Sales Tax Rules
New Mexico imposes a state sales tax rate of 4.875%, with a maximum combined rate (state plus local) of 9.063% when local taxes are added. Economic nexus is triggered at $100,000 in sales — meaning out-of-state businesses that exceed this threshold must collect and remit New Mexico sales tax. SaaS and digital software products are taxable in New Mexico. Groceries are exempt from state sales tax.
SaaS Tax Details
SaaS is taxable under Gross Receipts Tax (GRT) as a license or service.
Grocery Details
Groceries are generally deductible for retailers; prepared foods are taxable.
What is the sales tax rate in New Mexico?
New Mexico's state sales tax rate is 4.875%. When local taxes are added, the maximum combined rate can reach 9.063%. The actual rate you pay depends on the county and city where the purchase is made.
What is the economic nexus threshold in New Mexico?
New Mexico requires out-of-state businesses to collect sales tax once they exceed $100,000 in sales in a calendar year. Once nexus is established, the business must register, collect, and remit New Mexico sales tax.
Is SaaS taxable in New Mexico?
Yes. New Mexico considers SaaS (Software as a Service) taxable. Businesses selling SaaS products to New Mexico customers must collect sales tax. SaaS is taxable under Gross Receipts Tax (GRT) as a license or service.
Are groceries taxed in New Mexico?
Groceries are generally exempt from sales tax in New Mexico. Groceries are generally deductible for retailers; prepared foods are taxable.
Are digital goods taxable in New Mexico?
Yes. New Mexico taxes digital goods including downloaded software, music, movies, and e-books. Businesses selling digital products to New Mexico customers should collect sales tax.
Are clothing items exempt from sales tax in New Mexico?
Clothing is subject to sales tax in New Mexico at the standard state rate.
How often do I need to file sales tax in New Mexico?
New Mexico requires sales tax filing on a Monthly, Quarterly, or Annual. Online filing is available through the official Department of Revenue portal.
Automate New Mexico Sales Tax Compliance — Partner Services
Managing sales tax across multiple states is complex. These tools automate registration, calculation, filing, and remittance so you stay compliant without the headache.
Sponsored. DataTactic may earn a referral fee from these partners. This does not affect our data or editorial content.
Official Source
New Mexico Department of Revenue
Last verified: 2026-03-26 · Always confirm current rates with your tax advisor before filing.