New Hampshire Car Sales Tax: Everything You Need To Know
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When buying a new or used car, you should do yourself a favor and know about the additional fees and taxes that may be added to the car’s purchase price. Otherwise, you’ll find yourself going through sticker shock because you fail to anticipate the sales tax and fees associated with buying a car.
With that said, the majority of the states in the U.S. collect a sales tax on goods, including vehicle purchases. However, five states don’t impose any sales tax whatsoever, including New Hampshire.
That’s right, when it comes to New Hampshire car sales tax, you don’t have to worry because the state doesn’t collect it. Please keep reading to learn more about car sales tax in New Hampshire and everything else you need to know.
How Much is the New Hampshire Car Sales Tax?
As mentioned, there is no general sales tax on goods purchased in the state of New Hampshire – this includes car sales transactions. This means that if you register a vehicle in New Hampshire, you don’t have to pay for the sales tax, which applies to both new and used cars. The other states that don’t impose a general sales tax are Alaska, Delaware, Montana, and Oregon. With zero tax on car purchases, buyers can save thousands of dollars.
Since there’s no sales tax in New Hampshire, vehicle trade-ins are also unaffected. You benefit from your old vehicle credits that will count toward your new car purchase.
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Can You Buy a Car Out of State in New Hampshire and Avoid the Sales Tax?
No, unless you’re living in a state that doesn’t collect sales tax.
Before you drive to New Hampshire to purchase a new or used car, you should know that the sales tax applies to the state you register the vehicle in, not where you bought it. In many cases, if you drive to New Hampshire to purchase a car, the dealership will charge you the appropriate sales tax for your state.
For example, if you lived in Maine and bought a car out of state in New Hampshire, you’ll still have to go back to your state to register the vehicle. In that case, your new car purchase is still subject to Maine’s general sales tax of 5.50%, which will be collected by the dealership and forwarded to your state of residence (i.e., Maine). Therefore, there’s no way to take advantage of New Hampshire’s zero tax on car sales as a resident of another state – again, unless you’re living in a state that doesn’t impose sales tax as well.
What Fees Do I Need to Pay When Buying a Car in New Hampshire?
Even if there’s no New Hampshire car sales tax to worry about, you’re still required to pay a few fees when you purchase a new car in the state. According to GetJerry.com, the costs you’ll have to cover when buying a new car in New Hampshire include registration fees, title fees, license plate transfer, and documentation fees. Below is a quick breakdown of the costs:
- Registration fee: $31.20 to $55.20 on average
- Title fee: $25
- Plate transfer fee: $10
- Documentation fee: $27
Registering a vehicle in New Hampshire is a two-part process, which means fees are due to the town/city and the state. Please refer to RSA 261:141 for the explanation of state fees and RSA 261:153 for town or city fees. On top of the registration fees, an $8.00 plate fee may be collected for your first order of the plates.
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Process of Registering a Vehicle in New Hampshire
Registering a vehicle in New Hampshire will vary depending on where you purchase the car.
- Vehicle registration when purchased from a dealer: For New Hampshire residents who bought from a retail dealership operating in the state, you’ll need to present the certificate of title or the blue copies of your title application. You’ll be required to show proof of residency if you haven’t already.
- Vehicle registration when purchased from an out-of-state dealer: You’ll need to show the town or city clerk the title you received from the dealership or the New Hampshire title application from the lienholder. Proof of residency is also required if it’s your first time registering a vehicle. Brand-new vehicle sales will require a Manufacturer’s Statement of Origin (MSO).
- Vehicle registration when purchased via private sale: The buyer must present a properly assigned title certificate to the town or city clerk. Proof of residency is also required for first-time registration.
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New Hampshire Car Sales Tax: FAQs
Q: Does New Hampshire collect sales tax for vehicle purchases?
No. New Hampshire is one of the five states that doesn’t collect a general sales tax, including car sales transactions. That’s a considerable difference from buying from a state with sales tax, like San Diego, with 7.75%.
Q: What do you have to pay when buying a vehicle in New Hampshire?
Both the city/town and state will collect fees for registering a vehicle, including registration fees, title fees, license plate transfer, etc. While some people may consider these fees similar to taxes, these are flat fees and have nothing to do with how much you paid for the car.
Q: Can I buy a car in New Hampshire to avoid paying sales tax?
You can’t avoid paying if you live in a state that collects a general sales tax. The general rule is that if you purchase a car out of state, you’ll have to pay your state the difference between your home state’s sales tax and the amount you paid in the state where you bought the vehicle. Since New Hampshire doesn’t have a sales tax, you’ll still have to pay your home state the full amount.
Q: Can I register a car in New Hampshire to avoid paying taxes?
The zero sales tax is a privilege reserved for New Hampshire residents. In general, you can only register a vehicle in the state where you live. Unless you have a second home in New Hampshire where you spend a significant amount of time, you can register there instead of your primary residence.
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