2024 Sales Tax by State – New Mexico

2024 New Mexico Sales Tax Fact Sheet For General Tangible Items

Last Tax Rate Changed on: July 1, 2024

New Mexico Sales Tax Rate Lookup by Address:

Unlike other states who charge sales tax, New Mexico charges gross receipts tax, a tax that is imposed on the total gross receipts of an individual or business engaging in business in NM. You may use USgeocoder Sales Tax Online Lookup Tool to search state-wide, county, local and special district sales tax (gross receipts tax) rates and tax reporting details for any physical address and PO Box in NM.

To learn more about the latest changes, bookmark 2024 New Mexico Sales Tax (Gross Receipts Tax) Rate Changes post.

New Mexico Sales Tax (Gross Receipts Tax) Components:
Statewide tax
Local district tax: County tax, Municipality tax and Special District tax

New Mexico Statewide Sales Tax (Gross Receipts Tax) Rate:
4.875%

Highest Total Local District Sales Tax Rate in New Mexico:
4.0625%

Highest Total Sales Tax (Gross Receipts Tax) Rate with Local District Sales Tax in New Mexico:
8.9375%

Municipalities (Incorporated Cities) with the Highest Sales Tax Rate (Gross Receipts Tax) in New Mexico:
Taos Ski Valley in Taos county (8.9375% Combined tax rate)

Number of Counties in New Mexico:
33

Number of Municipalities (Incorporated cities, Town & Villages) in New Mexico:
Approx. 107

Can I Use Zip Codes to Determine Correct Sales Tax (Gross Receipts Tax) Rates in New Mexico?
Not recommended

Zip codes can cross state, county, municipality and special district boundaries. In order to correctly calculate the sales tax rate, you should consider an address-based solution such as USgeocoder to identify if an address is in an incorporated city or an un-incorporated area, and whether it is within the boundary of a particular special district, so you can use such information to determine its sales tax rates.

Learn more about how postal zip codes, mailing cities and incorporated cities work. 

Can I Use City to Determine Correct Sales Tax (Gross Receipts Tax) Rates in New Mexico?

Not recommended

In New Mexico, many special districts only apply to certain areas in un-incorporated areas within counties. In addition, these special districts do not align with normal county or incorporated city boundaries. In order to correctly calculate the sales tax rate, you should consider an address-based solution such as USgeocoder to identify if the address is in an incorporated city or an un-incorporated area, and whether it is within the boundary of a particular special district, so you can use such information to determine its sales tax rates.

Does New Mexico Have Tax Codes for Tax Return Reporting Purpose?
Yes

Sales Tax (Gross Receipts Tax) Rate Update Schedule in New Mexico:
Update Frequency: Semi-Annually
Last Tax Rate Changed on: January 1, 2024

Does New Mexico Have an Origin-Based or Destination-Based Sales Tax (Gross Receipts Tax) Collection?

Destination

Origin-based: sales tax is charged based on where the seller is located.
Destination-based: sales tax is charged based on where the buy is located

Is New Mexico a Full Member of Streamlined State?
No

A streamlined Full Member State is a state that has been found to be in compliance with the Streamlined Sales and Use Tax Agreement (SSUTA) and its laws, rules, regulations, and policies and bring them into compliance are in effect. See details on Streamlined Sales Tax Governing Board’s website.

Does New Mexico Have Sales Tax (Gross Receipts Tax) Holidays?
Yes

Wayfair Sales Tax Implementation in New Mexico
Sales Thresholds: $100,000

Wayfair sales tax implementation applies to out-of-state sales, remote sales, Internet sales and online sales. The gross receipts tax rate used for out-of-state taxpayers is currently 5.125%. Within the state, the tax rate varies based on location. See details on https://www.tax.newmexico.gov/businesses/wp-content/uploads/sites/4/2021/09/FYI-206.pdf.

If your business is located outside New Mexico and sell research and development services that are considered professional services the product of which is initially used in New Mexico, use the state rate, 4.875%. See details on: https://www.tax.newmexico.gov/businesses/wp-content/uploads/sites/4/2022/12/FYI-105.pdf.

Does New Mexico Charge Sales Tax (Gross Receipts Tax) on Digital Goods?
Generally Yes
See details on: https://www.tax.newmexico.gov/businesses/wp-content/uploads/sites/4/2022/12/FYI-105.pdf

Does New Mexico Charge Sales Tax (Gross Receipts Tax) on Services?
Generally Yes
See details on: https://www.tax.newmexico.gov/businesses/wp-content/uploads/sites/4/2022/12/FYI-105.pdf..

Does New Mexico Charge Sales Tax (Gross Receipts Tax) on Shipping?
Generally Yes
See details on: https://www.tax.newmexico.gov/businesses/wp-content/uploads/sites/4/2022/12/FYI-105.pdf

New Mexico State Gross Receipts Tax (Gross Receipts Tax) Authority:
New Mexico Taxation and Revenue Department
Website: https://www.tax.newmexico.gov/businesses/wp-content/uploads/sites/4/2021/09/FYI-206.pdf

Looking for an Online Solution that provides real-time sales tax rates for your application? 

Try USgeocoder API. It provides all the information you get from USgeocoder Live Demo.  You can use it to lookup sales and use tax rate information one address at a time. However if you have a large number of addresses and would like to save time, USgeocoder can do it for you through batch processing service.

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SALES TAX BY STATE

STATES WITH STATE AND LOCAL SALES TAX:
Alabama, Alaska, Arizona, Arkansas, California, Colorado, Florida, Georgia, Hawaii, Idaho, Illinois, Iowa, Kansas, Louisiana, Minnesota, Mississippi, Missouri, Nebraska, Nevada, New Mexico, New York, North Carolina, North Dakota, Oklahoma, Ohio, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming

STATES WITH NO SALES TAX:
Delaware, Montana, New Hampshire, Oregon

STATES WITH ONLY STATE-WIDE SALES TAX AND NO LOCAL SALES TAX:
Connecticut (6.35%), District of Columbia (6.00%), Indiana (7.00%), Kentucky (6.00%), Maine (5.5%), Maryland (6.00%), Massachusetts (6.25%), Michigan (6.00%), New Jersey (6.625%), Rhode Island (7.00%)

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DISCLAIMERS:

SALES AND USE TAX INFORMATION ON THIS BLOG REFERS TO THE GENERAL SALES OF TANGIBLE PERSONAL PROPERTY. IN MANY STATES, THERE ARE DIFFERENT RATES FOR RENTAL, LEASING, AND TANGIBLE ITEMS SUCH AS VEHICLE, EQUIPMENT, FOOD, OR CLOTHING. SOME STATES HAVE DIFFERENT SALES TAX RATES THAN USE TAX RATES. EACH STATE HAS ITS OWN RULES ON EXEMPTIONS. PLEASE REFER TO THE SALES AND USE TAX LAW OF INDIVIDUAL STATES FOR DETAILS.

USGEOCODER LLC IS NOT ASSOCIATED WITH ANY GOVERNMENT AGENCIES IN ANY MANNER. ALL INFORMATION PROVIDED ON THIS WEBSITE IS PREPARED FOR GENERAL INFORMATIONAL PURPOSES ONLY. YOU SHOULD CONSULT YOUR OWN TAX, LEGAL AND ACCOUNTING ADVISORS TO ADDRESS YOUR SPECIFIC QUESTIONS AND BEFORE ENGAGING IN ANY TRANSACTION RELATED TO SALES AND USE TAX.