Meals & Rooms (Rentals) Tax

Frequently asked questions in regard to Meals & Rooms (Rentals) Tax (M&R).

What is the Meals and Rooms (Rentals) Tax?

A 8.5% tax is assessed upon patrons of hotels (or any facility with sleeping accommodations), and restaurants, on rooms and meals costing $.36 or more. A 8.5% tax is also assessed on motor vehicle rentals. Motor vehicle fees, other than the Motor Vehicle Rental Tax, are administered by the NH Department of Safety (RSA 261). For more information on motor vehicle fees, please contact the:

NH Department of Safety
10 Hazen Drive
Concord, NH 03305
(603) 271-2382

Do I need to post my Meals and Rooms (Rentals) license?

Yes, the Meals and Rooms (Rentals) license must be conspicuously posted in a public area upon the premises to which it relates. Additionally, any advertisement for a short-term rental by print, display, publication, distribution, or online listing offering a short-term rental shall include the meals and rooms license number of the operator. A short-term rental is one or more rooms in a residential unit for occupancy for tourist or transient use for less than 185 consecutive days.

Who pays it?

The tax is paid by the consumer and collected by operators of hotels, restaurants, or other businesses providing taxable meals, room rentals, and motor vehicle rentals. Approved seasonal operators must file reports for each month of their approved season, even if no tax is due.

Payments can be made on our online portal, Granite Tax Connect at

When is the tax due?

The tax is due on the 15th day of the month following the taxable period. Electronic filing using our online portal, Granite Tax Connect, is available to Meals and Rooms (Rentals) Operators. A paper return is not required if filing electronically, but operators must retain the Meals and Rooms (Rentals) worksheet.

What are the requirements for room and motor vehicle rental facilitators?

RSA 78-A defines an operator to include room and motor vehicle rental facilitators. As such any room and motor vehicle rental facilitator doing business in New Hampshire must obtain a NH Meals and Rentals License and collect and remit rooms and motor vehicle tax to the state. The tax should be collected on the full price charged including any fee, service or other charge paid to the facilitator by the consumer.

How do I become an approved seasonal operator?

See the NH Code of Administrative Rule Rev 706.04 for guidelines used in the request.

File form CD-100, which can be found on our Forms & Instructions page to: New Hampshire Department of Revenue Administration Collections Division

New Hampshire Department of Revenue Administration
Collections Division
PO Box 454
Concord, NH 03302-0454

Who do I contact with questions?

Call Taxpayers Services at (603) 230-5920 or visit our office at:

New Hampshire Department of Revenue Administration
109 Pleasant Street (Medical & Surgical Building)
Concord, NH 03302-1467

What records do I need to keep and for how long?

Keep all records used to record and report your Meals & Rentals Tax for three (3) years. This includes the meals and rentals tax worksheet, e-file screen prints, cash receipts journals, cash disbursement journal, general ledger, payroll records, complete cash register tapes, guest checks and registration cards, bank statements with all enclosures and any other source document used in your accounting records. If you sell both taxable and non-taxable items, you are required to maintain records to justify the non-taxable sales. For more information, see TIR 2002-010.

How are bakery products taxed?

All bakery products sold in quantities of less than six from a restaurant are taxable. A bakery is classified as a restaurant when it offers other taxable items for sale such as, but not limited to, coffee, soda, sandwiches, salad bars and/or prepared foods. The taxability of bakery products is not affected by whether the bakery product is served to be eaten on the premise or on a "to go" basis.

Are gratuities and service charges taxed?

Gratuities and other service charges are not taxable when the charge is:

  • Not used as a supplement or in lieu of wages, or for managerial bonuses;
  • Paid to the service personnel providing the service for which the gratuity was charged;
  • Separately stated on the occupant's receipt or contract;
  • Usual and customary; and
  • Records must be maintained to substantiate the distribution of the gratuity.

For more information, please see TIR 2002-004.

Do I need a separate license for catering?

Yes, an additional separate license is required for serving of meals at various locations for occasions such as but not limited to, banquets, weddings, barbecues, outings, picnics, etc.

Are party platters taxable? Even if I am not serving?

Yes, party platters such as, but not limited to, vegetable, meat, dessert, fruit, appetizers, are taxable whether delivered, picked up, served or not.

Are non-profit organizations exempt from the Meals and Rooms (Rentals) Tax?

There is no "blanket exemption" for non-profit organizations from the Meals and Rooms (Rentals) Tax. However, there are limited exemptions for instrumentalities of the State of New Hampshire, the federal government, schools and medical facilities. Please refer to the NH Code of Administrative Rules Rev 702 for criteria.

If you have any questions about tax exempt sales, please call the Department for clarification at (603) 230-5920. The State of New Hampshire does not issue Meals and Rooms (Rentals) Tax exempt certificates.

How should I handle coupon and discount sales?

The tax should be applied to the sale amount after the discount or coupon reduction has been taken.

How can I tell if a U.S. government or State of New Hampshire issued credit card in the employee's name is paid directly by the government or state and not by employee reimbursement?

Information is available on the GSA Smart Pay website at

When is long term room rental subject to the Meals and Rooms (Rentals) Tax?

Tax must be collected on all room rentals of less than 185 consecutive days. When a patron reaches the 185th consecutive day of occupancy the operator must refund to the patron the tax monies that have been collected. You may apply for a permanent residency credit pursuant to Rev 703.04.
Note: Operators may not utilize any credit amount until they have received a credit memo from the Department.

Are function room rentals taxable?

Yes, any type of room rental in a hotel (or any facility with sleeping accommodations) is subject to the tax.

Where can I get a copy of the Meals and Rooms (Rentals) Tax laws and rules?

Please visit the Department's Laws and Rules page for the following:

  • RSA 78-A
  • Rev 700

Do I need to file a return every month even if I have no activity?

Yes, you must file a return even if you have had no activity unless you have applied to be a seasonal filer.

Am I required to reapply for a Meals and Rooms (Rentals) Tax License every two years?

All Meals and Room (Rentals) licenses expire on June 30th in each odd numbered year. All current licenses which have not had an ownership change, ceased business, been revoked, or suspended, will be automatically renewed as long as the licensee and its owner(s)/operator(s) do not have overdue unfiled tax returns, unpaid taxes, interest, or penalties from any tax administered by the Department.  If, however, a licensee and its owner(s)/operator owe any unpaid taxes, interest, or penalties from any tax administered by the Department, the Department will send the owner(s)/operator a notice of delinquency and renewal of the license shall not be renewed until the delinquency is addressed with the Department.

What charges associated with automobile rentals are taxable?

All charges included in the rental agreement are taxable including, but not limited to, airport fees, drop off fees and under age fees. The following items are not subject to the tax when separately stated in the agreement:

  • Charges for fuel;
  • Charges for insurance; and
  • Charges for damages.

Is alcohol subject to the Meals and Rooms (Rentals) Tax?

Yes, beer, wine and liquor served by a restaurant are subject to the tax, even if served without food.

Can the 3% Timely Filing Commission be denied?

Operators may take the 3% commission only if they meet all of the following requirements:

  • Keep the prescribed records.
  • File the return timely.
  • Pay the tax due timely.
  • Have no outstanding prior balance due; and
  • File the return by the proper method (electronic filing is required for all operators having $25,000 or more in taxable revenue in a calendar year).

Operators required to file electronically, but choosing to file paper returns, shall not be allowed to deduct the 3% commission.