.
Beverages and Alcohol
Beverages follow a sealed-versus-unsealed rule. A canned soda, bottled juice, sealed coffee drink, or carton of milk in its original unopened container is not a taxable meal even when bought at a restaurant.2New Hampshire Department of Revenue Administration. Chapter Rev 700 – Meals and Rentals Tax Fountain drinks, poured coffee, open-container beverages, and anything mixed on the spot are taxable.
Alcohol served by a restaurant is always taxable, even without food.5New Hampshire Department of Revenue Administration. Meals and Rooms (Rentals) Tax FAQ A beer at the bar or a glass of wine with dinner carries the 8.5%. Sealed alcohol bought in its original container at a store falls outside the meals tax.
Tips and Mandatory Gratuities
Voluntary tips you add to the bill are not part of the taxable amount. Mandatory gratuities, like an automatic 18% added for a large party, are treated more carefully. New Hampshire exempts a mandatory gratuity from the tax only when the operator meets all of these conditions:
- The gratuity actually goes to the service employees who provided the service, not to management and not as a wage subsidy.
- The exempt portion does not exceed 18% of the meal charge; anything above 18% that is not separately broken out on the bill is taxable on the excess.
- Payroll or business records document that the money was distributed to service employees rather than used in place of wages.
If a “service charge” fails those tests — for example, because management keeps a share — the whole charge becomes part of the taxable receipts.6New Hampshire General Court. New Hampshire Code 78-A:6-a – Exception to Tax; Gratuity Charges
Nonprofit and Charitable Meals
Meals provided on the premises of a nonprofit corporation or association can qualify for an exemption under RSA 78-A:6-c.7New Hampshire General Court. New Hampshire Code 78-A:6-c – Exception to Tax; Meals Church suppers, charitable fundraising dinners, and similar events can fall inside this carve-out, but eligibility depends on the organization and the circumstances of the meal. Groups planning an event should confirm with the Department of Revenue Administration before assuming the exemption applies.
If You Sell Prepared Food
Anyone selling taxable meals in New Hampshire has to register each location with the DRA and obtain a meals and rentals license before opening. The license must be posted where the public can see it, and the DRA will not issue or renew it if the operator owes any unpaid tax, interest, or penalty.8New Hampshire General Court. New Hampshire Code 78-A:4 – Registration of Operators Returns are due on the 15th of the month following each taxable period, and a return must be filed for every month, even months with no sales, unless the operator has been approved as a seasonal filer.5New Hampshire Department of Revenue Administration. Meals and Rooms (Rentals) Tax FAQ A missed zero-dollar filing can still cause problems at renewal time.
Food trucks are classified as restaurants and need a single license for the business, with the license number displayed on the outside of each truck. Caterers face an especially wide taxable base: glassware, linens, heating equipment, service personnel, and prepaid alcohol are all part of the taxable charge. Items unrelated to the meal, such as tent rentals or decorations, escape the tax only when they are separately stated on the invoice.2New Hampshire Department of Revenue Administration. Chapter Rev 700 – Meals and Rentals Tax