Farmington Sales Tax Guide 2025 (New Mexico)
This 2025 guide to Farmington sales tax breaks down important sales tax rates, exemptions, returns, and filing deadlines for New Mexico businesses selling in Farmington or out-of-state businesses selling to customers in Farmington.
For more general info on New Mexico sales tax, take a look at our 2025 New Mexico Sales Tax Guide.
Farmington Sales Tax Rate (New Mexico)
In 2025, Farmington, New Mexico, imposes a total sales tax rate of 8.19%, comprising state and city taxes. There are no additional county or special district taxes applicable.
Note: This combined rate applies uniformly across all ZIP codes within Farmington, including 87401, 87402, and 87499.
| Tax Component | Rate |
|---|---|
| New Mexico State Tax | 4.88% |
| Farmington City Tax | 3.31% |
| Total Sales Tax Rate | 8.19% |
To learn more about New Mexico sales tax on clothing, take a look at Kintsugi's easy guide: What is the Sales Tax on Clothing in New Mexico: A 2025 Guide for Retailers.
Farmington NM Sales Tax Calculator
A retailer in Farmington, New Mexico, sells an item priced at $500. The total sales tax rate is 8.19%, comprising state and city taxes.
A customer purchasing a $500 item in Farmington would pay $40.95 in sales tax, bringing the final total price to $540.95.
| Tax Type | Rate | Calculation | Tax Amount |
|---|---|---|---|
| New Mexico State Tax | 4.88% | $500 × 4.88% | $24.40 |
| Farmington City Tax | 3.31% | $500 × 3.31% | $16.55 |
| Total Combined Tax | 8.19% | $40.95 | |
| Final Total Price | $500 + $40.95 | $540.95 |
This combined rate applies uniformly across all ZIP codes within Farmington, including 87401, 87402, and 87499.
To learn more about New Mexico sales tax exemptions, take a look at Kintsugi's easy guide: The New Mexico Sales Tax Exemption: 2025 Business Guide.
FAQ
What is the sales tax in Farmington NM?
The sales tax in Farmington, NM, also known as the Gross Receipts Tax (GRT), is 8.375% as of 2024.
Does New Mexico participate in the Streamlined Sales Tax (SST) initiative?
No, New Mexico does not participate in SST. It uses a Gross Receipts Tax (GRT) instead of traditional sales tax, applying tax to most goods and services.
Where should I go to start a sales tax registration for my sales in New Mexico?
Register for New Mexico Gross Receipts Tax (GRT) via Kintsugi, by going to the Taxpayer Access Point (TAP) or by submitting Form ACD-31015 through the New Mexico Taxation and Revenue Department.
What is the sales tax rate in Farmington, New Mexico?
Farmington’s sales tax rate, or Gross Receipts Tax (GRT), is 8.375%, which includes state, county, and local rates.
Farmington Sales Tax Filing Steps
Who Needs to Collect Sales Tax in Farmington?
Sales tax collection in Farmington is required for businesses that meet the following criteria:
1. Physical Presence: Businesses with a store, office, warehouse, or employee in Farmington.
2. Economic Nexus: Out-of-state businesses exceeding $100,000 in New Mexico.
Not sure if your business meets these criteria? Kintsugi’s Nexus Analysis Tool can help you determine your sales tax obligations.
What Is Taxable in Farmington?
In Farmington, New Mexico, sales tax applies to:
1. Tangible personal property (e.g., electronics, clothing, furniture).
2. Certain services.
There are also exemptions for items like Grocery Food, Raw Materials, Newspapers, General Occasional Sales, Motor Vehicles Occasional Sales, Parts Purchased for Use in Performing Service Under Optional Maintenance Contracts, General Pollution Control Equipment, General Trade-Ins. Ensure you check with your state’s tax authority or consult Kintsugi for clarity.
How to File Sales Tax in Farmington
Here’s a step-by-step guide for filing your sales tax returns:
1. Register Your Business: Get a sales tax permit through the https://www.tax.newmexico.gov/businesses/gross-receipts-overview/.
2. Collect Sales Tax: Accurately calculate sales tax on taxable transactions.
3. File and Pay: Submit sales tax returns through https://www.tax.newmexico.gov/businesses/gross-receipts-overview/ by the [state-specific deadline]—monthly, quarterly, or annually depending on your sales volume.
Kintsugi’s Automated Filing Service streamlines the process, ensuring accuracy and timeliness.
Common Challenges in Sales Tax Compliance
Businesses in Farmington often face these issues:
1. Tracking tax rate changes for city, county, and special districts.
2. Managing exemptions and resale certificates.
3. Reconciling returns for accurate filing.
Kintsugi’s AI-Driven Compliance Solution takes the guesswork out of sales tax, handling rate calculations, exemption management, and filing across all jurisdictions.
Why Choose Kintsugi for Sales Tax Compliance?
Kintsugi is more than a software solution—we’re your trusted partner in sales tax compliance. Here’s how we help:
1. Real-Time Rate Calculation across billing, payments, and e-commerce platforms.
2. Nexus Tracking to identify where you need to register and collect tax.
3. Automated Filing to save time and reduce errors.
4. Audit Support to give you peace of mind.
A direct-to-consumer brand, recovered over $200K in overpaid sales tax within their first month of switching to Kintsugi. Your business could be next.
Ready to Simplify Sales Tax Compliance in Farmington?
With Kintsugi, managing sales tax is effortless. Whether you're just starting out or scaling across multiple states, we have the tools to help you stay compliant and grow with confidence.
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Find Sales Tax Information for Other Cities in New Mexico
Looking for sales tax rates and compliance details for other cities in New Mexico? Check out our comprehensive table of sales tax information for cities across the state in the table below
| City | Sales tax rate |
|---|---|
| Santa Fe | 8.19% |
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