Are Medical Goods and Services subject to sales tax?
While New Mexico's sales tax generally applies to most transactions, certain items have special treatment in many states when it comes to sales taxes. This page describes the taxability of medical goods and services in New Mexico, including medical devices, medical services and medicines. To learn more, see a full list of taxable and tax-exempt items in New Mexico.
In the state of New Mexico, they are exempt only if they are delivered by a licensed practitioner incidental to the provision of a service and if the value of the device is included in the cost of the service.
In the state of New Mexico, all receipts received from payments by federal government are considered to be exempt. Health care practitioners may deduct from gross receipts payments they receive from managed health care providers or health care insurers for commercial contract services or Medicare Part C services provided by a health care practitioner. It must be noted that any receipts from fee-for-service payments by a health care insurer are not considered to be qualified.
Sales of medicines are subject to sales tax in New Mexico.
Back to New Mexico Sales Tax Handbook