Las Cruces Sales Tax Guide 2025 (New Mexico)

Navigating sales tax compliance in Las Cruces, 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, especially as there may be an increase in these rates over time. At Kintsugi, we simplify sales tax compliance for businesses by offering resources and seamless integrations, 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 Las Cruces for 2025.

Las Cruces Sales Tax Rate (New Mexico)

As of January 1, 2025, Las Cruces, New Mexico, imposes a Gross Receipts Tax (GRT) of 8.06% on most goods and services. This rate comprises the state GRT of 4.88% and the city GRT of 3.19%. Historically, New Mexico replaced its traditional sales tax with the Gross Receipts Tax in 1966 to broaden the tax base.

Jurisdiction	Sales tax rate
State Tax	4.88%
County Tax	0.00%
City Tax	3.19%
Special Tax	3.19%
Combined Tax	8.06%

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

Las Cruces NM Sales Tax Calculator

As a business owner in Las Cruces, New Mexico, understanding how to correctly calculate and apply the Gross Receipts Tax (GRT) and use tax is essential for compliance and accurate pricing. Unlike traditional sales tax, New Mexico applies GRT to businesses instead of consumers, but businesses can pass it on to customers. Let’s break it down step by step.

Step 1: Know the Gross Receipts Tax Rate in Las Cruces, NM

The current Gross Receipts Tax (GRT) rate in Las Cruces, NM, is 8.065%.

This consists of:

• State GRT: 4.875%
• City & County GRT: 3.19%
• Since tax rates can change, always check the New Mexico Taxation & Revenue Department (TRD) website for updates.

Step 2: Determine If Your Sale is Taxable

New Mexico’s GRT applies to both goods and many services, unlike traditional sales tax:

• Taxable Items: Retail goods (electronics, furniture, clothing, etc.), professional services (consulting, accounting, legal, repairs, and 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.

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

If you own an electronics store in Las Cruces 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 × 8.065% = 80.65
2. Total Price to Charge the Customer: 1,000 + 80.65 = 1,080.65

Final Price: $1,080.65

Final Tips for Las Cruces, NM, Business Owners

• Use the correct GRT rate: 8.065% applies to most taxable sales in Las Cruces.
• 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 Clovis NM

What is the Sales Tax in Las Cruces NM?

Las Cruces does not have a traditional sales tax; instead, businesses must pay a Gross Receipts Tax (GRT) of 8.065%, which can be passed on to customers.

Las Cruces Sales Tax Filing Steps