New Mexico: Sales Tax Handbook
New Mexico Sales Tax Rate
|State Sales Tax||Local Sales Tax Range||Average Local Tax||Average Combined Tax||Max Combined Tax|
|5.125%||0.375% - 7.125%||1.907%||7.032%||12.25%|
2016 New Mexico Sales Tax Handbook
New Mexico Table of Contents
- List of Local Sales Tax Rates
- Sales Tax Calculator
- Sales Tax Exemption Certificates
- Sales Tax Info For Businessowners
- Taxable vs. Non-Taxable Purchases
- Sales Tax on Cars & Vehicles
- More Information
New Mexico's Gross Receipts Tax By The Numbers:
New Mexico has a lower-than-average state sales tax rate of 5.125%, but the actual combined sales tax rates are higher than average when local sales taxes from New Mexico's 112 local tax jurisdictions are taken into account.
Rankings by Average State + Local Sales Tax:
Ranked 20th highest by combined state + local sales tax
Ranked 6th highest by per capita revenue from state + local sales taxes ($1,407 per capita)
Rankings by State Sales Tax Only:
Ranked 11th highest by state sales tax rate
Ranked 17th highest by per capita revenue from the statewide sales tax ($944 per capita)
Printable PDF New Mexico Sales Tax Datasheet
New Mexico has a statewide gross receipts tax rate of 5.125%, which has been in place since 1933.
Municipal governments in New Mexico are also allowed to collect a local-option sales tax that ranges from 0.375% to 7.125% across the state, with an average local tax of 1.907% (for a total of 7.032% when combined with the state sales tax). The maximum local tax rate allowed by New Mexico law is 7.125%. You can lookup New Mexico city and county sales tax rates here.
This page provides an overview of the sales tax rates and laws in New Mexico. If you are a business owner and need to learn more about things like getting a sales tax permit, filing a sales tax return, or making tax-exempt purchases for resale see the New Mexico Sales Tax Handbook's Table of Contents above.
What is exempt from sales taxes in New Mexico?
Many states have special sales tax rates that apply to the purchase of certain types of goods, or fully exempt them from the sales tax altogether. Here's how New Mexico taxes five types of commonly-exempted goods:
For more details on what types of goods are specifically exempt from the New Mexico sales tax see New Mexico sales tax exemptions. To learn more about what types of transactions are subject to the sales tax to begin with, see what purchases are taxable in New Mexico? Taxation of vehicle purchases in particular are discussed in the page about New Mexico's sales tax on cars.
Are services subject to sales tax in New Mexico?
"Goods" refers to the sale of tangible personal property, which are generally taxable. "Services" refers to the sale of labor or a non-tangible benefit. In New Mexico, services are taxable unless specifically exempted.
About the New Mexico Sales Tax
While the state of New Mexico does not officially have a sales tax system, the state applies a gross receipts tax instead. Unlike a usual sales tax system, this means that the seller is taxed instead of the purchaser.
Is the New Mexico Sales Tax Destination-Based or Origin-Based?
New Mexico is a origin-based sales tax state, which means sales tax rates are determined by the location of the vendor, not by the location of the buyer. The origin-based method of determining sales tax is less complicated for vendors than destination-based sales tax, because all in-state buyers are charged the same sales tax rate regardless of their location.
Is New Mexico a Streamlined Sales Tax State?
New Mexico is not a member of the Streamlined Sales and Use Tax Agreement. The SSUTA is an agreement adopted by about half of states that ensures that their sales tax laws are simplified to lower the costs associated with compliance.
Contact the New Mexico Tax Compliance Bureau
The New Mexico Gross Receipts Tax is administered by the New Mexico Tax Compliance Bureau. You can learn more by visiting the sales tax information website at www.tax.newmexico.gov.
Phone numbers for the Gross Receipts Tax division of the Tax Compliance Bureau are as follows:
- Local Phone: (505) 841-6200
- Toll-Free Phone: (866) 809-2335
Learn More: Our Book Recommendations
If you would like to learn more about how to manage your New Mexico sales taxes, we recommend the following books:
Simplify New Mexico sales tax compliance! We provide sales tax rate databases for businesses who manage their own sales taxes, and can also connect you with firms that can completely automate the sales tax calculation and filing process. Click here to get more information.
New Mexico Sales Tax Rates by Zip Code:
Need an updated list of New Mexico sales tax rates for your business? Download our New Mexico sales tax database!