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 Rate

5.00%

Range of Local Rates

0.125% – 7.75%

Local Rates Apply to Use Tax

No

ECONOMIC NEXUS

7/1/2019

MARKETPLACE NEXUS

7/1/2019

Annual Back to School Holiday

August 5-7, 2022

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.

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
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 is considered one of the 10 states with the worst business tax climate for sales tax (reference: Tax Foundation).

State Notices & Resources for Remote Sellers

Use this state by state guide to find each state\’s initial guidance on how to proceed post-Wayfair, state resources such as FAQs, and any state activity such as going through a legislative process that impacts remote sellers.

Economic Nexus State by State Chart

Key information such as effective dates, thresholds, and includable sales for out-of-state sellers making sales into states that have enacted economic nexus legislation both before and after the South Dakota v. Wayfair Supreme Court decision.

New Mexico Implements Destination Based Sourcing Rules

On July 1, 2021, new rules for the New Mexico gross receipts tax came into effect, switching to destination-based sourcing for both New Mexico in-state and out of state sellers.

New Mexico Enacts Economic and Marketplace Nexus Legislation

New Mexico has enacted legislation with economic nexus and marketplace nexus provisions, effective July 1, 2019.

House Introduces Online Sales Simplicity and Small Business Relief Act of 2018

On September 13, 2018, Rep. Jim Sensenbrenner (R-WI) and additional U.S. House members introduced the Online Sales Simplicity and Small Business Relief Act of 2018.

Remote Seller Resources

Comprehensive list of resources for remote sellers following the South Dakota v. Wayfair Supreme Court decision – including state notices, videos, articles, training opportunities, and more.

U.S. Supreme Court Issues Decision In South Dakota v. Wayfair

On June 21, 2018, the U.S. Supreme Court issued its decision in the South Dakota v. Wayfair case, ruling in favor of South Dakota and overturning Quill’s physical presence rule.

South Dakota v. Wayfair Analysis & Predictions: Sales Tax Experts Weigh-In

Sales tax experts lend their insight into and predictions for one of the most important U.S. Supreme Court decisions regarding sales tax in decades, South Dakota v. Wayfair.

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.

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…

Senate Introduces Marketplace Fairness Act of 2015

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

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. If passed, the bill would authorize states that meet certain requirements to require remote sellers that do not meet…

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…

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.…