State of New Mexico Flag

New Mexico Sales Tax Guide for Businesses

Sales Tax Rate
Local Taxes
Taxation and Revenue Department
Tax Line

New Mexico does not have a sales tax. It has a gross receipts tax instead. This tax is imposed on persons engaged in business in New Mexico.

In almost every case, the person engaged in business passes the tax to the consumer either separately stated or as part of the selling price. Only in its effect on the buyer does the gross receipts tax resemble a sales tax.

Generally speaking, sales and leases of goods and other property, both tangible and intangible, are taxable. Unlike many other states, sales and performances of most services are taxable in New Mexico.

Tax rules on shipping and/or handling

If the cost of shipping is passed on to the customer then that cost is considered to be taxable.

Rank City Population County Total SalesTax
1 Albuquerque 559,121 Bernalillo 7.313%
2 Las Cruces 101,643 Dona Ana 8.313%
3 Rio Rancho 94,171 Bernalillo 7.813%
4 Santa Fe 84,099 Santa Fe 8.313%
5 Roswell 48,544 Chaves 7.500%
6 Farmington 42,871 San Juan 7.625%
7 South Valley 41,660 Bernalillo 7.313%
8 Clovis 39,480 Curry 8.063%
9 Hobbs 38,416 Lea 6.813%
10 Alamogordo 30,753 Otero 8.000%
11 Carlsbad 28,957 Eddy 7.563%
12 Gallup 23,240 Mckinley 8.313%
13 Sunland Park 15,940 Dona Ana 8.438%
14 Los Lunas 15,336 Valencia 8.313%
15 Deming 14,522 Luna 7.875%
16 Chaparral 13,629 Dona Ana 7.750%
17 Las Vegas 13,386 San Miguel 8.396%
18 Artesia 12,036 Eddy 7.813%
19 Portales 11,995 Roosevelt 8.188%
20 Los Alamos 11,815 Los Alamos 7.313%

The Top 20 Most Populous Cities in New Mexico and their Gross Receipts Tax Rates (June 2017)

When are New Mexico Sales Tax Returns Due?

When you file and pay New Mexico sales tax depends on two things: your assigned filing frequency and your state’s due dates.

How often will you file sales tax returns in New Mexico?

States assign you a filing frequency when you register for your sales tax permit. In most states, how often you file sales tax is based on the amount of sales tax you collect from buyers in the state.

In New Mexico, you will be required to file and remit sales tax either monthly, quarterly, or semiannually.

How often you are required to file sales tax in New Mexico follows this general rule:

Average Monthly Tax Liability Filing Frequency
$200.00 and up Monthly
$66.67 to $199.99 Quarterly
$0 to $66.66 Semiannually

New Mexico sales tax returns are generally always due the 25th day of the month following the reporting period. If the filing due date falls on a weekend or holiday, sales tax is generally due the next business day.

2017 New Mexico Monthly Sales Tax Filing Due Dates

Taxable Period Due Date
*January February 27, 2017*
*February March 27, 2017*
March April 25, 2017
April May 25, 2017
*May June 26, 2017*
June July 25, 2017
July August 25, 2017
August September 25, 2017
September October 25, 2017
*October November 27, 2017*
*November December 26, 2017*
December January 25, 2018

*indicates a due date pushed back due to a weekend or holiday

2017 New Mexico Quarterly Sales Tax Filing Due Dates

Taxable Period Due Date
Q1 (Jan-March) April 25, 2017
Q2 (April-June) July 25, 2017
Q3 (July-Sept) October 25, 2017
Q4 (Oct-Dec) January 25, 2018

2017 New Mexico Semiannual Sales Tax Filing Due Dates

| Taxable Period | Due Date | |————————-|——————| | Semiannual 1 (Jan-June) | July 25, 2017 | | Semiannual 2 (July-Dec) | January 25, 2018 |

Click here for more info on New Mexico sales tax filing due dates.

Penalties & Interest

If you file your sales tax return after the due date, you need to add penalty and interest to the amount of tax you owe the state. If you are late filing and don’t owe the state anything, you still owe a $5 penalty. According to the state, the “Penalty is 2% per month or partial month the payment is late up to a maximum of 20% of tax due or a minimum of $5.00.” Interest is calculated at a rate of 3% on a daily basis.

How to File & Pay

Online:Click the E-File link on this page

Record Keeping Requirements

Here’s what the state says about record keeping, “New Mexico statute permits the Department to assess back 10 years, depending on the situation. The normal assessment period is three years back from the end of the year the tax was due. If you have underreported any one tax on the CRS-1 Form by more than 25%, the Department may assess back six years. If you have non-filed reports, the Department may assess back seven years. If there is evidence of tax fraud, the Department may assess back 10 years. It is in your best interest to maintain these files for 10 years in the event the Department requires information from you.”

Business Registration Requirements

Persons engaging in business in New Mexico must register with the New Mexico Taxation and Revenue Department. With few exceptions a business must hold a CRS identification number.

“Combined Reporting System,” (“CRS”) is the Department’s method for reporting the state’s major business taxes: gross receipts tax, all local option gross receipts taxes, compensating tax, and withholding tax. The CRS identification number is your state tax identification number.

New Mexico Sales Tax Holidays

Here’s a list of current New Mexico sales tax holidays:

August 4-6, 2017: “Back to School Sales Tax Holiday”

Click here for more information about this year’s sales tax holidays in the U.S., including what to do about sales tax holidays as an online seller.

Start managing your sales tax today. Be up and running in minutes Start Your Free Trial