On this page we are describing the sales taxes in the State of New Mexico, we aim to educate you on the differences that occur throughout the state so you get a better understanding of it in regards to whether you may have:

  • Have taken a new job in the are
  • Applied for a new school
  • Opened a new bank account in the state of New Mexico
  • People who may be unable to find their Social Security Card or have lost it.

What is the lowest and highest sales tax in New Mexico?

In the map of New Mexico is pictured below there are a total of 33 countries that are within the state. You can go directly to the page and see which area has the highest and lowest sales tax in your county of choice.

Bernalillo Catron Chaves Cibola Colfax Curry De Baca DoñaAna Eddy Grant Guadalupe Harding Hidalgo Lea Lincoln Los Alamos Luna McKinley Mora Otero Quay Rio Arriba Roosevelt Sandoval San Juan San Miguel SantaFe Sierra Socorro Taos Torrance Union Valencia
The state sales tax for businesses and so forth is a standard rate of 5.125% which allows the local government to be able to collect up to another 4.3125% on top of this:

  • the average sales tax for the entirety of New Mexico is 7.208%,
  • the highest is within the Taos County that consists of Taos Ski Valley and this equates to 9.4375% sales tax,
  • the lowest sales tax is in Lea, Lincoln County, which includes cities like Hobbs, Alto, Capitan, Tatum, Nogal, Hondo, Corona, Tinnie, Caprock, Glencoe, Lincoln, Picacho, Maljamar, Mcdonald, Monument, Crossroads, Fort Stanton, San Patricio and the sales tax in these areas total to 5.5%

This is a brief overview, and we suggest that you go directly to the page if you wish to get a clearer image of the different ranges of sale tax in a particular county. Please note that the ones that have an asterisk means they are below the usual county level of sales tax.

How to calculate your own sales tax in the state of New Mexico.

So, what does this mean for you, if you are looking into how much sales tax you are going to charged dependant on what sort of county you are residing or working out of. You can go ahead and use a sales tax calculator which will give you a section that is exampled below.

$
-or- Specify Sales Tax Rate
-or- Specify ZIP Code
%

 

You do need to know the purchase ZIP code and purchase amount in order to get an accurate figure. For an example we will use the amount of $800 and see what the ranges could be from the highest area to the lowest.

In Taos Ski Valley, NM with the highest sales tax of 9.4375% would mean that your $800 purchase would incur a $75.5 sales tax, taking the total amount to $875.5.

Whereas in Albuquerque, NM the sales tax is only 7.875% and a $800 purchase would equate to $63 tax, taking the total to $863.

The sales tax calculator makes it as easy as it can be to find out what sort of sales tax you will be charged by simply adding the amount and the ZIP code. Though there might be some purchases that are exempt from sales taxes or have some special leniency which do need to be taken into consideration.

City Sales Tax Rate Zip-code Population
Albuquerque 7.88% 87101, 87102, 87103, 87104, 87106, 87107, 87108, 87109, 87110, 87111, 87112, 87113, 87114, 87119, 87120, 87121, 87123, 87125, 87131, 87151, 87153, 87154, 87158, 87176, 87181, 87187, 87190, 87191, 87192, 87193, 87194, 87196, 87197, 87198, 87199 426708
Las Cruces 8.31% 88001, 88005, 88011, 88012, 88013 80185
Santa Fe 8.44% 87501, 87502, 87503, 87504, 87505, 87507, 87509, 87592, 87594 75747
Rio Rancho 7.69% 87124, 87144, 87174 71037
Farmington 8.38% 87401, 87402, 87499 63754
Roswell 7.83% 88201, 88202, 88203 41457
Gallup 8.31% 87301, 87302, 87305 39997
Clovis 8.19% 88101, 88102 34463
Los Lunas 6.88% 87031 29693
Alamogordo 8.13% 88310, 88311 27669
Carlsbad 7.65% 88220, 88221 26176
Los Alamos 7.31% 87544, 87545 16811
Deming 6.88% 88030 15410
Belen 8.31% 87002 15051
Silver City 8.00% 88061, 88062 14023
Las Vegas 8.40% 87701 13858
Portales 8.19% 88130 13035
Anthony 6.75% 88021 12366
Artesia 7.90% 88210 11703
Aztec 8.38% 87410 11695
Espanola 8.94% 87532 11670
Edgewood 8.19% 87015 10942
Lovington 7.25% 88260 10877
Bloomfield 8.31% 87413 10596
Sunland Park 8.44% 88063 9070
Chaparral 6.75% 88081 8763
Taos 8.69% 87571 8543
Tijeras 6.44% 87059 8247
Bernalillo 7.19% 87004 8129
Corrales 7.81% 87048 8101
Socorro 7.81% 87801 8072
Grants 8.13% 87020 7368
Ruidoso 8.44% 88345, 88355 7147
Hobbs 5.50% 88241, 88242 7098
Raton 8.51% 87740 6506
Moriarty 6.75% 87035 5396
Ranchos De Taos 7.75% 87557 5241
Shiprock 6.69% 87420 5236
Tucumcari 8.38% 88401 5225
Kirtland 6.69% 87417 5126
Truth Or Consequences 8.50% 87901 4730
Placitas 6.38% 87043 4415
Santa Teresa 6.75% 88008 4196
Sandia Park 6.44% 87047 4138
Mesilla Park 6.75% 88047 4097
Zuni 6.75% 87327 4008
Tularosa 7.75% 88352 3822
Bosque Farms 8.55% 87068 3733
Dexter 6.52% 88230 3689
Santa Cruz 9.06% 87567 3675

Why do I need to collect sales tax in New Mexico?

You will need to collect sales tax if you have any sort of nexus there, and what this means is that if you have assets that are physical or economic then you need to do this.

Physical meaning having a tangible activity or some sort of presence in any of the states of New Mexico, economic nexus is simply passing the states’ economic threshold for total revenue, or the maximum number of transactions that can occur in the period of time within the state.

Two easy ways to see if you have either a physical or economic nexus in any of the counties is the following:
Physical:

  • Tangible personal property
  • Business assets or property
  • Own, renting properties
  • Made more than $500,000 in a service or content delivery in the state

Economic:

  • Made more than $100,000 in sales annually
  • More than 200 transactions in the last calendar year

How do I get a sales tax permit?

The main way to go about this is to register online at the New Mexico Business Gateway. Follow the steps that are presented to you and ensure that you have the following to hand to use as information:

  • Business identification information
  • Business entity
  • Location/s that you will be conducting this from
  • Date you will start collecting New Mexico sales tax from a business/property
  • NAICS Code (North American Industry Classification System.)

What is the best way to file sales taxes?

Before you think of doing anything else there are three things that we recommend that you do in order to make this process as easy and smooth as possible.

First of all, find out how much tax you owe (remember the sales tax calculator we mentioned before) so that you know how much you need to pay the state at the end. Second is get onto the New Mexico Department Of Taxation ready to submit them, and third have the money ready so you can make the payment straight away.

There are two main options as well to filing and paying your New Mexico sales tax, these are:

  • Filing online. This is where merchants are required to file all of their sales taxes through the department of taxation in the state of New Mexico, you can also pay your taxes on this platform, so it is one to keep close to you for future reference.
  • Filing by mail. Simply fill out the form UST-1, but this is not the recommended way of filing your taxes due to the possibilities of them getting lost in the post and then it could mean that you are subject to late fees if they are not filed within the allotted time.

We hope this document was able to allow you to feel more confident when it comes to sales tax in the state of New Mexico depending on where you operate out of.