New Mexico has a 5% gross receipts tax. Localities can add up to 3.813%, making the average rate 7.72%. This tax applies to all goods and services unless exempted. Foods to be prepared at home are exempted.
Guide for Small Businesses
We designed this guide to help small businesses in New Mexico navigate filing, payments, exemptions, and more. Sales tax can be challenging for busy entrepreneurs. This guide offers essential information with friendly advice to conquer sales tax confidently.
Tax Rates and Exemptions
The state sales tax rate is 4.875%. With local taxes, rates range from 5.125% to 9.0625%. On average, New Mexico ranks 20th highest for combined state and local sales tax.
The gross receipts tax applies to all goods and services unless exempted. Any revenue from business activities is taxed, including shipping and handling.
New Mexico first adopted a gross receipts tax in 1933. Rates have risen to 5.125% state plus 0% to 3.9375% local. As a business owner, you collect tax from purchasers to pass along to the tax authority.
Sales tax exemption forms can be downloaded from the New Mexico Taxation and Revenue Department. Use our calculator to lookup sales tax rates and amounts due.
Even online businesses shipping to New Mexico residents must collect sales tax. A resale certificate allows buying items without sales tax for resale.
New Mexico is considered a destination-based sales tax state. Rates are calculated based on delivery destination. The state rate is 5.125%. Shipping charges are usually taxable.
So whether you have a New Mexico business or ship there sometimes, it’s important to know your sales tax responsibility. This guide tells you what you need to know and directs you to resources.