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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.

New Mexico Adopts Mandatory E-Filing Rules for Multiple Taxes.

A new regulation, effective June 30, 2010, has been adopted by the New Mexico Department of Revenue that establishes mandatory electronic filing requirements for gross receipts, withholding, and weight distance taxes. For returns due after August 1, 2010, the returns…

New Mexico Amnesty Program Enacted.

The New Mexico Taxation and Revenue Department has enacted a temporary tax amnesty program allowing individuals and businesses to avoid paying penalties and interest on any unreported or unassessed taxes due before January 1, 2010. The amnesty period runs from…

Online Travel Companies Not Liable for New Mexico Local Occupancy Tax on Mark-Up

The U.S. District Court for the District of New Mexico found that online travel companies were not liable for city-imposed additional New Mexico lodging tax on the difference between the total price of a hotel room collected from customers and…

Out-of-State Company’s Drop Shipment Sales Not Taxable in New Mexico

A taxpayer, drop ships tangible personal property to its New Mexico customers, was not liable for New Mexico gross receipts because it did not have nexus in New Mexico. The taxpayer’s sales agreement with its customers provides that the transfer…

New Mexico Rules on Taxability of In-Flight Internet Access

The New Mexico Taxation and Revenue Department issued guidance regarding fees collected for use of wireless internet access while aboard an aircraft. The state claimed that providing internet services was a taxable service and, therefore, gross receipts tax would apply…

New Mexico Discusses Taxability of Broadcast and Online Television Advertisements

Receipts from a cable and satellite television network’s sales of broadcast time to out-of-state advertisers are deductible from gross receipts for tax purposes. However, gross receipts tax is due on receipts from sales of broadcast time to advertisers located in…

U.S. Supreme Court Denies Request to Decide if Non-Sales Acts by Third-Party Creates Nexus in New Mexico

The U.S. Supreme Court has denied review of a taxpayer’s request to determine if the in-state post-sale service activities of a third-party company allow New Mexico to impose gross receipts tax on an out-of-state computer seller’s sales into the state.…

New Mexico Out-of-State Computer Sales Subject to Tax

The New Mexico Court of Appeals found that a taxpayer had sufficient nexus in the state and was subject to its gross receipts tax on its sales of computers via the Internet, mail, and telephone. The taxpayer argued that the…

New Mexico Enacts Advanced Energy Credit

New Mexico has enacted legislation, effective July 1, 2007, creating the Advanced Energy Tax Credit which is available against the gross receipts tax, the compensating tax or the withholding tax. The credit may be claimed by a taxpayer who holds…

New Mexico Gives Additional Instructions on Tax Holiday

New Mexico issued an interpretation of its annual sales tax holiday. For example, items normally sold as a unit cannot be priced separately and sold individually to qualify for exemption. Items bought with a rain check during the holiday period…

New Mexico sales tax holiday: Aug. 5 – Aug. 7, 2005

Clothing and footwear less than $100. Computers less than $1000. Computer peripherals less than $500. School supplies. Does not include protective or athletic gear. Does not include watches, radios, phones, copiers, office equipment, office fixtures. See Details

New Mexico deduction for sale of food at retail stores.

Effective January 1, 2005, the New Mexico gross receipts (sales) tax on food is eliminated. The deduction can be applied to the sale of food that is not already exempt or deductible and is separately stated when purchased in a…

New Mexico to remove certain medical services taxes.

Effective January 1, 2005, receipts for commercial contract services or Medicare part C services when received from a health care insurer or managed health care organization may be deducted from gross receipts as long as the services are within the…

New Mexico gross receipts act amended.

Because of the many changes made annually to the Gross Receipts and Compensating Act, a new measure to avoid these tracking and signing order problems has been passed. Effective July 1, 2003, there will be a new definition of “gross…

New Mexico city ordinance preempted by federal law.

In 1998, Santa Fe enacted a city ordinance which required owners of telecommunication facilities to get lease approval by the city, making sure it was “in the best interest of the public”. Section 253 of the Federal Telecommunications Act of…

New Mexico subcontractor required to pay gross receipts (sales) tax.

A subcontractor was required to remit sales tax because of its inability to provide proof of nontaxable transaction certificates (NTTCs) in a timely manner. These certificates were needed to support deductions previously claimed. The subcontractor argued that the general contractors…