December 8, 2022

Reliance on sales taxes in New Hampshire is well below national average, study finds

As a share of total state and local tax revenues, sales tax collections in New Hampshire came in at 0 percent, representing a tie for the lowest percentage among the 50 states, according to a new Tax Foundation analysis.  

That percentage was well below the average level of state reliance on sales taxes (23.3 percent). The Tax Foundation study is based on the most recent data available, which reflects tax collections during fiscal year 2018. 

Consumption levies such as sales taxes are considered more stable than other taxes, including state income taxes, during economic downturns, according to the Tax Foundation. During the coronavirus era, sales tax collections initially dropped, but they recovered as more businesses reopened and consumers turned to online venues for products, the study says.

Four states – Delaware, Montana, New Hampshire and Oregon – have no state or local sales taxes, while Alaska allows for local sales taxes but has no statewide sales tax, according to the Tax Foundation. The remaining 45 states have statewide sales taxes in place, the study states, and 38 allow local governments to collect separate sales taxes.

This article was originally posted on Reliance on sales taxes in New Hampshire is well below national average, study finds

Sydney Boles