| County | State Rate | County Rate | Combined Rate | Major City |
|---|---|---|---|---|
| Bernalillo | 5.125% | 0.8125% | 5.9375% | Albuquerque |
| Catron | 5.125% | 0.5% | 5.625% | Reserve |
| Chaves | 5.125% | 1.3125% | 6.4375% | Roswell |
| Cibola | 5.125% | 1.5% | 6.625% | Grants |
| Colfax | 5.125% | 1.375% | 6.5% | Raton |
| Curry | 5.125% | 1.75% | 6.875% | Clovis |
| De Baca | 5.125% | 0.5% | 5.625% | Fort Sumner |
| Dona Ana | 5.125% | 0.75% | 5.875% | Las Cruces |
| Eddy | 5.125% | 1.375% | 6.5% | Carlsbad |
| Grant | 5.125% | 1.125% | 6.25% | Silver City |
| Guadalupe | 5.125% | 0.5% | 5.625% | Santa Rosa |
| Harding | 5.125% | 0.5% | 5.625% | Mosquero |
The state sales tax rate in New Mexico is 5.125%. However, the total sales tax rate can range from 5.125% to 8.6875% depending on the county and local taxes. New Mexico has a gross receipts tax, which is similar to a sales tax but is imposed on the seller instead of the buyer.
The gross receipts tax rate is 5.125%, but counties and municipalities can impose an additional tax, known as a “compensating tax,” which can range from 0.5% to 3.5625%. Some cities and counties also impose a “municipal local option gross receipts tax,” which can add an additional 0.25% to 1.5% to the total tax rate.
New Mexico exempts certain items from sales tax, including groceries, clothing, and prescription medication. However, some items, such as prepared food and non-prescription medication, are subject to sales tax.
The New Mexico Taxation and Revenue Department is responsible for collecting and administering sales tax in the state. Businesses with a physical presence in New Mexico, such as a store or office, are required to collect and remit sales tax on taxable sales. Out-of-state businesses that sell taxable goods or services to New Mexico customers may also be required to collect and remit sales tax if they have nexus in the state.
New Mexico has an economic nexus threshold of $100,000 in annual gross receipts. This means that out-of-state businesses that sell more than $100,000 in taxable goods or services to New Mexico customers in a calendar year are required to register for and collect sales tax.