Taxes & Fees: Manchester vs Nashua

What tax do I owe on short-term rentals?

New Hampshire charges 8.5% meals and rooms tax on all short-term rentals under 185 days. Register with NH DRA to collect and remit.

Does Airbnb collect taxes automatically in NH?

Airbnb has a voluntary collection agreement with NH for the meals and rooms tax. Verify your listing is set up correctly.

What lodging tax do I charge guests at my Nashua STR?

Only the New Hampshire Meals and Rooms (Rentals) Tax at 8.5% of the gross rental charge, under RSA 78-A. The rate was reduced from 9% to 8.5% effective October 1, 2021. The tax applies to any occupancy of fewer than 185 consecutive days and covers the full charge for the room - including cleaning fees and mandatory service charges. Nashua does not impose a city lodging tax, and New Hampshire has no general retail sales tax, so 8.5% is the total state-and-local lodging tax on your bookings. You must hold a NH DRA Meals and Rooms License (obtained through Granite Tax Connect at gtc.revenue.nh.gov) and include your license number in every advertisement under RSA 78-A:6, V.

Does Airbnb collect the New Hampshire M&R tax for me?

Yes, for platform bookings. Airbnb began collecting and remitting the NH Meals and Rooms Tax on behalf of New Hampshire hosts in late 2020, and Vrbo collects in similar fashion. However, you must still (1) register for your own NH DRA Meals and Rooms License under RSA 78-A:4 - the platform's collection does not waive the registration requirement, (2) include your license number in every listing under RSA 78-A:6, V, and (3) personally collect and remit the 8.5% tax on any direct or off-platform bookings (your own website, repeat-guest direct bookings). Verify each filing period through Granite Tax Connect that the platform is remitting under your account.

Are there any city fees or taxes on top of the state M&R tax?

No city lodging tax. No city STR permit fee (Nashua has no STR ordinance). No city sales tax (New Hampshire has no general sales tax). Your only direct city cost is the standard Nashua property tax on the dwelling, billed by the Nashua Tax Collector. New Hampshire has no income tax on wages and the interest-and-dividends tax was fully phased out as of January 1, 2025. Federal income tax on net rental income still applies under IRC Sections 61 and 280A.