New Mexico Sales Tax Rates

Total Range for 2024

5.125%–9.0625%

new mexico taxation & revenue

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%.

Who Needs to Collect GRT in New Mexico?

Most businesses operating in New Mexico are required to collect GRT on their sales. This includes businesses with a physical presence in the state, as well as online retailers with sufficient connection (nexus) to New Mexico.

Is what you’re selling taxable in New Mexico?

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How to Collect GRT in New Mexico

  1. 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.
  2. Determine the Applicable GRT Rate: As mentioned earlier, use the GRT Rate Schedule to find the combined rate for your business location.
  3. Collect the GRT: Apply the appropriate GRT rate to the taxable sales price of your goods or services.
  4. 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.

FAQs

How often do you need to file sales tax returns in New Mexico?

Here are the filing options for gross receipts tax and their respective deadlines:

  • Monthly: If your combined taxes average more than $200 per month, or if you prefer to file monthly regardless of the amount due, your filing deadline is the 25th of the following month.
  • Quarterly: If your combined taxes for the quarter are less than $600 or average less than $200 per month in the quarter, your deadline is the 25th of the month following the end of the quarter. Quarters are January-March; April-June; July-September; October–December.
  • Semiannually: If your combined taxes are less than $1,200 for the semiannual period or average less than $200 per month for the 6-month period, your deadline is the 25th of the month following the end of the 6-month period. Semiannual periods are January-June; July–December.
  • Seasonal: This applies to businesses operating only during specific times of the year, such as firewood vendors or Christmas tree sales. You must indicate the month(s) for which you will be filing.
  • Temporary: Typically used for one-time filings, this option requires a start date and an end date, with a maximum duration of six months.
Do you need a seller/reseller permit?

In New Mexico, you don’t need a seller/reseller permit. Instead, you’ll need to register for a Gross Receipts Tax (GRT) account to collect GRT.

Are there any exceptions to the sales tax on digital products?

Yes, there are a few specific services that are exempt from the New Mexico Gross Receipts Tax (GRT). These include:

  • Educational services: Educational services provided by public and private schools, colleges, and universities.
  • Certain healthcare services: Services provided by hospitals, clinics, and licensed healthcare professionals, excluding some cosmetic procedures.
  • Religious services: Services provided by religious organizations, including church services and religious counseling.

For a complete and up-to-date list of GRT exemptions on services, you can visit the  New Mexico Taxation and Revenue Department website or consult with a tax professional like Yonda Tax.

Contact Yonda Tax Today

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