New Mexico Sales Tax Rate 2026: 4.875% State, 7.68% Avg. Combined
New Mexico’s state sales tax rate is 4.875%. Cities, counties and special districts add their own rates on top, so the total depends on where the order is delivered. The average combined state and local rate is 7.68%. New Mexico’s tax is a gross receipts tax (GRT) on the seller, but it is normally passed on to the customer like a sales tax.
| New Mexico sales tax (2026) | Rate |
|---|---|
| State rate | 4.875% |
| Average local rate | 2.80% |
| Average combined rate | 7.68% |
Rates as of July 1, 2026, from the Tax Foundation. The exact rate on an order depends on the delivery address. Look up the exact rate for any New Mexico ZIP code with our sales tax calculator.
New Mexico does not have a traditional sales tax. Like Hawaii, it uses a Gross Receipts Tax (GRT) imposed on the seller’s gross income from business activity. The GRT applies to virtually everything — goods, services, SaaS, and digital products — making New Mexico one of the broadest-base consumption tax states. New Mexico is an SST member.
Quick Reference
Section titled “Quick Reference”| Criterion | Detail |
|---|---|
| State Rate | 4.875% (GRT) |
| Economic Nexus Threshold | $100,000 gross receipts (rolling 12 months) |
| Transaction Threshold | None |
| Digital Goods / SaaS | Taxable |
| Typical Filing Frequency | Monthly |
| SST Member | Yes |
| Registration Portal | tap.state.nm.us |
New Mexico GRT — Not a Traditional Sales Tax
Section titled “New Mexico GRT — Not a Traditional Sales Tax”New Mexico’s Gross Receipts Tax (GRT) is imposed on the seller’s gross receipts from doing business in New Mexico. Unlike a retail sales tax (where the obligation is the consumer’s), the GRT is legally the seller’s obligation. Most sellers pass it through to customers at checkout.
Key GRT structural features:
- Applies to gross receipts from selling property, services, and licenses in New Mexico
- Broad base: covers goods, services, SaaS, digital products, rentals, and professional services
- The GRT is deducted from the seller’s gross income before New Mexico income tax (it’s a business cost)
For remote sellers, New Mexico enacted economic nexus provisions that bring remote businesses into the GRT system once they cross the $100,000 threshold.
Economic Nexus
Section titled “Economic Nexus”For informational purposes only · Not legal or tax advice · Consult a licensed tax professional · Rules as of 2026
New Mexico’s economic nexus threshold is $100,000 in gross receipts from New Mexico sources in the prior calendar year. “Gross receipts” includes revenue from all sources — goods, services, and digital products all count.
New Mexico eliminated its 200-transaction alternative threshold before 2025.
Tax Rates
Section titled “Tax Rates”New Mexico sales tax calculator
Every rate that applies at a US ZIP code, worked out on your order.
Sales tax · New Mexico 87102
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Collecting sales tax in New Mexico and beyond?
GoodVat tracks your economic nexus in every state, registers you, charges the right rate on every order and files your returns.
Calculation only, not legal or tax advice. Verify with the state Department of Revenue before you file. State averages: Tax Foundation, July 1, 2026.
New Mexico’s GRT has a state component and local components:
- State GRT rate: 4.875% (cut from 5% on July 1, 2023)
- Local (county/municipal) rates: 0.125%–3.5625% additional
- Combined rates: typically 6.5%–9.5% depending on location
- Combined in Albuquerque: approximately 7.625%
- Combined in Santa Fe: approximately 8.1875%
New Mexico rates are set by the Taxation and Revenue Department for each county and municipality. The rates change periodically and require current lookup by destination address.
Digital Goods and SaaS
Section titled “Digital Goods and SaaS”New Mexico taxes digital goods and SaaS under its GRT framework. Because the GRT applies to all gross receipts from selling property or services in New Mexico, there is no digital goods exemption.
Taxable under New Mexico GRT:
- SaaS — taxable; treated as a service provided in New Mexico
- Downloaded software — taxable
- Digital content (streaming, music, ebooks) — taxable
- Professional services delivered remotely — taxable
- Online subscriptions — taxable
The broad GRT base means essentially all revenue streams from New Mexico customers are taxable once you cross the threshold.
Registration
Section titled “Registration”New Mexico is an SST member state. Register through the SSTRS at streamlinedsalestax.org for multi-state coverage including New Mexico.
For New Mexico-only registration:
- Go to the Taxpayer Access Point (TAP): tap.state.nm.us
- Create an account and register for a CRS (Combined Reporting System) Identification Number
- Select GRT as the tax type
- Provide EIN and business details
- You will receive a New Mexico CRS ID number
Registration is free.
Foreign Sellers
Section titled “Foreign Sellers”New Mexico accepts foreign business registrations. A US EIN is required.
Filing Frequency and Deadlines
Section titled “Filing Frequency and Deadlines”| Annual Tax Liability | Filing Frequency |
|---|---|
| Less than $1,200 | Annual |
| $1,200–$12,000 | Quarterly |
| More than $12,000 | Monthly |
Monthly due dates: Returns are due by the 25th of the following month — note New Mexico uses the 25th, not the 20th.
Returns are filed through the New Mexico TAP portal.
Compliance Notes
Section titled “Compliance Notes”GRT is the seller’s tax: Like Hawaii’s GET, New Mexico’s GRT is legally owed by the seller. If you fail to collect it from customers, you still owe it. Factor this into pricing.
25th filing deadline: New Mexico uses the 25th of the following month — different from the 20th used by most states.
Broadest-base tax in practice: New Mexico’s GRT applies to services that most sales tax states do not touch. If you provide any professional or digital services into New Mexico, they are taxable.
SST member: Use the SSTRS for multi-state registration covering New Mexico.
Local rate complexity: New Mexico’s combined rates vary by county and city and change frequently. Use a rate API for accurate destination-based lookups.
New Mexico Sales Tax FAQ
Section titled “New Mexico Sales Tax FAQ”What is the sales tax rate in New Mexico?
Section titled “What is the sales tax rate in New Mexico?”New Mexico’s state sales tax rate is 4.875%. Local taxes are added on top, and the average combined state and local rate is 7.68% (Tax Foundation, July 2026). The exact rate depends on the delivery address. New Mexico’s tax is a gross receipts tax (GRT) on the seller, but it is normally passed on to the customer like a sales tax.
What is the New Mexico economic nexus threshold?
Section titled “What is the New Mexico economic nexus threshold?”Remote sellers must register and collect New Mexico sales tax once they make more than $100,000 in gross receipts into the state (rolling 12 months). There is no separate transaction-count threshold.
Is SaaS taxable in New Mexico?
Section titled “Is SaaS taxable in New Mexico?”Yes. New Mexico generally taxes SaaS and digital goods. See the Digital Goods and SaaS section above for the details.
How often do you file sales tax in New Mexico?
Section titled “How often do you file sales tax in New Mexico?”Most sellers file monthly. New Mexico assigns your filing frequency when you register, based on how much tax you collect, so lower-volume sellers may file less often.