Updated July 1, 2025

Key PointsA stylized 3D topographic map of New Hampshire on an 800×600 canvas. The state’s terrain is rendered with a smooth gradient—from green in low-lying areas through yellow and orange to brown at higher elevations—with subtle contour lines and rivers visible. The map floats against a muted blue-gray background. In bold white uppercase letters across the lower third of the image is the title “NEW HAMPSHIRE CANNABIS TAX GUIDE.”

  • Adult-use cannabis sales in New Hampshire are taxed under the Meals & Rooms (M&R) tax at 8.5% statewide; there are no local add-ons.

  • New Hampshire does not impose a separate cannabis excise tax — cannabis falls under RSA Chapter 78-A (Meals & Rooms).

  • Medical cannabis sales to registered qualifying patients (or their designated caregivers) are exempt under RSA 78-A:6-e.

  • IRC Section 280E applies at both the federal and state level; New Hampshire has not decoupled from 280E, so only Cost of Goods Sold may be deducted for state Business Profits Tax (BPT).

  • Monthly filings and payments through the NH Department of Revenue Administration’s Granite Tax Connect portal are mandatory — late or inaccurate returns incur interest (12% APR) and penalties (up to 10% per month).

Understanding New Hampshire’s Cannabis Tax Structure

New Hampshire applies its existing Meals & Rooms tax (Chapter 78-A) to adult-use cannabis sales at 8.5% of the total sales price. Medical cannabis sold by registered Alternative Treatment Centers to qualifying patients is exempt under RSA 78-A:6-e. There is no separate potency- or weight-based cannabis excise tax; all sales are reported under the M&R framework, and strict track-and-trace reporting is required.

280E Decoupling at the State Level

  1. New Hampshire does not allow state-level deductions beyond the Cost of Goods Sold for cannabis businesses — IRC 280E restrictions carry through to the state BPT.

  2. Operating expenses such as payroll, rent, and utilities cannot be deducted against state taxable income.

  3. Only Cost of Goods Sold may be deducted when calculating Business Profits Tax.

  4. No legislative changes for 280E relief are scheduled as of July 1, 2025.

Cannabis “Excise” Tax: What Retailers Need to Know

  • 2025 Rate: 8.5% under the Meals & Rooms tax

  • Uniformity: Single statewide rate; no local variations

  • Who Pays: Retailers selling adult-use cannabis to consumers

  • Medical Sales: Exempt for qualifying patients/designated caregivers under RSA 78-A:6-e

Sales / Gross Receipts Tax: Local Impact

  • State Base Rate: 8.5% (Meals & Rooms tax)

  • Local Add-Ons: None; municipalities do not levy additional cannabis sales taxes

Medical Cannabis: Tax Exemptions and Requirements

  • Excise Tax: No separate tax; medical sales are exempt under RSA 78-A:6-e

  • Sales/GRT: Exempt when sold to qualifying patients or designated caregivers

  • Documentation: Alternative Treatment Centers must maintain patient registry records and report all medical sales monthly via DRA Form MS-1

Filing and Payment Deadlines

  • Frequency: Monthly for both adult-use and medical reporting

  • Forms: DRA Form MS-1 (Meals & Rooms & Cannabis Tax Return)

  • E-Filing: Required through NH DRA’s Granite Tax Connect e-portal

  • Zero-Sales Filings: Returns must be filed even if no taxable or exempt sales occurred

Penalties and Compliance Risks

  • Late Filing: Interest at 12% APR plus a penalty of up to 10% of the tax due per month

  • Noncompliance: Risk of DRA suspension or revocation of cannabis sales license

  • Audit Risk: High — DRA conducts periodic reviews of M&R and cannabis sales records

How to Calculate Your Total Cannabis Tax Obligation

  1. Identify your total retail sales amount.

  2. Multiply by 8.5% to determine the tax due.

  3. Add the tax to the consumer price or show it separately on receipts.

  4. Exclude medical sales according to patient registry limits.

Key State Cannabis Trade Associations

Government Contact List

NH Cannabis Commission – Theraputic Cannabis

  • Main Phone: (603) 271-9333

  • Email: TCP@dhhs.nh.gov

  • Address: 57 Regional Drive, Concord, NH 03301

NH Department of Revenue Administration

New Hampshire Cannabis Taxes Financial Calendar

Tax Type Rate/Details Applies To Filing Frequency Due Date
Adult-Use Cannabis Sales (M&R) 8.5% of total sales price Retail cannabis establishments Monthly 15th of the following month
Medical Cannabis Exempt Registered qualifying patients Monthly 15th of the following month
Business Profits Tax (BPT) 7.6% rate; only Cost of Goods Sold deductible All cannabis businesses (state level) Annual April 15

For informational purposes only. Consult a qualified tax professional before making any business, taxation, or compliance decisions.