Short-Term Rental Taxes in New Hampshire: What Investors Need to Know in 2025
No state income tax on rental income. No bonus depreciation conformity issue. 8.5% rooms and meals tax (uniform statewide, no local add-ons). New Hampshire is the most tax-favorable state for STR investors in the entire Northeast region.
New Hampshire is the standout state tax environment for STR investing in the Northeast. With no state personal income tax on rental income and no local income tax, NH investors keep the full federal benefit of cost segregation without any state-level offset. The White Mountains, Lake Winnipesaukee, the ski resorts (Cannon, Loon, Bretton Woods, Wildcat), and Seacoast area anchor a four-season STR market.
No New Hampshire State Income Tax: The Major Advantage
New Hampshire is one of only nine states with no broad-based personal income tax. The state's Interest and Dividends Tax — which taxed investment income but not wages or rental income — was fully phased out effective January 1, 2025. As of 2025, New Hampshire individual residents pay zero state income tax on any form of income, including net rental income from STR properties.
This means NH STR investors benefit from 100% federal bonus depreciation with no state-level addback requirement. A $200,000 federal bonus depreciation deduction saves $74,000 in federal taxes at 37% — with zero state income tax impact. Compared to Vermont investors facing an 8.75% addback penalty, New Hampshire investors are approximately $17,500 better off on the same size cost seg deduction.
New Hampshire Rooms and Meals Tax
New Hampshire's 8.5% rooms and meals tax is the primary transaction tax on STR rentals. Unlike most states, New Hampshire has no local option rooms tax — the 8.5% rate is the same statewide, from North Conway to Portsmouth to Laconia. This simplicity is an advantage for STR operators who don't need to navigate multiple jurisdictional rates.
| Market | County | NH Rooms & Meals Tax | Local Tax | Total |
|---|---|---|---|---|
| North Conway | Carroll County | 8.5% | None | 8.5% |
| Laconia / Lake Winnipesaukee | Belknap County | 8.5% | None | 8.5% |
| Lincoln / Loon Mountain | Grafton County | 8.5% | None | 8.5% |
| Bretton Woods / Mount Washington Hotel | Coos County | 8.5% | None | 8.5% |
| Franconia / Cannon Mountain | Grafton County | 8.5% | None | 8.5% |
| Hampton Beach | Rockingham County | 8.5% | None | 8.5% |
Top New Hampshire STR Markets
North Conway / White Mountains: North Conway serves as the commercial hub for the White Mountains, home to skiing at Cranmore, Attitash, Wildcat, and a short drive to Cannon and Bretton Woods. The area draws hikers, leaf peepers, skiers, and outlet shoppers. Mount Washington — the highest peak in the Northeast — drives significant adventure tourism. STR demand is genuinely four-season.
Lake Winnipesaukee / Lakes Region: New Hampshire's Lakes Region, centered on Lake Winnipesaukee (the largest lake in the state), is a summer tourism stronghold. Boating, waterskiing, fishing, and the general lake escape draw families from the Boston metro area. Laconia, Wolfeboro, and Meredith are the primary lake towns. Lakefrontinvestment properties carry premium values and strong summer occupancy.
Hampton Beach / Seacoast: New Hampshire has only 18 miles of coastline, but Hampton Beach is a highly developed summer beach destination. STR demand is intensely seasonal (peak July–August) but very strong within season. Hampton Beach benefits from proximity to the Boston and Portland, ME metros.
Cost Segregation in New Hampshire: Maximum Benefit
New Hampshire offers the maximum possible cost segregation benefit in the Northeast because there is no state income tax offset. Every dollar of federal bonus depreciation deduction saves only federal taxes — and the savings are 100% retained. A $600,000 North Conway ski property with $160,000 in cost seg deductions at 37% federal generates $59,200 in year-one savings with no state-level dilution whatsoever.
Estimate Your New Hampshire STR Tax Savings
New Hampshire's no-income-tax environment delivers the full federal benefit with zero state offset. The best cost seg ROI in the Northeast. Get your free estimate.
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