How to compute nm-sales-tax for New Mexico, tax year 2025: rates, thresholds, and step-by-step rules with primary-source citations.
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General reference only
This Guide is general tax/accounting reference material for AI-assisted workflows. It has not been reviewed for your personal facts, documents, elections, deadlines, residency, filing status, or local procedures. Do not rely on it to file, pay, amend, or take a tax position without review by a qualified professional in the relevant jurisdiction.
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State GRT rate
5.125%New Mexico Gross Receipts and Compensating Tax Act, NMSA 1978 § 7-9-4
Local add-on rate range
0% – ~4.1875%New Mexico Gross Receipts and Compensating Tax Act, NMSA 1978; Municipal and County GRT Surcharge authorizations
Maximum combined GRT rate (state + local)
~9.3125%New Mexico Gross Receipts and Compensating Tax Act, NMSA 1978; Municipal and County GRT Surcharge authorizations
Economic nexus threshold (taxable gross receipts)
$100,000New Mexico Gross Receipts and Compensating Tax Act, NMSA 1978 § 7-9-3.3
Sourcing rule
Destination-basedNew Mexico Gross Receipts and Compensating Tax Act, NMSA 1978; NMAC 3.2.1.18
Streamlined Sales Tax (SST) member
NoStreamlined Sales Tax Governing Board membership roster
General tangible personal property (TPP)
TAXABLENew Mexico Gross Receipts and Compensating Tax Act, NMSA 1978 § 7-9-4
Clothing
TAXABLE (no exemption)New Mexico Gross Receipts and Compensating Tax Act, NMSA 1978 § 7-9-4
Grocery food
EXEMPT (deductible from gross receipts)New Mexico Gross Receipts and Compensating Tax Act, NMSA 1978 § 7-9-92
Prepared food
TAXABLENew Mexico Gross Receipts and Compensating Tax Act, NMSA 1978 § 7-9-4
All services (including professional services)
TAXABLENew Mexico Gross Receipts and Compensating Tax Act, NMSA 1978 § 7-9-4
SaaS (Software as a Service)
TAXABLENew Mexico Gross Receipts and Compensating Tax Act, NMSA 1978 § 7-9-4; TRD guidance on digital services
Digital goods
TAXABLENew Mexico Gross Receipts and Compensating Tax Act, NMSA 1978 § 7-9-4; TRD guidance on digital goods
Healthcare services
DEDUCTIBLE (specific healthcare deductions available)New Mexico Gross Receipts and Compensating Tax Act, NMSA 1978 §§ 7-9-77, 7-9-77.1
Manufacturing equipment
DEDUCTIBLE (deduction from gross receipts)New Mexico Gross Receipts and Compensating Tax Act, NMSA 1978 § 7-9-73
Prescription drugs
EXEMPTNew Mexico Gross Receipts and Compensating Tax Act, NMSA 1978 § 7-9-73.2
Resale transactions
DEDUCTIBLENew Mexico Gross Receipts and Compensating Tax Act, NMSA 1978 § 7-9-47
Tax incidence — GRT is imposed on
SELLER (not the buyer)New Mexico Gross Receipts and Compensating Tax Act, NMSA 1978 § 7-9-4
Quick reference
| Field | Value |
|---|---|
| Jurisdiction | New Mexico |
| Tax type | Gross Receipts Tax (GRT) -- NOT a traditional sales tax; tax on the SELLER |
| State GRT rate | 5.125% |
| Local add-on range | 0% -- ~4.1875% |
| Maximum combined rate | ~9.3125% |
| Sourcing | Destination-based |
| Economic nexus | $100,000 in taxable gross receipts |
| Tax authority | New Mexico Taxation and Revenue Department (TRD) |
| Portal | https://tap.state.nm.us |
| SST member | No |
| Skill version | 2.0 |
CRITICAL: NM GRT taxes virtually ALL services and most transactions. One of the broadest tax bases in the US (similar to Hawaii GET). Tax is on the seller, not the buyer.
Transaction pattern library
| Pattern | Taxable? | Notes |
|---|---|---|
| General TPP | TAXABLE | |
| Clothing | TAXABLE | No exemption |
| Grocery food | EXEMPT | Deductible from gross receipts |
| Prepared food | TAXABLE | |
| ALL services (including professional) | TAXABLE | NM taxes virtually all services |
| SaaS | TAXABLE | |
| Digital goods | TAXABLE | |
| Healthcare services | DEDUCTIBLE | Specific healthcare deductions available |
| Manufacturing equipment | DEDUCTIBLE | Deduction from gross receipts |
| Prescription drugs | EXEMPT | |
| Resale | DEDUCTIBLE |
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This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. Open Accountants and its contributors accept no liability for any errors, omissions, or outcomes arising from the use of this skill. All outputs must be reviewed and signed off by a qualified professional (such as a CPA, EA, tax attorney, or equivalent licensed practitioner in your jurisdiction) before filing or acting upon.
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Other New Mexico computations in the OpenAccountants Tax Library.
Rendered from the facts database. General reference only — confirm with a qualified professional before acting.
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