Albuquerque Sales Tax Guide 2025 (New Mexico)

Navigating sales tax compliance in Albuquerque, New Mexico, can be challenging for businesses of all sizes. Understanding the local regulations, New Mexico sales tax rates, and filing requirements is critical to staying compliant and avoiding penalties. At Kintsugi, we simplify sales tax compliance for businesses, helping you focus on growth without the headache of managing complex tax rules. In this guide, we'll break down everything you need to know about sales tax in Albuquerque for 2025.

Sales Tax Rate Albuquerque (New Mexico)

As of 2025, Albuquerque, New Mexico, imposes a Gross Receipts Tax (GRT) of 7.88% on most goods and services. This rate comprises the state GRT of 5.125% and the city GRT of 2.75%. Historically, New Mexico replaced its traditional sales tax with the GRT in 1966 to broaden the tax base.

Jurisdiction	Sales tax rate
State Tax	4.88%
County Tax	1.31%
City Tax	3.00%
Special Tax	7.75%
Combined Tax	7.88%

(Note: Sales tax rates are subject to change. Check the New Mexico Department of Revenue’s website for the latest updates.)

Albuquerque Sales Tax Calculator (New Mexico)

As a business owner in Albuquerque, New Mexico, you need to understand how to correctly calculate and apply the Gross Receipts Tax (GRT) on your sales and services. Unlike traditional sales tax, New Mexico applies GRT to businesses, but it can be passed on to customers. Let’s go step by step to make sure you’re doing it right.

Step 1: Understand the Gross Receipts Tax Rate in Albuquerque, NM

The current Gross Receipts Tax (GRT) rate in Albuquerque, NM, is 7.875%.

This is made up of:

• State GRT: 5.125%
• City & County GRT: 2.75%

The rate may change, so always check the New Mexico Taxation & Revenue Department (TRD) website for updates.

Step 2: Determine If Your Sale is Taxable

In New Mexico, GRT applies to both goods and many services:

• Taxable Items: Retail goods (electronics, furniture, clothing, etc.), professional services (consulting, accounting, legal, repairs), restaurant meals and beverages.
• Exempt Items: Prescription medications, some groceries, and certain government and non-profit transactions.

If you’re unsure whether an item is taxable, check the New Mexico Gross Receipts Tax Guide (here).

Step 3: Calculate the Gross Receipts Tax on a Product or Service

Let’s say you own an electronics store in Albuquerque and sell a laptop for $1,000.

Here’s how to calculate the tax:

1. Multiply the item price by the GRT rate: 1,000 × 7.875% = 78.75
2. Total Price to Charge the Customer: 1,000 + 78.75 = 1,078.75

Final Price: $1,078.75

Final Tips for Albuquerque, NM, Business Owners

• Use the correct GRT rate: 7.875% applies to most taxable sales in Albuquerque.
• Confirm tax-exempt items: Some groceries, medical services, and non-profit transactions are not taxable.
• File taxes on time: New Mexico requires monthly, quarterly, or annual GRT filings based on your revenue.
• Use automation: POS systems like QuickBooks, Square, or Xero can help track and apply GRT correctly.

FAQ on Sales Tax in Albuquerque NM

What is the Sales Tax in Albuquerque NM?

Albuquerque does not have a traditional sales tax; instead, businesses must pay a Gross Receipts Tax (GRT) of 7.875%, which can be passed on to customers.

How Much is Sales Tax in Albuquerque New Mexico?

The Gross Receipts Tax (GRT) rate in Albuquerque is 7.875%, including a 5.125% state rate and a 2.75% local rate.

What is Albuquerque Sales Tax Rate?

Albuquerque's Gross Receipts Tax (GRT) rate is 7.875%, applied to most goods and services instead of a traditional sales tax.

Albuquerque Sales Tax Filing Steps