The New Mexico sales tax rate is technically zero, because the state doesn’t have a traditional sales tax. Instead, it levies a gross receipts tax (GRT) on businesses for doing business in the state. Although this is meant to be a tax on the seller, not the buyer, it’s common for businesses to pass it on to their customers. The state GRT rate is 4.8750%, but combined rates that include county and city add-ons can be higher.

Below, we’ll explain how New Mexico’s GRT rate is structured, combined rates for major cities and counties, and what businesses need to know about compliance.

Highlights

• New Mexico’s GRT applies to most goods and services.

• The correct GRT rate for a transaction depends on where goods are delivered or services are used.

• Out-of-state businesses that exceed the annual taxable receipts threshold are required to register and collect GRT.

What is the New Mexico sales tax rate?

While New Mexico doesn’t have sales tax, there’s a statewide base GRT rate of 4.8750%. Local jurisdictions layer their own rates on top for a combined rate range of 5.2500%–9.4375%.

The GRT is technically a tax on the seller for doing business in New Mexico. In practice, it’s common for businesses to pass on the cost to their customers, but GRT must be separately stated on the invoice or receipt. More importantly, businesses with physical or economic nexus in New Mexico are liable for GRT, even if they pass on the cost to customers.

Each year, the New Mexico Taxation and Revenue Department (TRD) releases tax tables that show the combined GRT in each municipality or county. Remember to check for rate schedule updates around midyear.

What is taxable in New Mexico?

Many general transactions are subject to New Mexico’s GRT. Taxable purchases include clothing, digital goods, and most services, including software-as-a-service (SaaS).

Here are some exemptions to GRT:

• Groceries: Food for home consumption is exempt; prepared food isn’t.

• Agriculture and livestock: Sales of livestock, unprocessed agricultural products, and services are exempt.

• Nonprofits and organizations: Membership dues for social or professional organizations and homeowners association fees are exempt.

• Fuel, oil, and natural resources: Fuel for which excise tax has been paid, and certain oil and gas sales for resale or out-of-state use are exempt.

There are additional exemptions for telecommunications, research and development, racetrack winnings, textbook sales by eligible college bookstores, and transactions within Indian nation territory. Check with the TRD for details.

What local sales taxes apply in New Mexico?

Local tax rates in New Mexico can be set by counties and individual municipalities. As of 2025, they’re allowed to change once a year in July; so it’s important to check for updates. Tools like Stripe Tax keep track of rate changes and can help you stay up-to-date.

County rates, city rates, and special district surcharges are set locally and added on top of the statewide 4.8750% GRT. The total rate for any given address is the sum of all layers that apply to that location.

What is New Mexico’s sales tax rate by city?

City rates vary considerably. The table below shows combined GRT rates for major New Mexico cities, effective through June 30, 2026. Monitor updated rate tables on the TRD’s website.

What is New Mexico’s sales tax rate by county?

County-level rates are the only additional layer for businesses that operate in unincorporated areas. Businesses inside cities have to add the city’s rate on top. The figures below show combined rates (state plus county) for unincorporated areas in New Mexico’s largest counties, effective through June 30, 2026.

How does New Mexico’s sales tax work for businesses?

New Mexico uses destination-based sourcing in which the GRT rate is determined by where goods are delivered or services are first used. This also applies to services performed outside the state but used inside of it. The rate depends on the customer’s location.

Filing and remittance happen through the TRD’s Taxpayer Access Point system. Returns and payments are due by the 25th day of the month following each reporting period. For example, January activity is due February 25. The TRD assigns your filing frequency based on your total GRT liability; it’ll be monthly if your average liability exceeds $200 per month.

Stripe’s sales tax calculator includes the GRT rate for specific locations. If you don’t want to calculate it manually, Stripe Tax handles rate calculation, collection, and reporting across New Mexico’s jurisdiction combinations automatically. It uses address-level geolocation to apply the correct combined rate for each transaction.

Who needs to collect New Mexico’s sales tax?

Two categories of businesses have GRT obligations: those with a physical presence in New Mexico and those that exceed the state’s economic nexus threshold.

Physical presence in New Mexico requires GRT registration immediately, no matter the sales volume. This includes:

• Maintaining an office, retail location, or warehouse in the state.

• Storing inventory in a New Mexico fulfillment center, including third-party warehouses.

• Employing workers or contractors who perform work in the state, including remote employees.

Out-of-state businesses establish economic nexus in New Mexico once they exceed $100,000 in annual taxable gross receipts within the state. New Mexico uses prior-year measurement only. For example, your 2024 sales determine your 2025 obligations, your 2025 sales determine 2026 obligations, and so on. Once you exceed the threshold, collection obligations begin January 1 of the following year.

How Stripe Tax can help

Stripe Tax reduces the complexity of tax compliance so you can focus on growing your business. Stripe Tax helps you monitor your obligations and alerts you when you exceed a sales tax registration threshold based on your Stripe transactions. In addition, it automatically calculates and collects sales tax, value-added tax (VAT), and goods and services tax (GST) on both physical and digital goods and services—in all US states and in more than 100 countries.

Start collecting taxes globally by adding a single line of code to your existing integration, clicking a button in the Dashboard, or using our powerful application programming interface (API).

Stripe Tax can help you:

• Understand where to register and collect taxes: See where you need to collect taxes based on your Stripe transactions. After you register, switch on tax collection in a new state or country in seconds. You can start collecting taxes by adding one line of code to your existing Stripe integration or add tax collection with the click of a button in the Stripe Dashboard.

• Register to pay tax: Let Stripe manage your global tax registrations and benefit from a simplified process that prefills application details—saving you time and simplifying compliance with local regulations.

• Automatically collect tax: Stripe Tax calculates and collects the right amount of tax owed, no matter what or where you sell. It supports hundreds of products and services and is up-to-date on tax rules and rate changes.

• Simplify filing: Stripe Tax seamlessly integrates with filing partners, so your global filings are accurate and timely. Let our partners manage your filings so you can focus on growing your business.

Learn more about Stripe Tax, or get started today.