Definition: What Reverse Sales Tax Means in New Hampshire
Reverse sales tax means starting with a final amount that already includes tax and working backward to find the original pre-tax amount. The normal formula is pre-tax price = total paid / (1 + tax rate), then tax amount = total paid - pre-tax price.
In New Hampshire, the default general sales tax rate is 0.00%, so the reverse calculation usually confirms that the total paid is already the pre-tax price. If a receipt includes a special lodging, rental, food, excise, or local charge, enter that specific rate to remove it from the total.
Important New Hampshire sales tax note: New Hampshire does not levy a general statewide sales tax. If a receipt includes local, lodging, rental, excise, or other tax-like charges, use the specific rate printed on the receipt.
