New Mexico

The New Mexico (NM) state gross receipts tax rate is currently 5.125%. Depending on local municipalities, the total tax rate can be as high as 8.625%.

New Mexico has a gross receipts tax that is imposed on persons engaged in business in New Mexico. Generally, a business will pass that tax on to the consumer so that it resembles a sales tax. For more details, read the New Mexico Gross Receipts Tax Overview.

Other, local-level tax rates in the state of New Mexico are quite complex compared against local-level tax rates in other states. New Mexico sales tax may also be levied at the city/county/school/transportation and SPD (special purpose district) levels. The combined rates vary from the state rate of 5.125% up to 8.8675% in some areas.

The state’s portion of the gross receipts tax is determined by state law. changes only occur once a year, usually in July. County commissioners govern a county’s portion of the gross receipts tax and municipal councils govern local municipality portions. The county and municipal changes are usually effective in January or July of each year. New rate schedules are issued twice a year–the department does not send out separate notices when changes occur so the business needs to track and maintain rate changes through research.

Avalara Sales and Use Tax Products for New Mexico

AvaTax – AvaTax is a powerful, online sales tax compliance solution that provides all businesses with a level of sales tax automation that until now has been available only to Fortune 500 companies. AvaTax’s transaction-based service model and seamless integration into business applications gives you rapid access to all jurisdiction assignments and real-time sales tax calculations. Cutting-edge technologies and superior processing logic can manage even the most complicated tax issues, such as situs, nexus, tax tiers, tax holidays, exemptions, certificate management and product taxability rules.

TrustFile - Avalara TrustFile provides detailed sales tax reporting for online sellers. Allowing businesses to know exactly where, when and how much to file. Ecommerce business owners can use TrustFile to determine whether or not they are collecting the right amount of sales tax in each individual state, and then store a record of their sales tax history securely in the cloud for free.

New Mexico Taxation and Revenue Department