Santa Fe Sales Tax Guide 2025 (New Mexico)

Navigating sales tax compliance in Santa Fe, New Mexico, can be challenging for businesses of all sizes. Understanding the local legislation, regulations, New Mexico sales tax rates, streamlined sales tax initiatives program, 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 Santa Fe for 2025.

Santa Fe Sales Tax Rate (New Mexico)

As of January 1, 2025, Santa Fe, New Mexico, imposes a Gross Receipts Tax (GRT) of 8.44% on most goods and services. This rate comprises the state GRT of 5.12% and the city GRT of 3.31%. 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	5.12%
County Tax	0.00%
City Tax	3.31%
Special Tax	0.00%
Combined Tax	8.44%

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

Sales Tax Calculator Santa Fe New Mexico

As a business owner in Santa Fe, New Mexico, you must ensure your sales tax registration, including use tax obligations, is up to date and accurately calculate and apply the Gross Receipts Tax (GRT) on your sales and services using accurate rates. Unlike traditional sales tax, New Mexico applies GRT to businesses rather than consumers, but you can pass it on to your customers. This guide will walk you through the steps to ensure compliance.

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

The current Gross Receipts Tax (GRT) rate in Santa Fe, NM, is 8.4375%, which reflects the combined sales tax rate for the area.

This is made up of:

• State GRT: 5.125%
• City & County GRT: 3.3125%

Since tax rates can change, 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 Santa Fe and sell a laptop for $1,500, here’s how to calculate the tax:

1. Multiply the item price by the GRT rate: 1,500 × 8.4375% = 126.56
2. Total Price to Charge the Customer: 1,500 + 126.56 = 1,626.56

Final Price: $1,626.56

Final Tips for Santa Fe, NM, Business Owners

• Use the correct GRT rate: 8.4375% applies to most taxable sales in Santa Fe.
• 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 Carlsbad NM

What is the Sales Tax in Santa Fe New Mexico?

Santa Fe does not have a traditional sales tax; instead, businesses pay a Gross Receipts Tax (GRT) of 8.4375%, which can be passed on to customers.

How Much is Sales Tax in Santa Fe?

The Gross Receipts Tax (GRT) rate in Santa Fe is 8.4375%, including a 5.125% state rate and a 3.3125% local rate.

What is the Sales Tax Rate in Santa Fe NM?

The Santa Fe Gross Receipts Tax (GRT) rate is 8.4375%, applied to most goods and services instead of a traditional sales tax.

Santa Fe Sales Tax Filing Steps