Estimate only — not tax advice. For decisions specific to your situation, consult a qualified professional. See methodology and sources.
New Mexico Sales Tax
Gross receipts tax
State rate
4.88%
Average combined (state + local)
7.62%
Category exemptions
| Category | Rule | Detail |
|---|---|---|
| Groceries | Exempt | Exempt since 2005 (Gross Receipts Tax) |
| Clothing | Taxed (full rate) | Everyday apparel and footwear. |
| Prescription drugs | Exempt | Prescribed medications dispensed by a licensed pharmacist. |
New Mexico sales tax holiday
Back-to-School Tax Holiday
When: First weekend of August
Items: Clothing < $100, computers < $1,000, school supplies < $30
Example: $100 purchase
- State sales tax only: $4.88
- Combined (state + average local): $7.62
- Total with combined tax: $107.62
Major cities in New Mexico
| City | Combined rate | vs state avg |
|---|---|---|
| Albuquerque | 7.88% | +0.25% |
| Las Cruces | 8.13% | +0.50% |
| Rio Rancho | 7.63% | +0.00% |
| Santa Fe | 8.44% | +0.82% |
| Roswell | 7.69% | +0.07% |
Border shopping — vs neighboring states
For larger purchases, driving to a neighbor with lower combined rate can save real money.
| State | State rate | Avg combined | vs NM | Save on $1,000 |
|---|---|---|---|---|
| New Mexico (current) | 4.88% | 7.62% | — | — |
| Utah | 4.85% | 7.44% | -0.18% | $1.80 |
| Colorado | 2.90% | 7.82% | +0.20% | — |
| Texas | 6.25% | 8.20% | +0.58% | — |
| Arizona | 5.60% | 8.43% | +0.81% | — |
| Oklahoma | 4.50% | 9.01% | +1.39% | — |
Common questions
- What is the sales tax rate in New Mexico?
- New Mexico levies a 4.88% state sales tax. With local taxes added, the statewide average combined rate is 7.62%. Actual rate at the register depends on your city and county.
- Does New Mexico tax groceries?
- Groceries are exempt from state sales tax in New Mexico. Exempt since 2005 (Gross Receipts Tax)
- Does New Mexico have a sales tax holiday?
- Yes. New Mexico runs Back-to-School Tax Holiday first weekend of august. Eligible items: clothing < $100, computers < $1,000, school supplies < $30.
- Who collects sales tax in New Mexico?
- The New Mexico Department of Revenue collects state-level sales tax; counties and cities add local rates that are remitted through the same return. Out-of-state sellers shipping to New Mexico must collect if they exceed economic nexus thresholds (typically $100k in sales or 200 transactions).
Full data sources and formulas: /sources.
Estimate only — not tax advice. Local rates vary by city and county — your actual rate at the register may differ from the state average. Category-specific exemptions (groceries, prescription drugs, clothing) and tax holidays change by year; check the New Mexico DOR for current rules. All states →
Last reviewed: · Beforeview Editorial · editorial policy