What is the sales tax rate in New Mexico?

The New Mexico state gross receipts tax rate is 4.875%. Local jurisdictions add additional taxes, making the total rate 7.625% in Albuquerque and up to 8.6875% in some areas. New Mexico's "gross receipts tax" functions similarly to a sales tax but technically taxes businesses rather than consumers.

Does New Mexico have local sales tax?

Yes, New Mexico allows local jurisdictions to impose additional gross receipts taxes on top of the 4.875% state rate. Local rates vary by county and municipality, ranging from about 2% to over 3.7%, making total rates vary significantly across the state.

Are groceries taxed in New Mexico?

Yes, groceries are generally taxable in New Mexico at the full gross receipts tax rate. However, New Mexico does exempt some food items purchased with federal nutrition assistance (like SNAP/EBT), and certain agricultural products may qualify for deductions.

Is clothing taxed in New Mexico?

Yes, clothing and footwear are taxable in New Mexico at the full rate (4.875% state rate plus local taxes). New Mexico does not have a general clothing exemption.

Are prescription drugs taxed in New Mexico?

No, prescription drugs and medications are exempt from gross receipts tax in New Mexico. Most medical services are also exempt, though durable medical equipment and over-the-counter drugs are generally taxable.

Do I pay sales tax on used cars in New Mexico?

Yes, New Mexico charges gross receipts tax on motor vehicle purchases, whether new or used. The rate includes the state rate and applicable local taxes. In Albuquerque, the total rate is 7.625%. The tax is calculated on the purchase price and must be paid when you register the vehicle.

What makes New Mexico's tax different from other states?

New Mexico technically has a 'gross receipts tax' rather than a traditional sales tax. This means the tax is imposed on businesses for the privilege of doing business, not directly on consumers. However, businesses typically pass this cost to consumers, making it function like a sales tax. The GRT also applies to services, not just goods.

When did New Mexico last change its sales tax rate?

The state gross receipts tax rate has been 4.875% since July 2005. However, local rates change more frequently as municipalities adjust their rates. Recent changes include various local rate adjustments in 2023 and 2024.

Sales Tax Calculator

New Mexico Sales Tax
Calculator

Calculate New Mexico gross receipts tax (sales tax) instantly for any city. Enter any amount to see the exact tax and total including local taxes.

State Rate

4.875%

+ local taxes (2-3.7%)

Select City

Amount before tax

About New Mexico Sales Tax

State rate: 4.875%

Local rate in Bernalillo County: 2.750%

Combined rate in Albuquerque: 7.625%

State Rate

4.875%

Local Tax

Yes

Max Rate

8.69%

Rank

#18

New Mexico Gross Receipts Tax Rates by City

New Mexico has a state gross receipts tax rate of 4.875%. Local jurisdictions add their own taxes ranging from 2% to 3.7%, making total rates vary across the state. The highest combined rate is 8.6875% in Española.

Albuquerque

Bernalillo County

7.625%

Standard Rate

564,559

Las Cruces

Doña Ana County

8.390%

Standard Rate

111,385

Rio Rancho

Sandoval County

7.438%

Standard Rate

104,026

Santa Fe

Santa Fe County

8.188%

Standard Rate

87,505

Roswell

Chaves County

8.371%

Standard Rate

48,422

Lovington

Lea County

7.000%

Special District

11,668

Española

Rio Arriba County

8.688%

Special District

10,526

Socorro

Socorro County

7.563%

Special District

8,707

City	County	Standard Rate	Special District	Population
Albuquerque	Bernalillo	7.625%	Standard Rate	564,559
Las Cruces	Doña Ana	8.390%	Standard Rate	111,385
Rio Rancho	Sandoval	7.438%	Standard Rate	104,026
Santa Fe	Santa Fe	8.188%	Standard Rate	87,505
Roswell	Chaves	8.371%	Standard Rate	48,422
Lovington	Lea	7.000%	Special District	11,668
Española	Rio Arriba	8.688%	Special District	10,526
Socorro	Socorro	7.563%	Special District	8,707

Note: Total rates include the 4.875% state rate plus additional local taxes. Some areas have special taxing districts.

How to Calculate Sales Tax in New Mexico

Sales Tax Calculation

New Mexico

Example: Furniture Purchase in Albuquerque

Determine the purchase price

Purchase price (before tax) $1,000.00

Multiply by the total tax rate

State GRT: 4.875%

Bernalillo County local: 2.75%

Total: 7.625%

$1,000.00 × 7.625% (0.07625)

Sales tax $76.25

Add to the original price

$1,000.00 + $76.25

TOTAL AMOUNT DUE $1,076.25

Thank you for your purchase

Reverse Calculation

Know the total in Albuquerque? Divide by 1.07625 to find the pre-tax price. Example: $107.63 ÷ 1.07625 = $100.00

What's Taxed?

Taxable: Groceries, clothing, services, goods

Exempt: Prescription drugs, some medical services

Understanding New Mexico's Gross Receipts Tax

Not Technically a "Sales Tax"

New Mexico's Gross Receipts Tax (GRT) is technically a tax on businesses, not consumers

🏢

Tax on Businesses

The GRT is imposed on businesses for the privilege of doing business in New Mexico, not directly on consumers.

💰

Passed to Consumers

However, businesses typically pass this cost to consumers, making it function like a traditional sales tax.

🛠️

Services Also Taxed

Unlike most states, New Mexico's GRT applies to services as well as goods, making it broader than traditional sales taxes.

Deductions & Exemptions

New Mexico offers limited exemptions compared to most states

•
Prescription Drugs: Medications prescribed by licensed healthcare providers are exempt
•
Medical Services: Most professional medical and hospital services are exempt
•
Sales to Federal Government: Direct sales to federal agencies are exempt
•
Manufacturing Equipment: Certain machinery used directly in manufacturing may qualify for deductions
•
Agricultural Products: Some agricultural sales and purchases may qualify for deductions

Note: Unlike many states, New Mexico taxes groceries, clothing, and most services at the full GRT rate. This makes New Mexico's tax base one of the broadest in the nation.

How New Mexico Compares to Neighboring States

Here's how New Mexico's sales tax stacks up against nearby states

4.875%

Texas

6.25%

+ up to 2%
local tax

Colorado

2.90%

+ up to 8.3%
local tax

New Mexico

4.875%

+ local taxes (up to 3.7%)

Gross Receipts Tax

Oklahoma

4.50%

+ up to 7%
local tax

Arizona

5.60%

+ up to 5.6%
local tax

New Mexico's GRT taxes services unlike most states, but its 4.875% state rate is moderate among neighbors. Combined rates in major cities are comparable to or lower than surrounding states.

Got Questions?

Frequently Asked Questions

New Mexico Gross Receipts Tax Rate History

New Mexico's gross receipts tax has a long history, dating back to 1933:

Year	Event	Notes
Current	4.875% state rate	Plus local rates up to 3.7%
2005	Rate increased to 4.875%	Increased from 4.5% (effective July 1, 2005)
2004	Food deduction reinstated	Limited deduction for food purchases allowed
2003	Food deduction repealed	Groceries fully taxed at GRT rate
1990s-2000s	Various rate adjustments	Rate fluctuated between 4% and 5%
1966	Local option authorized	Municipalities allowed to impose additional GRT
1933	GRT enacted	New Mexico Emergency School Tax Act created GRT

Key insight: New Mexico's GRT is one of the oldest sales tax systems in the United States, created during the Great Depression to fund schools. Its structure as a tax on businesses rather than consumers remains unique, and its broad application to services makes it one of the most comprehensive consumption taxes in the nation.

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Resources

Official NM Tax Info

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Disclaimer: This calculator provides estimates based on current New Mexico gross receipts tax rates as of January 2025. Tax rates are subject to change by state and local legislation. For official tax rates and specific guidance on your situation, please consult the New Mexico Taxation and Revenue Department or a qualified tax professional.

Not Legal or Tax Advice: The information provided on this page is for informational purposes only and should not be construed as legal or tax advice. Always verify current rates before making large purchases or business decisions.

Sources: New Mexico Taxation and Revenue Department, NMSA 1978, Chapter 7 (Taxation), Local Tax Rate Tables

Last updated: October 10, 2025