New Mexico Sales Tax Guide for E-Commerce Retailers
Fast Facts About New Mexico Gross Receipts Tax (AKA Sales Tax)
Note: Unlike most other US states, New Mexico has a “gross receipts tax” rather than a sales tax. The difference is that gross receipts tax is charged on businesses rather than by businesses to consumers. It is handled similarly to sales tax in that the business generally passes the gross receipts tax onto the consumer.
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New Mexico state sales tax rate |
5.125% |
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Does New Mexico have local sales tax rates? |
Yes |
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New Mexico taxing authority |
Taxation and Revenue |
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New Mexico sales tax questions phone number |
1-866-285-2996 |
Am I required to collect sales tax in New Mexico?
Businesses that have an employee, location (including inventory in a warehouse), or who do other business in the state are required to register for a sales tax permit and collect sales tax from buyers in New Mexico.
E-commerce businesses with economic nexus in New Mexico are also required to register and collect.
You have economic nexus in New Mexico if you made more than $100,000 in sales to buyers in New Mexico in the previous calendar year.
How to Register for a New Mexico Sales Tax Permit
Register for a New Mexico sales tax permit online at New Mexico Taxation and Revenue.
Need help? Contact us for help with your New Mexico sales tax registration.
How to Collect New Mexico Sales Tax
New Mexico is a destination-based sales tax state. This means that when making a sale to a buyer in New Mexico, the seller is required to charge sales tax at the buyer’s ship-to address. For example, say your business is located in Carlsbad, New Mexico but you make a sale to a buyer in Las Cruces. You’d charge the combined state + local Las Cruces sales tax rate to your buyer.
Learn more about origin and destination-based sales tax sourcing here.
Learn more about how to collect the right amount of state plus local sales tax here.
Is shipping taxable in New Mexico?
Yes, the amount you charge your customer for shipping is subject to Arkansas sales tax. But, in general, if the item isn’t taxable, then the shipping is also not taxable, even in states where shipping is otherwise taxable.
New Mexico Sales Tax Due Dates
New Mexico sales tax is due on the 25th day of the month following the end of the taxable period. For example, if your business is required to file and pay sales tax quarterly, your Q1 (January-March) sales tax return would be due on April 25th.
How to File Sales Tax in New Mexico
When your New Mexico sales tax due date rolls around, you can either file yourself online or let a partner like HOST take this onerous task off your plate.
Learn more about handing off your sales tax filings to HOST here!
More about New Mexico Sales Tax
Learn more about New Mexico gross receipts tax (aka sales tax) at New Mexico Taxation and Revenue.