No sales tax means real Black Friday savings for NH shoppers
Shopping in tax-free New Hampshire this Thanksgiving weekend would save New Englanders between $31–$40, based on projected spending during Black Friday and Cyber Monday.
According to an annual survey conducted by Deloitte Consulting LLP, consumers plan to spend an average of $567 over the course of Black Friday and Cyber Monday this year.
That’s a 13% jump from last year’s average.
The sales tax rate for each New England state (both statewide and local, if applicable) is:
- New Hampshire: 0%
- Maine: 5.50%
- Massachusetts: 6.25%
- Connecticut: 6.35%
- Vermont: 6.359%*
- Rhode Island: 7%
*Vermont is the only New England state that has local sales taxes, which average 0.359% (maximum of 1%). The combined sales tax rate in Vermont, on average, is 6.359%.
At those rates, the sales tax bill on $567 spent this weekend would be:
- New Hampshire at 0% = $0
- Maine at 5.50% = $31.19
- Massachusetts at 6.25% = $35.44
- Connecticut at 6.35% = $36
- Vermont at 6.359% = $36.06
- Rhode Island at 7% = $39.69
Spending Black Friday in neighboring Maine turns a $567 bill into a $598 bill. Shopping in Massachusetts turns it into $602, while shopping in Connecticut or Vermont would bring the total bill to $603.
Rhode Island tops the New England Christmas shopping naughty list this year with a total price tag of about $607.
But in New Hampshire, that bill stays put at $567.
The lack of a sales tax is one reason New Hampshire finished first in overall freedom (including No. 1 in economic freedom) in the Cato Institute’s Freedom in the 50 States report, as well as first in economic freedom among all North American jurisdictions in the Fraser Institute’s Economic Freedom of North America 2023.
Meanwhile, the five other New England states finished in the bottom half of both rankings.
New Hampshire shoppers are the real Black Friday winners: In addition to saving up to $40 in sales taxes versus their neighbors, the tax-free shopping environment has stimulated the development of outlet malls and other low-price shopping attractions that help to keep prices low throughout the year.
