New Mexico Sales Tax

The current state sales tax rate in New Mexico (NM) is 5.125 percent. The total tax rate might be as high as 9.0625 percent depending on local governments. New Mexico has a gross receipts tax that applies to anyone doing business in the state. In most cases, a business will pass the tax on to the customer in the form of a sales tax. Read the New Mexico Gross Receipts Tax Overview for additional information. Other, local-level tax rates in New Mexico are relatively complex when compared to other states’ local-level tax rates. The municipal, county, school, transportation, and SPD (special purpose district) levels in New Mexico may all levy a sales tax. In some places, the combined rates range from the state rate of 5.125 percent to 8.8675 percent. State legislation determines the state’s share of the gross revenues tax. Changes are only made once a year, in July. County commissioners are in charge of the county share of the gross receipts tax, while municipal councils are in charge of the municipal portion. The changes to the county and municipal governments normally take effect in January or July of each year. The firm must track and manage rate changes through research because new rate schedules are released twice a year and the government does not send out separate notices when changes occur. Businesses that sell property in New Mexico, lease or license property used in New Mexico, grant a right to use a franchise used in NM, perform services, or sell research and development services performed outside of NM when the product is first used in NM are all subject to the New Mexico gross receipts tax. Anyone doing business in New Mexico must register with the Department of Taxation and Revenue (TRD).

Sales Tax Rates in New Mexico by County

In New Mexico, when do you have to charge sales tax?

If your business has a sales tax nexus in New Mexico, you must charge sales tax. In different states, the term “sales tax nexus” signifies different things. It could be having a physical site (e.g., a brick and mortar business) or having someone working for you in the state. It can also refer to having a ‘affiliate’ or ‘click through’ sales tax nexus in the case of ecommerce.

Check the New Mexico government’s sales tax website to see if you should be charging sales tax in your state.

In New Mexico, which items are exempt from sales tax?

Prescription medications, for example, are free from sales tax in New Mexico. There are also New Mexico sales tax exemptions that can be used if the seller or buyer meets specific requirements.

Check the New Mexico government’s tax website for a complete list of exemptions.

What is New Mexico known for?

New Mexico is known for:

• Diverse landscape
• Birthplace of the nuclear bomb
• Ancient Pueblo People
• Los Alamos National Laboratory
• The Roswell Incident
• White sands

New Mexico Fun Facts

• New Mexico was named by the Spanish for lands north of the Rio Grande (Nuevo Mexico). The word Mexico is named after Mexitli, an Aztec war god. Mexico means ‘place where Mexitli lives.”
• At 7,198 feet above sea level, Santa Fe is the highest capital city in the United States.
• New Mexico has the largest Hispanic population of all the states. As of 2010, about 46.3% of the state’s population are Hispanics.
• Micro-Soft was founded on April 4, 1975 by Bill Gates and Paul Allen in Albuquerque, New Mexico. The company moved to Bellevue, Washington, in 1979 since it was hard to recruit top programmers to Albuquerque.
• The nine-day Albuquerque International Balloon Fiesta held each October is the largest balloon convention in the world. 
• New Mexico’s the only state with an official question: “Red or green?”
• Founded in 1610, Santa Fe, New Mexico is the oldest capital city in the United States.
• The world’s first detonation of a nuclear weapon took place on July 16, 1945, in the Jornada del Muerto desert about 35 miles southeast of Socorro, New Mexico. 
• New Mexico is one of the states that form the Four Corners, the only location in the United States where four states intersect at one point. The other three states are Arizona, Colorado, and Utah.
• New Mexico is the only state in the United States where lawmakers don’t receive salaries. New Mexico’s lawmakers do enjoy a generous pension plan.

Tourist Attractions in New Mexico

• ABQ BioPark: Aquarium in Albuquerque, New Mexico.
• Albuquerque Museum: Art and history museum in Albuquerque, New Mexico.
• Angel Fire Resort: Ski resort in Angel Fire, New Mexico.
• Bandelier National Monument: National monument near Los Alamos, New Mexico.
• Carlsbad Caverns National Park: National park in southern New Mexico.
• Cliff’s Amusement Park: Amusement park in Albuquerque, New Mexico.
• Georgia O’Keeffe Museum: Museum in Santa Fe, New Mexico.
• Indian Pueblo Cultural Center: Museum in Albuquerque, New Mexico.
• Karl G. Jansky Very Large Array: Radio astronomy observatory on the Plains of San Agustin, about 50 miles west of Socorro, New Mexico.
• Loretto Chapel: Wedding chapel famous for its Miraculous Staircase, located in Santa Fe, New Mexico.
• Los Alamos: City in New Mexico, home to the Los Alamos National Laboratory, the research center for the Manhattan Project.
• Petroglyph National Monument: National monument in Albuquerque, New Mexico.
• Philmont Scout Ranch: Mountain ranch in Cimarron, New Mexico.
• Sandia Mountains: Mountain range near Albuquerque, New Mexico.
• Sandia Peak Tramway: Aerial tramway in Albuquerque, New Mexico.
• Taos Pueblo: Ancient pueblo (Native American community) near Taos, New Mexico.
• Taos Ski Valley: Ski resort in Taos County, New Mexico.
• White Sands National Monument: National monument located in southern New Mexico.