Sales Tax and Reverse Sales Tax Calculator New Mexico

NEW MEXICO [Multidirectional Calculator]
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  • Amount Before Tax ${{amountBeforeTax}}
  • Sales Tax Rate {{SalesTaxRate}}%
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New Mexico – NM Sales Tax Calculator: User Guide

New Mexico, dubbed as "Land of Enchantment," is a state located in the Southwestern region of the United States. The state is famous for its varied wildlife, colorful history, sprawling landscapes, diverse culture, cheap cost of living, laid-back lifestyle, sunny climate, and rising economy.

All these aforementioned perks are enough for many people to fall in love with the NM and settle here.

If you are planning to start, move, or expand your business in the Land of Enchantment, you should learn to deal with NM Sales Tax. Wherefore, our experts have compiled a comprehensive guide supported with a handy New Mexico Sales Tax Calculator, making your decision a lot easier.


New Mexico Sales Tax Facts:

  • Technically, New Mexico doesn't levy a sales tax. Instead, businesses are charged with a gross receipts tax. This tax is imposed on persons engaged in business levied at state, county, and city levels. Businesses usually pass this tax to the consumer, either explicitly spelling it out on the invoice or adding it to the price.
  • The gross receipts tax rate charged on a state level is 5.125%, while county and city level taxes add up to a total of 4.125%.
  • Taos Ski Valley, New Mexico, is among the cities that charge the highest possible combined sales tax rate of 9.2500%.
  • Capitan, New Mexico, is among the cities that charge the lowest possible combined sales tax rate of 6.8125%.
  • Prescription drugs and Groceries (except for food intended for immediate consumption such as food ordered at a restaurant) are exempted from New Mexico Gross Receipt Tax.
  • Gross receipts tax (similar to the Sales Tax) rate in New Mexico is lower than 69.2% of states in the US.
  • New Mexico has a Gross receipts tax holiday, where 4 types of items, including Clothing, Computer Equipment, Computers, and School Supplies can be bought tax-free. The holiday starts from August 2nd till August 4th every year.
  • Sales and leases of both tangible and intangible properties, as well as sales and performances of most services, are taxable in New Mexico.
  • Items for resale, improvement, or used as raw materials for individuals and companies can be bought tax-free using New Mexico Gross Receipts Tax Exemption Form.
  • New Mexico has "Compensation tax" instead of Use Tax. The compensation tax is levied on the buyer who buys property, services, or some combination of property and services from out-of-state sellers who don't charge gross receipts tax.

How to calculate the Gross Receipts Tax in New Mexico?

Businesses and Sellers who have Nexus are charged with gross receipts tax by New Mexico on the retail sales and lease of tangible personal property and sales and performances of most services taxable service.

This tax is usually passed on to end consumers either explicitly spelling it out on the invoice or adding it to the price while staying in compliance with state laws and avoid penalties and interest.


The gross receipts tax determined on four factors:

  1. Nexus: It is a connection of business with a state. The business is only liable to pay taxes to the states with Nexus.
  2. Location and Products or Services: The gross receipts tax rate varies from product to product and location to location. You must check the Gross Receipts tax rate applicable to your product according to the product category, county, and city in New
  3. Exemptions: Almost all tangible goods and certain services are eligible for gross receipts tax regulation. However, Prescription drugs and Groceries (except for food that is intended for immediate consumption such as food ordered at a restaurant) are exempted from New Mexico's gross receipts tax. You should check with the New Mexico state government to update which goods and services sold in New Mexico are subject to gross receipts tax.

To calculate Gross Receipts tax in New Mexico, follow the steps below:

Step 1 – Determine your Nexus:

As a business owner, you are only required to pay Gross Receipts tax if you are eligible and have Gross Receipts tax Nexus in the New Mexico State. And to determine your Nexus in New Mexico, you must have any of the following:

  • A person who performs research and development services outside New Mexico, but end up using the product of the service in New Mexico.
  • Having a business location like an office in the state.
  • An employee or independent contractor, salesperson, or other agents present in NM.
  • Leasing equipment used in New Mexico.
  • Performing services in New Mexico.
  • Licensing the use of intangible property in New Mexico.
  • Having inventory or goods stored in a warehouse in New
  • Transporting property in New Mexico using the taxpayer's vehicles.

Step 2 – Determine the Gross Receipts Tax Rate:

Once you have determined that your Nexus is with New Mexico, next is to deduce the Gross Receipts tax rate (State + Local Gross Receipts tax) applicable on your product, for which you can refer the table below:



New Mexico Gross Receipts Tax Rates By County
County State Rate County Rate Total Sales Tax
Bernalillo 5.125% 1.3125% 6.4375%
Catron 5.125% 0.5625% 5.6875%
Chaves 5.125% 1.3958% 6.5208%
Cibola 5.125% 1.6875% 6.8125%
Colfax 5.125% 0.9583% 6.0833%
Curry 5.125% 1.0000% 6.1250%
De Baca 5.125% 1.5625% 6.6875%
Doña Ana 5.125% 1.6250% 6.7500%
Eddy 5.125% 0.8333% 5.9583%
Grant 5.125% 1.4375% 6.5625%
Guadalupe 5.125% 1.3125% 6.4375%
Harding 5.125% 1.0000% 6.1250%
Hidalgo 5.125% 1.0625% 6.1875%
Lea 5.125% 0.3750% 5.5000%
Lincoln 5.125% 0.3750% 5.5000%
Los Alamos 5.125% 2.1875% 7.3125%
Luna 5.125% 1.7500% 6.8750%
McKinley 5.125% 1.6250% 6.7500%
Mora 5.125% 1.6458% 6.7708%
Otero 5.125% 1.1875% 6.3125%
Quay 5.125% 1.5625% 6.6875%
Rio Arriba 5.125% 1.7500% 6.8750%
Roosevelt 5.125% 1.5000% 6.6250%
San Juan 5.125% 1.4375% 6.5625%
San Miguel 5.125% 1.7083% 6.8333%
Sandoval 5.125% 1.2500% 6.3750%
Santa Fe 5.125% 2.0000% 7.1250%
Sierra 5.125% 1.8125% 6.9375%
Socorro 5.125% 1.2500% 6.3750%
Taos 5.125% 2.1875% 7.3125%
Torrance 5.125% 1.6250% 6.7500%
Union 5.125% 0.9375% 6.0625%
Valencia 5.125% 1.7500% 6.8750%
New Mexico Gross Receipts Tax Rates By City
City State Rate County + City Rate Total Sales Tax
Alamogordo 5.125% 2.8750% 8.0000%
Albuquerque 5.125% 2.7500% 7.8750%
Angel Fire 5.125% 2.6458% 7.7708%
Anthony 5.125% 3.2500% 8.3750%
Artesia 5.125% 2.7708% 7.8958%
Aztec 5.125% 3.1250% 8.2500%
Bayard 5.125% 2.7500% 7.8750%
Belen 5.125% 3.1875% 8.3125%
Bernalillo 5.125% 2.0625% 7.1875%
Bloomfield 5.125% 3.0625% 8.1875%
Bosque Farms 5.125% 3.4250% 8.5500%
Capitan 5.125% 1.6875% 6.8125%
Carlsbad 5.125% 2.5208% 7.6458%
Carrizozo 5.125% 1.8750% 7.0000%
Causey 5.125% 2.0000% 7.1250%
Chama 5.125% 3.4375% 8.5625%
Cimarron 5.125% 3.0208% 8.1458%
Clayton 5.125% 3.0000% 8.1250%
Cloudcroft 5.125% 2.6250% 7.7500%
Clovis 5.125% 3.0625% 8.1875%
Columbus 5.125% 2.8125% 7.9375%
Corona 5.125% 1.8125% 6.9375%
Corrales 5.125% 2.6875% 7.8125%
Cuba 5.125% 3.1875% 8.3125%
Deming 5.125% 3.1250% 8.2500%
Des Moines 5.125% 2.6250% 7.7500%
Dexter 5.125% 2.2708% 7.3958%
Eagle Nest 5.125% 2.3958% 7.5208%
Edgewood 5.125% 3.0625% 8.1875%
Elephant Butte 5.125% 3.0625% 8.1875%
Elida 5.125% 2.8750% 8.0000%
Española 5.125% 3.8125% 8.9375%
Estancia 5.125% 3.0625% 8.1875%
Eunice 5.125% 2.1875% 7.3125%
Farmington 5.125% 3.1250% 8.2500%
Floyd 5.125% 2.0000% 7.1250%
Folsom 5.125% 2.3750% 7.5000%
Fort Sumner 5.125% 2.8750% 8.0000%
Gallup 5.125% 3.1875% 8.3125%
Grady 5.125% 1.8125% 6.9375%
Grants 5.125% 3.0000% 8.1250%
Hagerman 5.125% 2.4583% 7.5833%
Hatch 5.125% 2.6875% 7.8125%
Hobbs 5.125% 1.6875% 6.8125%
Hope 5.125% 1.7083% 6.8333%
House 5.125% 2.8750% 8.0000%
Hurley 5.125% 2.5000% 7.6250%
Jal 5.125% 2.3125% 7.4375%
Jemez Springs 5.125% 2.3125% 7.4375%
Lake Arthur 5.125% 1.7708% 6.8958%
Las Cruces 5.125% 3.1875% 8.3125%
Las Vegas 5.125% 3.2708% 8.3958%
Logan 5.125% 3.2500% 8.3750%
Lordsburg 5.125% 2.6250% 7.7500%
Los Lunas 5.125% 3.5500% 8.6750%
Los Ranchos de Albuquerque 5.125% 2.3125% 7.4375%
Loving 5.125% 1.8958% 7.0208%
Lovington 5.125% 2.1250% 7.2500%
Magdalena 5.125% 2.1875% 7.3125%
Maxwell 5.125% 1.7083% 6.8333%
Melrose 5.125% 2.6250% 7.7500%
Mesilla 5.125% 3.0625% 8.1875%
Milan 5.125% 2.6250% 7.7500%
Moriarty 5.125% 2.5625% 7.6875%
Mosquero 5.125% 1.8125% 6.9375%
Mountainair 5.125% 2.8125% 7.9375%
Pecos 5.125% 2.6458% 7.7708%
Peralta 5.125% 2.8125% 7.9375%
Portales 5.125% 3.0625% 8.1875%
Questa 5.125% 3.2500% 8.3750%
Raton 5.125% 3.3833% 8.5083%
Red River 5.125% 3.5000% 8.6250%
Reserve 5.125% 2.2500% 7.3750%
Rio Rancho 5.125% 2.5625% 7.6875%
Roswell 5.125% 2.7083% 7.8333%
Roy 5.125% 2.1875% 7.3125%
Ruidoso 5.125% 3.3125% 8.4375%
Ruidoso Downs 5.125% 2.3125% 7.4375%
San Ysidro 5.125% 1.7083% 6.8333%
Santa Clara 5.125% 2.5000% 7.6250%
Santa Fe 5.125% 3.3125% 8.4375%
Santa Rosa 5.125% 2.8750% 8.0000%
Silver City 5.125% 2.8750% 8.0000%
Socorro 5.125% 2.3125% 7.4375%
Springer 5.125% 2.6458% 7.7708%
Sunland Park 5.125% 3.3125% 8.4375%
Taos 5.125% 3.3750% 8.5000%
Taos Ski Valley 5.125% 4.1250% 9.2500%
Tatum 5.125% 1.6875% 6.8125%
Texico 5.125% 2.4375% 7.5625%
Tijeras 5.125% 2.7500% 7.8750%
Truth or Consequences 5.125% 3.3750% 8.5000%
Tucumcari 5.125% 3.2500% 8.3750%
Tularosa 5.125% 2.6250% 7.7500%
Vaughn 5.125% 3.1250% 8.2500%
Virden 5.125% 1.5625% 6.6875%
Wagon Mound 5.125% 2.6458% 7.7708%
Willard 5.125% 2.4375% 7.5625%
Williamsburg 5.125% 3.0625% 8.1875%

Step 4 – Calculate Gross Receipts tax:

After determining the Gross Receipts tax rate according to the location and type of purchases, it is easy to calculate the Gross Receipts tax amount charged on the product and gross price (amount after tax) of a product.

Example # 1:

For instance, you are selling a Cap on your store in Mora, New Mexico, having a net price tag of $55, and you are intended to pass on to your customer. The amount that a customer has to pay (including Gross Receipts tax) on a check out would be:

Manual Method:

Net Price (amount before Tax) of a Cap: $5

Total Gross Receipts tax rate: 0.00% (Mora) + 1.6458% (Mora County) + 5.125% (New Mexico State) = 6.7708%

Total Gross Receipts tax amount = $5 x 6.7708% = $0.34

Gross Price (Amount after Tax) = 5 + 0.34 = $5.34

It means the buyer has to pay $5.34 for a Cap on a cash counter.


Using our Gross Receipts tax Calculator:

All of the steps mentioned above can be skipped to get an instant result using our Gross Receipts tax Calculator. All you need is:

  1. Input the $5 Net Price of the Cap as Amount Before Tax
  2. Input or select 7708% of the combined Gross Receipts tax rate on the Tax Rate menu.

Our calculator will automatically calculate the result, and represents it in 3 different forms, as shown in the image below:

new-mexico-sales-tax-calculator

Reverse Gross Receipts tax Calculation

In the example above, we have explained to you to calculate the Gross Receipts tax amount payable in a product, and the Gross Price of the Product.

But there are also instances when you are required to deduce how much Gross Receipts tax buyer has actually paid on a product, or you may want to check the accuracy of the Gross Receipts tax indicated on your item's receipt.

This is where the Reverse Gross Receipts tax Calculation Kicks in. And luckily, our New Mexico Sales tax Calculator can perform this calculation like a Pro.


Example:

Your buyer has paid $15 for a Jeans at your store in Moquino, New Mexico. Now the buyer is inquiring how much the Jeans actually cost before the Gross Receipts tax was added. So you need to follow the steps below to determine the amount before tax (net price) of a Jeans:

Gross Price (Amount after Tax) of Jeans: $15

Total Gross Receipts tax rate: 0.00% (Moquino) + 1.6875% (Cibola County) + 5.125% (New Mexico State) = 6.8125%.

Manual Method:

Gross Price with Gross Receipts tax = [Net Price × (tax rate in decimal form + 1)]

15 = [Net Price x ((6.8125/100) + 1)]

15 = Net Price x 1.07

$14 = Net Price

So the original Price (net price) of the Jeans was $14.


Using our Gross Receipts tax Calculator:

You can also use our Sales tax Calculator for Reverse Gross Receipts tax calculation to skip the aforementioned manual method. All you need is:

  1. Input the $15 Gross Price of Jeans as Amount after Tax
  2. Input or select 6.8125% of combined Gross Receipts tax Rate on the Tax Rate

Our calculator will automatically calculate the result and represents it in 3 different forms.

Also Check: New Mexico Paycheck Calculator to Calculate your Paycheck in New Mexico State including all taxes and take home pay.

FAQs

Answer: Gross Receipt Tax is a tax imposed on persons engaged in business levied at state, county, and city levels. Businesses usually pass this tax to the consumer, either explicitly spelling it out on the invoice or adding it to the price. This tax is charged on a state level at 5.125%, while county and city level taxes add up to a total of 4.125%.

Answer: Prescription drugs and Groceries (except for food that is intended for immediate consumption such as food ordered at a restaurant) are exempted from New Mexico Gross Receipt Tax.

Answer: The combined Gross Receipt Tax in Santa Fe, New Mexico, is 8.4375%, consisting of 1.3125% of Santa Fe City tax, 2.0% of Santa Fe County Tax, and 5.1250% of New Mexico State tax.

Answer: Businesses and Sellers who have Nexus are charged with gross receipts tax by New Mexico on the retail sales and lease of tangible personal property and sales and performances of most services taxable service.

Answer: The combined Gross Receipt Tax Albuquerque, New Mexico, is 7.8750%, which consists of 1.4375% of Albuquerque City tax, 1.3125% of Bernalillo County Tax and 5.1250% of New Mexico State tax.

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