Location:
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OLR Research Report


November 28, 2011

 

2011-R-0416

SALES AND HOTEL TAX RATES IN THE NORTHEAST

By: Rute Pinho, Associate Analyst

This report provides current sales and hotel tax rates in Connecticut and other Northeastern states. It updates OLR Report 2008-R-0695.

Table 1 below shows the tax rates in nine Northeastern states. The information in the table comes from tax tables and information published by CCH's State Tax Guide and state tax department websites.

Table 1: Sales and Hotel Tax Rates in the Northeast

State

Sales Tax Rate (State)

Sales Tax Rate (Local)

Hotel Tax Rate (State)

Hotel Tax Rate (Local)

Connecticut

6.35%

No tax

15%

No tax

Maine

5%

No tax

7%

No tax

Massachusetts

6.25%

0.75%

5.7%

Up to 6% (6.5% in Boston)

New Hampshire

No tax

No tax

9%

No tax

New Jersey

7%

No tax

8% to 12%

Up to 3%

New York

4%

Up to 4.875%

4%

Up to 5.875%

Pennsylvania

6%

1% or 2%

6%

1% or 2%

Rhode Island

7%

1%

12%

1%

Vermont

6%

1%

9%

1%

Source: CCH, State Tax Guide; State tax department websites

Notes on Sales Tax Rates

Connecticut: 7% tax on certain luxury goods

Maine: 7% tax on prepared foods, liquor served on-premises, and campground rentals

Massachusetts: Optional local tax applies only to sales of meals

New Hampshire: 9% tax on meals

New York: Local rates include county, city, and transit district taxing jurisdictions.

Pennsylvania: Local rate in Philadelphia is 2% through FY 14, after which it is 1%; Local rate in Allegheny County is 1%.

Rhode Island: 1% local tax applies only to sales of meals and beverages

Vermont: Certain municipalities may impose a 1% local sales tax and an additional 1% meal and beverages tax

Notes on Hotel Tax Rates:

Massachusetts: Boston, Cambridge, Chicopee, Springfield, West Springfield, and Worcester may add a 2.75% convention center financing fee.

New York: In addition to the combined state and local hotel tax rate of 9.875%, New York City charges a daily hotel fee of $1.50 per room.

Vermont: Local tax applies only in certain municipalities.

RP:ro