The New Mexico state sales tax rate is 5.125% in 2026. When county and city taxes are added, the combined rate ranges from 5.125% in areas with no local additions up to 8.9375% in the highest-taxed jurisdictions. The most populated areas of New Mexico — including Bernalillo County — have a combined rate of 7.875%.
New Mexico uses a Gross Receipts Tax (GRT) rather than a traditional sales tax. The GRT applies to businesses but is typically passed on to consumers. Albuquerque and Santa Fe have some of the higher combined rates.
💡 Quick Reference: $100 purchase in New Mexico at the average combined rate costs approximately $107.03 after tax. Use the calculator above to find the exact amount for any county or city in New Mexico.
Groceries in New Mexico are exempt from New Mexico gross receipts tax. Clothing purchases are subject to gross receipts tax. Prescription drugs and medical devices are generally exempt from sales tax in New Mexico, as they are in most US states.
Common New Mexico Sales Tax Exemptions
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Prescription Medicine
Prescription drugs are fully exempt from New Mexico sales tax.
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Grocery Food
Unprepared groceries are exempt from New Mexico gross receipts tax in New Mexico.
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Manufacturing Equipment
Equipment used directly in manufacturing is generally exempt.
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Agricultural Supplies
Seeds, livestock, and farm feed are generally exempt in New Mexico.
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Clothing
Clothing is subject to gross receipts tax in New Mexico.
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Textbooks
Textbooks for educational use are often exempt or reduced rate.
How Does New Mexico Sales Tax Work?
Sales tax in New Mexico is collected at the point of purchase by retailers and remitted to the New Mexico Department of Revenue. The total rate you pay is the sum of the New Mexico state rate (5.125%) plus any applicable county and city rates in your location.
Businesses with a physical presence in New Mexico — including offices, warehouses, or employees — have sales tax nexus and must collect and remit New Mexico sales tax. Since the 2018 Supreme Court ruling in South Dakota v. Wayfair, remote sellers with $100,000+ in New Mexico annual sales or 200+ New Mexico transactions must also register and collect New Mexico sales tax even without a physical presence.
📅 New Mexico Sales Tax Filing: Returns are typically due on the 20th of the month following the reporting period. Filing frequency (monthly, quarterly, or annual) is assigned by the New Mexico Department of Revenue based on your sales volume. File and pay online through the New Mexico state tax portal.
The New Mexico state sales tax rate is 5.125% in 2026. With county and city additions, combined rates range from 5.125% to 8.9375% depending on your location. The most common combined rate in populated New Mexico counties is around 7.03%. Use the calculator above to find the exact rate for your specific county and city.
Groceries in New Mexico are exempt from New Mexico gross receipts tax. This applies to unprepared food items purchased at grocery stores. Prepared food (restaurant meals, hot food from a deli counter) is generally taxed at the full combined rate regardless of state grocery exemptions.
To calculate New Mexico sales tax, multiply your purchase amount by the combined rate (as a decimal). For example, a $200 purchase in Bernalillo County at 7.875%: $200 × 0.7875 = $15.75 in sales tax, making the total $215.75. Or simply use the free New Mexico sales tax calculator at the top of this page.
Yes, if you meet New Mexico’s economic nexus threshold. Remote sellers must collect and remit New Mexico sales tax if they have $100,000 or more in New Mexico sales or 200+ separate New Mexico transactions in a calendar year. This applies to all online sellers including Amazon FBA sellers, Shopify stores, and marketplace sellers. Marketplace facilitators like Amazon, Etsy, and eBay collect and remit on behalf of their sellers in New Mexico.
Most services are not subject to New Mexico sales tax, which primarily applies to the sale of tangible personal property. However, certain services are taxable in New Mexico — including some digital services, repair services, and services that are inseparable from a taxable product. Consult the New Mexico Department of Revenue or a tax professional for guidance on specific service types.
The highest combined sales tax rate in New Mexico is 8.9375%, which occurs in areas with the maximum local tax additions on top of the 5.125% state base rate. The lowest rate is the state base rate of 5.125% in areas with no local taxes. See the county-by-county table above for the exact rate in each area of New Mexico.