No, New Hampshire does not have a statewide sales tax on cars. This is a significant benefit for car buyers in the state. However, you do pay other mandatory fees during the registration process. The primary cost is the Municipal Permit Fee, which is essentially a one-time registration tax based on the vehicle's model year and purchase price. This fee is separate from the standard registration fee.
The calculation for the Municipal Permit Fee is tiered. For a new vehicle, it's 1.5% of the purchase price. For used cars, the fee is based on the manufacturer's original suggested retail price (MSRP) and depreciates over time according to a state schedule. This fee is paid to the city or town where you register the vehicle.
| Vehicle Scenario | Example Purchase Price | Primary Fee Type | Estimated Fee (Example) | Additional Standard Fees |
|---|
| New Car | $35,000 | Municipal Permit Fee (1.5%) | $525 | + Registration Fee (~$31), Title Fee ($25) |
| 3-Year-Old Used Car | $25,000 (Paid) | Municipal Permit Fee (Based on depreciated MSRP) | Varies by MSRP | + Registration Fee (~$31), Title Fee ($25) |
| 6-Year-Old Used Car | $15,000 (Paid) | Municipal Permit Fee (Based on depreciated MSRP) | Varies by MSRP | + Registration Fee (~$31), Title Fee ($25) |
It's crucial to budget for these fees upfront. While you save on the sales tax itself, the initial out-of-pocket cost at the DMV can still be several hundred dollars. You must also pay the title fee and a registration fee, which is weight-based. When you go to register the car, bring the bill of sale, the title, and proof of New Hampshire residency. The process is straightforward, but knowing these costs ahead of time prevents surprises.
