New Mexico Sales Tax on Food and Meals New Mexico: Sales Tax Handbook

New Mexico:

Are Food and Meals 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 food and meals in New Mexico, including catering and grocery food. To learn more, see a full list of taxable and tax-exempt items in New Mexico.


Catering
TAXABLE
In the state of New Mexico, any gratuities that are distributed to employees are not considered to be taxable.

Grocery Food
EXEMPT
Sales of grocery food are exempt from the sales tax in New Mexico.



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Source: http://www.salestaxhandbook.com/new-mexico/sales-tax-taxability/food-and-meals