Sales Tax for New Mexico (2026)
New Mexico (NM) Key Facts
State Sales Tax Rate
5%
Has State Sales Tax
Yes
Local Taxes May Apply
Yes
Tax Type
Sales and use tax
How This Calculator Works in New Mexico
This calculator estimates the New Mexico sales tax on your purchase amount using the state rate of 5%. Enter your purchase price to see the tax amount and total cost.
New Mexico Overview
New Mexico levies a Gross Receipts Tax (GRT) rather than a traditional sales tax, with the state rate at 5% and local additions pushing combined rates to 7-9%. The GRT applies to a very broad base including most services, but groceries became exempt in 2023. Rates vary significantly — Albuquerque is about 7.875% while Santa Fe approaches 8.44%.
How New Mexico Compares
New Mexico's sales tax rate of 5% compares to Arizona at 5.6% and Texas at 6.25%. Combined with local rates, the effective sales tax burden varies by location.
| State | Top Rate | Notes |
|---|---|---|
| Arizona | 5.6% | Arizona has a sales tax rate of 5.6%. |
| Texas | 6.25% | Texas has a sales tax rate of 6.25%. |
| Colorado | 2.9% | Colorado has a sales tax rate of 2.9%. |
New Mexico's sales tax rate of 5% compares to a national average of approximately 5.10%. This is below the national average.
Tips for New Mexico Residents
- 1New Mexico technically has a Gross Receipts Tax (GRT), not a sales tax — it's levied on the seller's gross income but typically passed to consumers.
- 2Combined GRT rates in New Mexico vary widely, from about 5% in rural areas to over 9% in some cities.
- 3Groceries are exempt from New Mexico's GRT as of 2023, ending the state's taxation of food.
- 4Prescription drugs and some medical services are exempt from the GRT.
- 5Albuquerque's combined GRT rate is approximately 7.875%, while Santa Fe's is about 8.4375%.