New Mexico sales tax rates and estimate (2026)

New Mexico sales tax rate

New Mexico charges a statewide sales tax of 4.875%. Cities, counties and special districts can add their own local sales taxes on top, which brings the population-weighted average combined rate to about 7.67% in 2026. Because local rates differ from place to place, the exact rate at a given address may be higher or lower than the average.

How to calculate New Mexico sales tax

Multiply the price by the rate: sales tax = price × rate ÷ 100, then add it to the price for the total. For a $100 purchase at the combined 7.67% rate, the tax is $7.67 and the total is $107.67. Use the calculator above for any amount, and swap in your local rate if you know it.

Rates as of January 1, 2026 (source: Tax Foundation). Verify the current rate with the relevant New Mexico state or local tax authority before invoicing or filing.

Last reviewed October 20, 2026 by the CedarBill Editorial Team. Thresholds and exemptions: Sales Tax Institute, AARP and each state tax authority. See how sources are selected and updated in our methodology.

New Mexico sales tax at a glance

What's taxed in New Mexico

Groceries (food for home consumption) are exempt from New Mexico's state sales tax. Clothing is taxed like any other goods. Whether services are taxable depends on the state and the type of service. If you invoice for services, confirm the rule with the New Mexico Taxation and Revenue Department before adding sales tax.

Selling into New Mexico and which rate to charge

Since the 2018 Supreme Court decision in South Dakota v. Wayfair, a business with no physical presence in New Mexico must register and collect its sales tax once sales into the state exceed $100,000. The measurement period (current or previous year, or a rolling 12 months) is set by the state, so check it before you cross the line. New Mexico is not a Streamlined Sales Tax member, so out-of-state sellers register directly with the New Mexico Taxation and Revenue Department.

New Mexico uses destination-based sourcing: charge the rate at the buyer's delivery address. That's why the same order can carry different rates in different parts of the state — and why the average above is only a reference.

Good to know about New Mexico

New Mexico levies a Gross Receipts Tax (GRT) on the seller rather than a classic sales tax. It reaches most services, so freelancers and contractors usually bill it, and since July 2021 it is sourced to where the buyer receives the goods or services.

New Mexico vs. neighboring states

Among New Mexico's neighbors, Colorado has the lowest average combined rate (7.89%) and Oklahoma the highest (9.06%). Rates matter when you ship across state lines: the buyer's state decides the tax.