New Mexico Sales Tax Guide 2025: A Step-by-Step Guide for Businesses

New Mexico Sales Tax: 2025 Overview

Sales tax in New Mexico is implemented as a Gross Receipts Tax (GRT) with a 5.375% statewide rate in 2025, plus local rates that can bring the total to 9.5%. New Mexico does not participate in the Streamlined Sales Tax initiative (SSUTA), and GRT-related legislation applies to both goods and services, making it broader than traditional sales taxes.

The state’s decentralized tax system requires precise rate calculations based on location.

New Mexico Sales Tax Due Date

In New Mexico, sales tax due dates depend on your assigned filing frequency, which is based on the amount of gross receipts your business collects. Here’s a breakdown:

Filing Frequency	Due Date
Monthly	Due on the 25th of the month following the taxable month.
Quarterly	Due on the 25th of the month following the taxable quarter.
Annually	Due on January 25th of the following year.

Key Points

• If the due date falls on a weekend or holiday, the payment is typically due on the next business day.
• Late filings or payments may incur penalties and interest, so timely submission is essential.
• All Gross Receipts Tax (GRT) returns must be filed electronically through the New Mexico Taxpayer Access Point (TAP).

New Mexico Sales Tax Rate in 2025

In New Mexico, the state imposes a Gross Receipts Tax (GRT) of 5.375%, with local jurisdictions adding their own rates, resulting in combined rates up to 9.5% in some areas.

Tax Type	Rate	Description
State GRT	5.375%	Applies to most sales of goods, services, leases, and rentals statewide.
Local GRT	Varies by Location	Additional GRT imposed by municipalities and counties, ranging from 0.125% to 4.125%.

Notes

• The combined GRT rate depends on the location of the transaction, varying significantly across cities and counties.
• The GRT applies to a broader range of transactions compared to traditional sales taxes, including many services.

2025 New Mexico Local GRT Rates Table

Below is a table highlighting the 20 largest cities in New Mexico along with their respective local and combined Gross Receipts Tax (GRT) rates:

City	Local GRT Rate	Total GRT Rate
Alamogordo	1.8125%	8.1875%
Albuquerque	1.3125%	7.8750%
Carlsbad	2.0625%	8.6250%
Clovis	1.6875%	8.2500%
Farmington	1.8125%	8.3750%
Gallup	2.1250%	8.6875%
Hobbs	2.0625%	8.6250%
Las Cruces	1.9375%	8.5000%
Las Vegas	2.0000%	8.5625%
Los Lunas	1.8750%	8.4375%
Portales	1.5625%	8.1250%
Rio Rancho	1.5000%	8.0625%
Roswell	1.8750%	8.4375%
Santa Fe	2.0625%	8.6250%
Silver City	2.0000%	8.5625%
Socorro	1.8125%	8.3750%
Taos	2.0625%	8.6250%
Truth or Consequences	2.1250%	8.6875%
Tucumcari	2.0000%	8.5625%
Valencia	1.9375%	8.5000%

Notes

• New Mexico imposes a statewide Gross Receipts Tax (GRT) of 5.375%, with local jurisdictions adding their own rates.
• The GRT applies to the sale of goods, services, leases, and rentals, making it broader than a traditional sales tax.
• The total GRT rate combines the state and local rates, varying significantly across cities and counties.
• For the most accurate and up-to-date information, visit the New Mexico Taxation and Revenue Department.

New Mexico Sales Tax Calculator Example with Customers in Multiple Locations

An online retailer based in Arizona establishes economic nexus in New Mexico by exceeding $100,000 in annual sales or 200 transactions, requiring them to collect and remit Gross Receipts Tax (GRT) for sales made to New Mexico residents. The retailer makes sales to customers in multiple cities, each with different local GRT rates.

Detail	Description
Business	Online retailer based in Arizona with economic nexus in New Mexico.
Customer Purchases	Customer A in Albuquerque $1,200 total, $800 taxable, $400 exempt (e.g., wholesale or services). Customer B in Santa Fe $900 total, $600 taxable, $300 exempt. Customer C in Las Cruces $500 total, $400 taxable, $100 exempt.
Customer Locations	Albuquerque 7.875% total GRT rate. Santa Fe 8.4375% total GRT rate. Las Cruces 8.5% total GRT rate.

New Mexico Sales Tax Calculations

Customer	Taxable Amount	Total GRT Rate	Total Tax Due
Customer A	$800	$800 × 7.875% = $63.00	$63.00
Customer B	$600	$600 × 8.4375% = $50.63	$50.63
Customer C	$400	$400 × 8.5% = $34.00	$34.00

Total Sales Tax Due in New Mexico

$63.00 (Customer A) + $50.63 (Customer B) + $34.00 (Customer C) = $147.63

Key Considerations for Businesses

• Location Accuracy: New Mexico’s Gross Receipts Tax (GRT) is based on the location of the transaction. Ensure accurate customer addresses to apply the correct local GRT rates.
• Exemption Management: GRT exemptions include wholesale transactions, certain services, and items sold for resale. Maintain proper exemption documentation.
• Tax Reporting: Track gross receipts by location for accurate reporting and timely filing through the New Mexico Taxpayer Access Point (TAP) portal.

Is there a New Mexico SaaS sales tax?

Yes, New Mexico imposes Gross Receipts Tax (GRT) on certain Software as a Service (SaaS) products. In New Mexico, SaaS is generally classified as a taxable service when provided to customers, and GRT applies.

Category	Details	Examples
Taxable SaaS	Software provided as a service with access to functionality hosted by the seller.	Cloud-based accounting software subscriptions.
Non-Taxable SaaS	Services primarily considered professional or consulting, without significant reliance on software.	Custom software development or IT consulting.

Additional Considerations

• SaaS providers may need to collect and remit GRT if they have nexus in New Mexico.
• Businesses purchasing SaaS should review applicable exemptions or deductions, such as for government or nonprofit entities, which might apply under GRT rules.
• New Mexico's tax system is broad and applies to most transactions, so businesses must carefully analyze whether their SaaS offerings qualify as taxable services.

Is there sales tax on clothing in New Mexico?

New Mexico does not specifically exempt clothing from Gross Receipts Tax (GRT), meaning clothing purchases are generally subject to tax unless otherwise exempted. Here are the details:

Category	Details	Examples
Taxable Clothing	Most clothing and footwear items are subject to GRT.	Shirts, pants, shoes, jackets.
Exempt Purchases	Clothing purchased by entities eligible for exemptions (e.g., nonprofits).	Uniforms purchased by a nonprofit school.
Protective Equipment	Gear designed for safety purposes is taxable under GRT.	Hard hats, goggles, protective gloves.
Business Purchases	Businesses purchasing clothing for resale can claim a deduction.	Retailers buying inventory for resale.

Additional Considerations

• In New Mexico, GRT applies broadly to goods and services, including clothing, unless a specific exemption or deduction applies.
• Businesses purchasing clothing for resale must provide a valid resale certificate to avoid GRT on those transactions.

FAQs

What is the New Mexico gross receipts tax?

New Mexico imposes a statewide Gross Receipts Tax (GRT) of 5.375%, with local rates that can bring the total to 9.5%.

How much is shipping tax in New Mexico?

Shipping is taxable in New Mexico if it is part of the sale price and not separately stated on the invoice.

What is the sales tax rate in Albuquerque, New Mexico?

The total GRT rate in Albuquerque is 7.875%.

Sales Tax Nexus in New Mexico

Sales tax nexus in New Mexico establishes a business's obligation to collect and remit Gross Receipts Tax (GRT), triggered by physical presence, economic activity, or relationships with in-state entities.

Type of Nexus	Description	Threshold/Criteria
Physical Nexus	Created by having a physical presence in New Mexico, such as a location, employees, or inventory.	Office, warehouse, storefront, or employees operating in New Mexico.
Economic Nexus	Triggered by making substantial sales into New Mexico, even without a physical presence.	More than $100,000 in gross sales annually into New Mexico.
Affiliate Nexus	Created through relationships with in-state businesses that help facilitate sales.	A New Mexico-based affiliate promotes or sells products for the out-of-state retailer.
Marketplace Nexus	Applies to sales made through marketplace facilitators operating in New Mexico.	Facilitators must collect and remit GRT on behalf of sellers.
Inventory Nexus	Triggered by storing inventory in New Mexico, even if through a third party (e.g., warehouses or fulfillment centers).	Any physical inventory located in New Mexico.
Employee or Agent Nexus	Having employees, independent contractors, or agents perform services in New Mexico.	Sales or service activities conducted by representatives in New Mexico.

Notes

• New Mexico requires businesses with nexus to collect and remit Gross Receipts Tax (GRT) on sales of goods, services, leases, and rentals.
• Marketplace facilitators are responsible for collecting and remitting GRT for third-party sales made through their platforms.
• Businesses must register with the New Mexico Taxpayer Access Point (TAP) to report and remit GRT.

FAQs

What is the sales tax nexus in New Mexico?

Sales tax nexus in New Mexico is established through physical presence or economic nexus, triggered by exceeding $100,000 in annual sales or 200 transactions within the state.

New Mexico Sales Tax Exemptions in 2025

In 2025, New Mexico maintains its 5.375% Gross Receipts Tax (GRT), with exemptions for prescription medications, groceries, and certain medical services.

What is a New Mexico state tax-exempt certificate?

A New Mexico state tax-exempt certificate, also known as Form ACD-31050, is a document that allows eligible buyers to make tax-exempt purchases in New Mexico. It certifies that the buyer qualifies for an exemption under New Mexico’s Gross Receipts Tax (GRT) law.

• Purpose: Used for transactions exempt from GRT, such as purchases by government agencies, nonprofit organizations, or for resale purposes.
• Usage: The buyer provides the certificate to the seller at the time of purchase to avoid being charged GRT.
• Retention: Sellers must keep a copy of the certificate on file to validate tax-exempt transactions in case of an audit.

Valid Reasons for Exemption

Exemption Category	Description	Examples
Resale	Items purchased for resale.	Products bought by retailers for inventory.
Manufacturing	Machinery and equipment used directly in production.	Manufacturing tools, raw materials, and machinery.
Nonprofit Organizations	Tax-exempt entities making qualified purchases.	Purchases by charitable or educational organizations.
Government Agencies	Federal, state, or local government entities.	Office supplies or equipment bought by government offices.
Agricultural Use	Equipment and supplies used exclusively in farming.	Tractors, feed, and seed.
Healthcare Services	Items or services related to healthcare operations.	Medical devices and prescription medications.

Note: New Mexico requires businesses to submit accurate exemption certificates and retain them for verification during audits.

What is exempt from sales tax in New Mexico?

Nearly 85% of business leaders prioritize cost savings when managing business expenses, making New Mexico's sales tax exemptions and use tax considerations critical.

This table outlines key exemptions to help businesses optimize their tax strategies:

Category	Exempt Items
Essential Goods	Prescription medications, durable medical equipment (e.g., wheelchairs, medically necessary devices).
Groceries	Most groceries are exempt from Gross Receipts Tax (excluding prepared foods, candy, and soft drinks).
Utilities	Residential water charges, electricity, and natural gas for residential use.
Agriculture and Manufacturing	Farming supplies (e.g., seeds, fertilizers, farm equipment), manufacturing machinery used directly in production.
Nonprofit and Government	Purchases by qualifying charitable organizations, government purchases (federal, state, and local).
Educational Materials	Textbooks for educational use.
Occasional Sales	Casual sales by individuals not engaged in a regular business (e.g., yard sales).

New Mexico Sales Tax Permits, Registration, and Filing in 2025

This section simplifies obtaining permits, filing returns, and meeting payment deadlines effectively for businesses with buyers in New Mexico.

How do I get a New Mexico sales tax permit?

To obtain a sales tax permit in New Mexico, follow these steps:

• Register Online: Visit the New Mexico Taxpayer Access Point (TAP) to start your registration for a Combined Reporting System (CRS) Identification Number, required for collecting and remitting Gross Receipts Tax (GRT).
• Provide Business Details: Submit information such as your business name, address, type of business entity, and federal EIN or Social Security number.
• Pay the Registration Fee: New Mexico does not charge a fee for obtaining a CRS Identification Number.
• Receive Your Permit: Once approved, you'll receive a CRS Identification Number, allowing you to collect and remit GRT on taxable sales.
• Note: New Mexico requires businesses with physical or economic nexus to register for GRT collection before conducting taxable transactions.

How do I submit a New Mexico sales tax registration?

To register for New Mexico Gross Receipts Tax (GRT), follow these steps. New Mexico also offers customer support for registration through their website or by phone at (866) 285-2996.

Determine if You Need to Register

Businesses with nexus (physical or economic presence) in New Mexico must register for GRT. Nexus may result from:

• A physical location, employees, or inventory in New Mexico.
• Remote sales exceeding $100,000 in gross revenue annually into New Mexico.

Gather Required Information

• Business name, address, and contact details.
• Federal Employer Identification Number (FEIN) or Social Security Number (SSN) for sole proprietors.
• Legal structure of the business (e.g., sole proprietorship, LLC, corporation).
• Estimated monthly taxable gross receipts in New Mexico.

Register Online

• Visit the New Mexico Taxpayer Access Point (TAP).
• Select the “Register a New Business” option.
• Complete the online registration form by providing all required business details.

Submit Registration

• Ensure all information is accurate before submission.
• Once approved, you will receive a Combined Reporting System (CRS) Identification Number.

Begin Collecting and Remitting Gross Receipts Tax

• After registration, you can start collecting GRT.
• Use the TAP portal to file returns, remit collected taxes, and manage GRT obligations.

New Mexico Sales Tax Filing

This section breaks down New Mexico's sales tax requirements, including filing rules, taxable items, and permits.

What are the main New Mexico filing requirements?

New Mexico Gross Receipts Tax (GRT) filing requirements depend on the size and frequency of taxable sales:

• Filing Frequency: Businesses must file monthly, quarterly, or semiannually based on their total GRT liability.
• Due Date: Returns are due on the 25th of the month following the reporting period.
• Filing Method: Returns must be filed electronically through the New Mexico Taxpayer Access Point (TAP).
• Additional Requirements: Businesses must report all taxable and exempt gross receipts and remit payment for collected GRT by the due date to avoid penalties and interest.

Filing Frequency Criteria

Filing Frequency	Criteria
Monthly	For businesses with $200 or more in GRT liability per month.
Quarterly	For businesses with $50 to $199 in GRT liability per month.
Semiannually	For businesses with less than $50 in GRT liability per month.

Note: New Mexico’s GRT applies broadly to goods, services, leases, and rentals. Businesses must accurately report gross receipts, deductions, and exemptions. Electronic filing is mandatory for most businesses.

What does New Mexico sales tax apply to?

New Mexico’s Gross Receipts Tax (GRT) applies broadly to goods, services, and other business activities, with certain exemptions such as for prescription medications and groceries.

Category	Description	Examples
Tangible Personal Property	Most goods, unless exempt.	Furniture, electronics, clothing.
Taxable Services	Services are generally subject to GRT.	Professional services, repairs, cleaning services.
Digital Goods	Digital products transferred electronically.	Prewritten software, e-books, digital media.
Leases and Rentals	Rentals of equipment and property.	Equipment rentals, car rentals.
Prepared Foods	Meals and drinks sold by food service businesses.	Restaurant meals, takeout, catering.

Note: New Mexico imposes a statewide GRT rate of 5.375%, with local taxes that can increase the total rate to 9.5%. The GRT is charged on the seller’s gross income rather than on the transaction itself, and accurate tracking of exemptions and deductions is critical.

How to file sales tax in New Mexico

To file Gross Receipts Tax (GRT) in New Mexico, follow these steps:

• Log in to TAP: Access the New Mexico Taxpayer Access Point (TAP) using your credentials.
• Complete the GRT Return: Enter total gross receipts, deductions, and taxable amounts for each applicable jurisdiction.
• Calculate Tax Due: TAP automatically calculates the GRT owed based on your entries and local tax rates.
• Submit Payment: Pay electronically through the portal or by other approved methods.
• Meet Deadlines: Returns are due by the 25th of the month following the reporting period (monthly, quarterly, or semiannually, depending on your assigned frequency).
• Maintain Records: Keep copies of filed returns and payment confirmations for audit purposes.

FAQs

What day is New Mexico sales tax due?

New Mexico GRT is due on the 25th of the month following the reporting period for monthly or quarterly filers.

Does New Mexico have a sales tax holiday?

Yes, New Mexico offers a sales tax holiday annually in early August, exempting certain school supplies, clothing, and computers from GRT.

Automate Your New Mexico Sales Tax with Kintsugi

Managing New Mexico sales tax compliance can be complex, from verifying local tax rates to tracking exemptions and meeting filing deadlines. Kintsugi simplifies this process with powerful automation tools designed for modern businesses.

Feature	Description
Accurate Tax Rate Calculations	Automatically apply the correct state and local sales tax rates based on your customer’s location.
Exemption Management	Seamlessly identify and apply exemptions for groceries, prescription medications, and other qualifying items.
Effortless Filing	Streamline your tax reporting and filing process with integrations that calculate, track, and submit sales tax payments.
ERP and eCommerce Integration	Connect with platforms like Shopify, QuickBooks, Amazon, and more for seamless tax data management.

Let Kintsugi handle the complexities of New Mexico sales tax so you can focus on growing your business. Visit our Product Platform and Pricing pages to learn more and get started today!