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New Mexico Sales Tax

On this page you will find handy sales and use tax information about New Mexico.

How to use this page:

We’ve pulled in the information from all our Charts for a consolidated view by state.  Here you can see the sales tax rates and if the state has remote seller nexus rules. You can also see any sales tax holidays or amnesty programs that may exist, though these do not apply to all states.

Below the chart you can find any News & Tip item we have published that relates to New Mexico that you can filter by topic. This will help you get informed on current and past legislation that has passed in the state.

State Sales Tax Rates
State Rate

4.875%
Range of Local Rates

0.125% – 7.75%
Local Rates Apply to Use Tax

No
Remote Seller Nexus Rules
ECONOMIC NEXUS

7/1/2019
MARKETPLACE NEXUS

7/1/2019
Sales Tax Holidays
Annual Back to School Holiday

July 31, 2026 - August 2, 2026

1. Clothing and footwear items – less than $100 per item (excluding accessories, athletic or protective clothing or footwear)
2. School supplies – less than $30 per item
3. Computers, e-readers that have computing functions, and tablets – $1,000 or less per item
4. Certain computer related items – $500 or less per item
5. Book bags, backpacks, maps and globes – less than $100 per item
6. Handheld calculators – less than $200 per item

NOTE: Retailers are not required to participate.
Sales Tax Amnesty
Status

Inactive

Amnesty Filing Dates

June 7, 2010 - September 30, 2010

Go to New Mexico Amnesty Page
AMNESTY INCLUSION PERIODS

Tax obligations due before January 1, 2010.

TAX TYPES AND CONDITIONS

Individual and Business Taxes
AMNESTY BENEFITS

All penalties waived and interest waived if tax paid within 180 days.

Status

Inactive

Amnesty Filing Dates

November 8, 2018 - December 31, 2018

Go to New Mexico Amnesty Page
AMNESTY INCLUSION PERIODS

There is no specific mention by the state of any specific lookback period but New Mexico has a 3 year statute of limitation for when the tax payment was due.

TAX TYPES AND CONDITIONS

The Department will use the following criteria, as a guideline, to determine program eligibility:

• The taxpayer demonstrates a willingness and ability to comply with New Mexico’s tax laws;
• The taxpayer demonstrates an acceptable system of internal controls and business records (for most taxpayers, this may be income identified on the federal return and/or business income in New Mexico);
• The taxpayer’s resources are available to conduct the income disclosure

More details.
AMNESTY BENEFITS

Interest and penalties waived.

Administration Information
Streamlined Sales Tax Status

Advisory State
NUMBER OF TAXING AUTHORITIES

144 Sales Tax Jurisdictions
HOME RULE AUTHORITIES

N/A
Sales Tax Sourcing (Intrastate)

Origin
Sales Tax Return Due Date

The 25th of the month following the reporting period
Exemption Information
RESALE CERTIFICATE

New Mexico Non Taxable Transaction Certificate
TYPES OF EXEMPTIONS

Product types of exemptions: in general, construction materials and supplies are exempt; a manufacturer’s purchases are generally exempt

 

Entity types of exemptions: New Mexico or United States governments; 501(c)(3) organization; credit unions

 

New Mexico Nontaxable Transaction Certificates

History & Fun Facts
HISTORY

New Mexico imposes a gross receipts tax, not a traditional sales/use tax, and began imposing the tax in 1934. In 1939, the state added the Compensating Use Tax.
FUN FACTS
  • New Mexico’s annual sales tax holiday is unusual in that retailers are not required to participate in the holiday if they so choose.

Record Number of Sellers Participate in 2017 MTC Amnesty Program

The volume of applicants for the 2017 online marketplace seller tax amnesty program overwhelmed the Multistate Tax Commission.

Multistate Tax Commission Announces Tax Amnesty Program for Online Sellers

The MTC organized a tax amnesty program for online sellers, running from August 17 to November 1, 2017. The voluntary disclosure program allowed sellers to start remitting sales tax on future sales without penalty or liability for unpaid, prior accumulated sales tax in 25 participating states.

No Regulation Without Representation Act of 2017 Introduced

Under the proposed House bill, a state may tax or regulate a person’s activity in interstate commerce only when the person is physically present in the state during the period in which the tax or regulation is imposed.

Congress Introduces Marketplace Fairness Act of 2017 and Remote Transactions Parity Act of 2017

Introduced on April 27, 2017, the Marketplace Fairness Act of 2017, if enacted, would authorize states meeting certain requirements to require remote sellers that do not meet a small seller exception to collect their state and local sales and use taxes.

Online Sales Simplification Act of 2016 Discussion Draft is Introduced

The proposed legislation would implement a “hybrid origin” approach for remote sales. States could impose sales tax on remote sales if the origin state participates in a clearinghouse.

No Regulation Without Representation Act of 2016 Introduced

Taking the opposite approach of the Marketplace Fairness Act and Remote Transactions Parity Act, the proposed bill would limit the ability of states to require remote sellers to collect use tax. However, the bill failed to pass.

Congress Approves Permanent Extension of Internet Tax Freedom Act

Congress approved a permanent extension of the Internet Tax Freedom Act, signed into law by the President 02/24/16. More…

Internet Tax Freedom Act Extended Through October 1, 2016

The President signed an act to extend the Internet Tax Freedom Act through 10/01/16. More…

Internet Tax Freedom Act Extended Until December 11, 2015

U.S. House of Representatives passed a provision to extend the Internet Tax Freedom Act until 12/11/15. More…

House Introduces Remote Transactions Parity Act of 2015

U.S. House of Representatives introduced the Remote Transactions Parity Act of 2015 on 06/15/15. More…

New Mexico Issues Ruling on Home Sale and Construction Services

New Mexico issued a ruling about the application of gross receipts taxes on home sale and construction activities. More…

Senate Introduces Marketplace Fairness Act of 2015

On March 10, 2015, a bipartisan group of senators introduced the Marketplace Fairness Act of 2015.

Internet Tax Freedom Act Extended Until October 1, 2015, Permanent Extension Introduced

On December 16, 2014, President Barack Obama signed an act including a provision that extends the Internet Tax Freedom Act until October 1, 2015.

Internet Tax Freedom Act is Extended through December 11, 2014

President Barack Obama has signed federal legislation extending the Internet Tax Freedom Act through December 11, 2014.

New Mexico Enacts Deduction for Certain Dialysis Facility Services

Effective July 1, 2014, New Mexico has enacted a deduction from gross receipts tax for receipts from payments by the U.S. government or a U.S. government agency for medical and other health services provided by a dialysis facility to certain…

New Federal Digital Goods and Services Bill Proposed

Representative Lamar Smith (Republican, Texas) has introduced a bill to bar multiple taxes on digital goods and services. Smith had proposed an earlier bill which failed to pass. This bill is a revised version of the earlier bill. The proposed…

Services Sold for Resale Not Taxable in New Mexico

Sales of services by a waste management consulting service to a governmental waste authority for resale were determined to be deductible from New Mexico gross receipts for sales and use tax purposes. The sales were tax exempt because the consulting…

Federal Government Introduces New Remote Seller Bill

The federal Marketplace Fairness Act of 2013 was introduced in the House of Representatives and the Senate on February 14, 2013.

Sales of License to use Online Database Taxable in New Mexico

An out-of-state company that sells licenses to use its online database to New Mexico customers is subject to gross receipts tax on the sales. License to use qualifies as taxable intangible property. In this case, New Mexico customers buy licenses…

New Mexico Updates Guidance on NTTCs

The New Mexico Taxation and Revenue Department has updated its guidance on nontaxable transaction certificates (NTTCs). Effective April 7, 2011, sellers of tangible personal property for resale may support their gross receipts tax deductions for a sale with evidence other…

New Mexico Expands Deductions for Manufacturing Consumables

New Mexico has enacted legislation that expands deductions for manufacturing consumables. Receipts from selling tangible personal property consumed in the manufacturing of a product to a person engaged in the business of manufacturing that product and who delivers a nontaxable…

New Mexico Enacts Deductions for Construction-Related Services and Construction Equipment Leases

New Mexico has enacted legislation that provides a gross receipts deduction for construction-related services, provides a deduction for construction equipment leases, and expands deductions for manufacturing consumables. These deductions apply when the construction project is subject to the Gross Receipts…

Granting Amnesty Under SST Would Violate New Mexico Constitution

New Mexico has ruled that granting amnesty to a seller under the Streamlined Sales and Use Tax Agreement (SSUTA) for New Mexico gross receipts taxes owed on sales made during the period the seller was not registered in the state would violate the New Mexico Constitution.

New Mexico Discusses Taxability of Internet Stock Trades

The New Mexico Taxation and Revenue Department issued a letter ruling on the sales and use tax treatment of a securities broker’s services. Fees for internet and touchtone phone trades placed by customers assigned to a New Mexico location but…