The Ultimate New Mexico Sales Tax Guide

Staying on top of sales tax in New Mexico can be challenging, thanks to its varying local rates and complex rules.

But don’t worry! We'll cover the basics of New Mexico’s sales tax system, what triggers nexus, and how to collect and remit taxes properly.

We’ll also share a reliable solution for streamlined sales tax management, ensuring sales tax compliance nationwide.

New Mexico Sales Tax Rate 2025

New Mexico doesn't have a traditional sales tax. Instead, it applies a Gross Receipts Tax (GRT) on the total revenue from business sales. GRT rates vary by location across the state, ranging from 4.875% to 8.937%.

Collecting New Mexico Gross Receipts Tax from Customers

Here’s what you should know about collecting sales tax in New Mexico:

Do I Have to Collect New Mexico Gross Receipts Tax from Customers?

In New Mexico, businesses and individuals are taxed on their total gross receipts for conducting business within the state. While the GRT is legally imposed on the seller, it is common practice for sellers to pass the cost on to buyers as part of the purchase price.

What Creates Gross Receipts Tax Nexus in New Mexico?

If you meet any of the following conditions, you have gross receipts tax nexus in New Mexico:

• Physical nexus: Businesses with a permanent presence, such as a physical business location. 

• Employees: Companies with any resident employee in New Mexico.

• Economic nexus: Marketplace providers and sellers in New Mexico are subject to GRT if their taxable gross receipts exceeded $100,000 in the previous calendar year.

Learn more about sales tax nexus and when you’re required to collect sales tax.

Do I Have to Collect Gross Receipts Tax from New Mexico Customers if I Sell on Amazon or Walmart?

No. 

New Mexico has a marketplace facilitator law that requires platforms like Etsy or Amazon to collect sales tax from third-party sellers on their platforms. However, sellers whose sales fall below the $100,000 threshold don’t have to collect or remit sales tax in New Mexico.

Taxable Products in New Mexico

While groceries are generally exempt from sales tax in New Mexico, most other items, including clothing and specific services, are subject to tax. 

Here’s a comprehensive breakdown of the items subject to tax in New Mexico:

Are Groceries Taxable in New Mexico? 

No, grocery items are not taxed in the state.

Is Clothing Taxable in New Mexico?

Yes, clothing is subject to sales tax in New Mexico.

Are Digital Products Taxable in New Mexico?

Yes, products transferred electronically are subject to sales tax in New Mexico.

Is Software-as-a-Service (SaaS) Taxable in New Mexico?

Yes, New Mexico taxes computer software.

Are Services Taxable in New Mexico?

Some services are subject to sales tax in the state of New Mexico.

Tax-Exempt Items

Some items that are sales tax exempt in New Mexico are:

• Sale of livestock and earnings of growers, producers, and trappers from selling live poultry or unprocessed agricultural products.
• Sale of goods by disabled street vendors.
• Receipts of horseback riders, jockeys, and trainers from race purses at New Mexico horse racetracks and receipts of racetracks from gross amounts wagered.

How to Register for a New Mexico Gross Receipts Tax Permit

You can apply for a Business Tax Identification Number online through the Taxpayer Access Point website. Alternatively, you may submit the ACD-31015 Business Tax Registration form by appointment at any district tax office.

Discover how to obtain a seller's permit in every US state.

Do I Need a New Mexico Gross Receipts Tax License if I’m Only a Wholesaler? 

Yes, you need a state tax permit even if you’re a wholesaler. Wholesalers can obtain a Nontaxable Transaction Certificate (NTTC), which allows them to purchase items for resale without being charged New Mexico sales tax.

How to Collect Gross Receipts Tax in New Mexico

New Mexico uses destination-based sales tax sourcing for both in-state and out-of-state sellers. This means you must charge the sales tax rate applicable to the buyer’s shipping address when selling to a resident of New Mexico.

Should You Collect Gross Receipts Tax on Shipping Charges in New Mexico?

Yes, delivery charges for taxable products are subject to sales tax, whether they are included on the same invoice as the product or invoiced separately.

How to File and Pay Gross Receipts Tax in New Mexico

There are multiple ways to file and pay New Mexico sales tax:

• Automated: Let Zamp handle your New Mexico sales tax filing and remittance, so you won’t have to deal with sales tax returns ever again.
• File online: Pay online at the department website, Taxpayer Access Point (TAP).
• By mail: Send a check or money order to the Taxation and Revenue Department with a payment voucher to:

P.O. Box 25128

Santa Fe, NM 87504-5128

Explore how you can file and pay sales tax in other US states.

FAQs on Paying and Filing New Mexico Gross Receipts Tax

What Is Compensating Tax?

Compensating tax is charged when you use goods, services, licenses, or franchises bought from outside New Mexico, and no sales tax was paid at the time of purchase. It also applies if a manufacturer uses what they produce.

What Is the Penalty for Filing and/or Paying New Mexico Gross Receipts Tax Late?

You’ll need to pay a minimum penalty of $5 for any tax return filed late.

How Often Do I Need to File and Pay Gross Receipts Tax in New Mexico?

Your filing schedule depends on how much tax you collect:

• Monthly: Taxes collected average over $200 per month. You can also choose to file monthly, regardless of the tax amount collected.
• Quarterly: Taxes collected are less than $600 or an average of less than $200 per month in a quarter.
• Semiannually: Taxes collected are less than $1,200 or an average of under $200 per month in a 6-month period.

All taxes are due by the 25th of the month following the end of the tax period.

New Mexico Gross Receipts Tax Due Dates

New Mexico monthly sales tax filing due dates:

Taxable Period	Filing Due Date
January 2025	February 25, 2025
February 2025	March 25, 2025
March 2025	April 25, 2025
April 2025	May 26, 2025
May 2025	June 26, 2025
June 2025	July 25, 2025
July 2025	August 25, 2025
August 2025	September 25, 2025
September 2025	October 25, 2025
October 2025	November 25, 2025
November 2025	December 25, 2025
December 2025	January 26, 2026

New Mexico quarterly sales tax filing due dates:

Taxable Period	Filing Due Date
Q1 (Jan-March) 2025	April 25, 2025
Q2 (Apr-June) 2025	July 25, 2025
Q3 (July-Sept) 2025	October 25, 2025
Q4 (Oct-Dec) 2025	January 26, 2026

New Mexico semi-annual sales tax filing due dates:

Taxable Period	Filing Due Date
Jan 1-Jun 30	July 25, 2025
Jul 1-Dec 30	January 26, 2026

Let The Experts Handle Your New Mexico Sales Tax Filing

Sales tax shouldn’t slow you down — and with Zamp, it won’t.

Our platform offers quick setup, accurate rate calculations, and effortless one-click registration and filing.

Start with Zamp today so you can focus on growing your business.