Buying a car in New Hampshire

Every figure below is sourced to New Hampshire’s own revenue or motor vehicle publications and dated. Estimates only.

New Hampshire at a glance

State sales tax
0%
Trade-in credit
Not applicable
New Hampshire charges no sales tax on a car, so there is nothing for a trade-in to reduce.
Dealer doc fee
Not confirmed
We have not confirmed a cap for this state, so we do not claim one.
Title and registration
$42.00
$42.00 registration.

New Hampshire taxes the car every year, not just at purchase

A recurring annual tax on the vehicle’s value applies here — assessed at 100% of value at a representative 1.8% rate. It never appears in a monthly payment and is easy to miss when comparing states.Models the RSA 261:153 MUNICIPAL PERMIT FEE, New Hampshire's recurring annual value-based vehicle tax. THE BASE IS ORIGINAL FACTORY LIST PRICE (MSRP when new), not current market value and not purchase price — hence a 100% assessment ratio, with all the depreciation expressed through the declining rate instead. The rate declines by model-year age, stated in the statute as mills per dollar: 18 mills (1.8%) current model year, then 15 (1.5%), 12 (1.2%), 9 (0.9%), 6 (0.6%), and 3 mills (0.3%) at 5 or more years. 1.8% is the current-model-year rate, right for a new purchase and materially overstating for anything older — implement the six-step schedule. Minimum $5. UNUSUAL SHAPE: the mill rates are fixed by state statute and uniform across New Hampshire towns, so 'local' here means locally COLLECTED rather than locally rate-set, making this figure exact rather than representative. Because it bottoms out at 0.3% of original list, New Hampshire is expensive for new cars and very cheap for old ones.

Local tax in New Hampshire

NEW HAMPSHIRE HAS NO GENERAL SALES TAX — none at state or local level, so a vehicle purchase incurs no tax at the point of sale whatsoever, recorded as a hard 0. What is charged instead is a two-part annual registration: a STATE fee based on gross weight under RSA 261:141 ($42 for 0-3,000 lb, $48 for 3,001-5,000 lb, $66 for 5,001-8,000 lb, $1.06 per hundred pounds above that), and a MUNICIPAL PERMIT FEE collected by the town or city clerk under RSA 261:153, which is value-based and by far the larger component for a newer vehicle — see annualVehiclePropertyTax. All New Hampshire vehicles begin registration at the clerk of the owner's residence, so both are paid together.