Disclaimer: All rates and figures on this page are estimates for general informational purposes only and are not financial, tax, or legal advice. Sales tax rates change and vary by city, county, and the type of item purchased. Verify current rates with the New Mexico Department of Revenue before relying on these figures, and consult a qualified tax professional for specific guidance.
Calculate sales tax on any purchase in New Mexico. The state sales tax rate is 4.875%, and when combined with the average local rate of 2.8%, the total average in New Mexico comes to 7.67%. Actual rates vary by city and county.
New Mexico Sales Tax Rates
- State Rate
- 4.875%
- Avg Local Rate
- 2.8%
- Combined Average
- 7.67%
Quick Reference
New Mexico uses a gross receipts tax instead of a traditional sales tax.
State income tax: 5.9% top rate
New Mexico Sales Tax Table
Quick reference for common purchase amounts at the 7.67% combined average rate:
| Purchase Price | Sales Tax | Total |
|---|---|---|
| $10 | $0.77 | $10.77 |
| $25 | $1.92 | $26.92 |
| $50 | $3.83 | $53.84 |
| $100 | $7.67 | $107.67 |
| $250 | $19.18 | $269.18 |
| $500 | $38.35 | $538.35 |
| $1,000 | $76.70 | $1076.70 |
| $2,500 | $191.75 | $2691.75 |
| $5,000 | $383.50 | $5383.50 |
How New Mexico Sales Tax Works
Sales tax in New Mexico is collected at the point of sale on most tangible goods and some services. The state portion of 4.875% is uniform statewide, while local jurisdictions may add their own rates, averaging 2.8% across the state. Certain items like groceries and prescription medications may be exempt or taxed at reduced rates.
When budgeting in New Mexico, remember that sales tax affects your purchasing power. With a median home value of $259,500 and a property tax rate of 0.67%, understanding all taxes helps you make informed financial decisions.
What Is and Is Not Taxed in New Mexico
Unprepared groceries are exempt from New Mexico state sales tax — food sold by retail food stores is deductible from gross receipts tax.
Prescription medicines are exempt in New Mexico, as they are in every state that levies a sales tax; over-the-counter drugs and most medical supplies are treated separately and are frequently taxable.
Out-of-state sellers must register and collect New Mexico tax once they cross the state's economic nexus threshold, a rule that follows from the 2018 Supreme Court decision in South Dakota v. Wayfair. Below that threshold, the buyer technically owes use tax instead.
New Mexico Sales Tax vs. the National Picture
At 7.675% combined (state plus average local), New Mexico's sales tax ranks 17th-highest nationally — above the national median of 7%.
The 4.875% state rate does most of the work in New Mexico, with local jurisdictions adding an average of 2.8%.
Combined state-plus-local averages nearby: Arizona (8.54%); Colorado (7.89%); Oklahoma (9.06%); Texas (8.2%). Colorado has the lowest nearby rate at 7.89%.