Total Range for 2025
| Base state sales tax rate | 5.13% | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate |
| Local rate range | 0%-3.9375% | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate |
| Total rate range | 5.125%-9.0625% | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate |
| Economic sales nexus threshold | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | |
| Transactions threshold | N/A | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate |
| Sales tax return filing due date | 25th of following month | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate |
The base state sales tax rate in New Mexico is 5.125%, but since the local rates range from 0-3.9372% the total sales tax range is 5.125-9.0625%.
How to calculate your sales tax rate
Use our online sales tax calculator to determine the combined state and local sales tax rate for each location where you have a physical or economic nexus. Just enter your state and ZIP code to get your sales tax rate.
Example of using the sales tax rate in a tax calculation:
The GRT Rate
New Mexico, unlike most states, doesn’t have a traditional sales tax. Instead, it has a Gross Receipts Tax (GRT) applied to the receipts of most businesses operating in the state. In practice, this tax often resembles a sales tax because businesses typically pass it on to the consumer as part of the selling price.
The New Mexico Gross Receipts Tax rate varies depending on the location of the business. The total rate is a combination of:
- State Base Rate: Currently, the base GRT rate throughout New Mexico is 5.125%.
- Local Rates: Many counties, municipalities, and special districts in New Mexico impose additional local GRT rates on top of the base rate.
Because of these varying local rates, the combined GRT rate you need to charge can range from 5.125% to as high as 9.0625%.
Nexus: Who Needs to Collect GRT in New Mexico?
If you’re selling goods and services in New Mexico then sales tax might apply! To determine your obligation, you need to understand “nexus,” which ties businesses to states for tax purposes.
Two types of nexus exist:
- Physical Nexus: Having a physical presence, like an office, warehouse, or employees in New Mexico, triggers this type. If you do, you likely need to collect sales tax.
- Economic Nexus: This kicks in when your sales within New Mexico exceed a certain economic threshold. Even without a physical presence, surpassing this threshold requires collecting sales tax.
Services
- Generally, most services performed in New Mexico are subject to GRT. This includes professional services like consulting, legal fees, and repairs, as well as personal services like haircuts and car washes.
- There are a few exceptions for specific services that are not taxable in New Mexico. These include educational services, certain healthcare services, and religious services.
Goods
- Most tangible personal property sold in New Mexico is taxable under the GRT. This includes common items like furniture, sporting goods, building materials, etc.
- Most unprepared food items for home consumption are exempt from GRT in New Mexico. However, prepared meals (restaurant food) and certain prepackaged snacks are taxable.
Freight/Shipping
- If your shipping and transportation charges are separately stated on the invoice (not included in the sales price of the product), then they are generally not taxable in New Mexico.
- If the shipping and transportation charges are included in the sales price of the product and not separately stated, then they are considered taxable along with the product itself.
Clothing
- In New Mexico, clothing is generally taxable. This applies to most items of clothing, including footwear.
Electronics
- Electronics are subject to sales tax
SaaS
- SaaS is taxable in New Mexico.
Digital Products
- Digital goods are generally subject to New Mexico GRT.
Software
- Prewritten computer software delivered electronically is also considered taxable.
How to Collect GRT in New Mexico
- Register for a Gross Receipts Tax Account: The first step is to register for a GRT account with the New Mexico Taxation and Revenue Department.
- Determine the Applicable GRT Rate: As mentioned earlier, use the GRT Rate Schedule to find the combined rate for your business location.
- Collect the GRT: Apply the appropriate GRT rate to the taxable sales price of your goods or services.
- File GRT Returns and Remit Tax: New Mexico businesses are required to file GRT returns and submit the collected tax on a regular basis. The filing frequency depends on your business’s total GRT liability.
How to get a sales tax permit/license in New Mexico?
To obtain a Gross Receipts Tax (GRT) permit in New Mexico, you can register either online or by paper application. We recommend using the online method through the New Mexico Taxation and Revenue Department’s website via the New Mexico Taxpayer Access Point (TAP), as it is generally processed faster and provides immediate confirmation upon submission.
If you prefer, you can also complete a paper application and submit it by mail. Regardless of the method, you’ll need to provide details such as your business name, address, Federal Employer Identification Number (FEIN) or Social Security Number (SSN), and the nature of your business activities.
When are GRT returns due in New Mexico?
In New Mexico, GRT returns are due on a monthly, quarterly, or annual basis, depending on your assigned filing frequency. The due dates are:
- Monthly: Returns are due on the 25th day of the month following the reporting period. For example, the return for July is due by August 25th.
- Quarterly: Returns are due on the 25th day of the month following the end of the quarter. For example, the return for the first quarter (January-March) is due by April 25th.
- Annually: Returns are due on January 25th of the following year.
If the due date falls on a weekend or holiday, the return is due on the next business day. It’s important to file your returns on time to avoid penalties and interest.
Are there any exemptions to GRT tax in New Mexico?
Yes, New Mexico provides several exemptions from Gross Receipts Tax (GRT). Key exemptions include:
- Certain Types of Sales:
- Items purchased for resale in the regular course of business are exempt if the buyer provides a valid resale certificate.
- Sales to federal, state, and local government agencies are generally exempt.
- Specific Goods and Services:
- Sales of certain food items for home consumption, prescription drugs, and some medical services are exempt.
- Sales of certain agricultural products and manufacturing machinery or equipment used directly in manufacturing are exempt.
- Nonprofit Organizations:
- Sales made to qualifying nonprofit organizations may be exempt, provided they have the appropriate exemption certificates.
- Certain Professional Services:
- Certain educational and medical services are exempt from GRT.
