Standard rate
The standard sales tax rate in New Mexico for 2024 is 5.125%.
Who is obliged to register sales tax in New Mexico
If you engage in business in New Mexico must register with the Taxation and Revenue Department (TRD) to take the CRS identification number.
An exception: business is exempt from gross receipts (doesn’t meet threshold), withholding, or compensating tax by state law.
Threshold
Remote sellers who lack a physical presence in New Mexico with a total previous calendar year taxable gross receipts of at least $100,000 are considered to be engaging in business in New Mexico and must pay sales tax.
Marketplace thresholds by state
The special rules are applicable to the SAAS business.
Software as Service Tax Thresholds by state.
Online Marketplaces
Marketplace providers are able to fill out tax reports and pay taxes on behalf of their marketplace sellers.
Please note, that marketplace sellers may still have to file a return but may be able to claim a deduction for eligible receipts that were reported and paid on their behalf by the marketplace provider.
Registration procedure
Tax Department offers two options to obtain a CRS identification number. You can submit an application (form ACD-31015) for Business Registration to any local tax office.
Sales tax payment and filing date
Your filing frequency can be located on your Registration Certificate received from the Department. Each tax return is due on or before the 25th of the month following the end of the tax period that is being reported.
Penalty and interest
Penalty for failure to pay or file on time is calculated at a rate of 2% of the total tax due per month (any fraction of a month is a full month). The minimum penalty is $5, maximum is 20%.
New Mexico Sales Tax Holiday
Back-to-School Sales Tax Holiday:
Dates: August 2-4, 2024.
Items Exempt:
- Clothing and footwear priced under $100 per item (excluding accessories, athletic clothing, and protective clothing).
- School supplies priced under $30 per item.
- Computers priced under $1,000.
- Computer peripherals priced under $500.
- Book bags, backpacks, maps, and globes priced under $100.
New Mexico Sales Tax Nexus
- Physical Nexus: New Mexico establishes physical Nexus through a physical presence such as offices, warehouses, or employees in the state.
- Economic Nexus: Remote sellers must collect and remit sales tax if they have $100,000 or more in gross receipts from sales in New Mexico in the previous calendar year.