Tax Exemptions in New Mexico
Many states exempt nonprofits from sales tax. New Mexico considers tax-exempt if the federal government granted the status under Section 501(c). Charities automatically exempt in New Mexico, so no need to apply for exemption.
Exempt Organizations and Taxes
Once obtain federal 501(c)(3) status, your nonprofit automatically exempt from New Mexico Corporate Income Tax and Franchise Tax.
Sales Tax and Exemptions
Individuals occasionally selling at garage sales, flea markets or online exempt from sales tax permit if not regular business activity. Certain items may be exempt from the sales tax to all consumers in New Mexico.
Tax Information in New Mexico
New Mexico is among the "tax-friendly" states of the U.S., offering numerous economic incentives and tax breaks on personal and corporate income. Residents pay state personal income tax. Military salaries of residents exempt since 2007. Nonresidents not subject to income tax.
What are the exemptions in New Mexico law?
Section 7-9-41.3 – Exemption; receipts from sales by disabled street vendors. Section 7-9-41.4 – Exemption; officiating at New Mexico activities association-sanctioned school events. Section 7-9-41.5 – Exemption; nonprofit hospitals from local option gross receipts taxes.
Tax Refunds and Regulations
Foreigners traveling in Mexico can obtain a tax refund on purchases if returning home by air or sea and possess receipts from purchases.
Information on Applying for Exemption
Get information on applying for New Mexico nonprofit tax exemption. Harbor Compliance can apply for and obtain your nonprofit tax exemptions in every state.
Tax Requirements and Church Exemptions
For tax purposes, a church is a place of worship including Christian churches, temples, mosques, and synagogues. Conventions and associations of churches also included. Exempting churches from taxation seen as clear separation of church and state.