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).

Estimate only - not tax advice. Methodology and sources.

New Mexico Sales Tax

Q: 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).

Gross receipts tax

State rate

4.88%

Average combined (state + local)

7.62%

New Mexico vs neighboring states

7.44%

7.62%

7.82%

8.20%

8.43%

9.01%

NM highlighted · average combined state + local rate

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 →

Sources

Last reviewed: 2026-10-08 · Reviewed by kgenots, Editor · editorial policy