State guide · NM
New Mexico sales tax and property tax
What looks like a sales tax on the receipt is a tax on the seller's gross receipts, and it reaches the plumber and the mechanic as well as the store.
Facts read on official New Mexico pages on · Checked by Radif Partners · How we calculate
- State sales tax
- 4.875%
- Local sales taxes
- Yes, by address
- Groceries
- Exempt from the state rate
- Clothing
- Taxed like other goods
- Median property tax
- $1,776
- Effective property rate
- 0.64% · #35 of 51
New Mexico does not have a sales tax in the strict sense: it has a gross receipts tax, or GRT, owed by the seller on its receipts and usually passed on to the buyer as a separate line on the invoice. The state part has been 4.875% since July 1, 2023, and counties and municipalities add local option increments, so the combined rate depends on the location of the sale. Unlike most sales taxes, GRT covers most services as well as goods, from car repairs to professional fees. Food sold by SNAP-certified grocery stores and prescription drugs are deductible, clothing is taxed except during the back-to-school holiday, and cars pay a separate motor vehicle excise tax instead. Property tax is low: the median owner paid $1,776 in 2024 on a $279,900 home (Census ACS), an effective rate of 0.64%, ranked 35 of 51, helped by a 33 1/3% assessment ratio and a 3% yearly cap on residential value increases.
Total to pay
$104.88
Sales tax $4.88 · 4.88% of the price
| Price before tax | $100.00 |
| State tax · 4.875% | $4.88 |
| Local tax · 0% | $0.00 |
| Total | $104.88 |
Rule applied: general state rate. Exact local rate for an address: New Mexico rate lookup. How this is calculated.
Sales tax in New Mexico
The legal difference matters in practice. Because the gross receipts tax falls on the business, the Taxation and Revenue Department treats it as part of the seller's receipts, and when the seller passes it on it must show it separately on the invoice. The broad base is the bigger surprise for newcomers: a $500 plumbing repair owes $24.38 of state GRT before any local increment, just like a $500 microwave. Remote sellers and marketplaces collect it once they pass $100,000 of taxable New Mexico receipts in the previous calendar year.
Local increments are set by county commissions and municipal councils, collected by the state and paid back to them. Since July 1, 2025, they can change only in July, save for emergencies such as a natural disaster, so a rate looked up in July normally holds until the next July. The July 2026 schedule raised local rates in Los Ranchos de Albuquerque and much of Colfax County, including Raton, Angel Fire and Cimarron. Look up the location code on the department's map and enter the local part in the calculator above.
The July 31 to August 2, 2026 back-to-school holiday runs from the last Friday in July to the following Sunday, as set by Section 7-9-95. It covers clothing and shoes under $100 an item, computers and e-readers up to $1,000, related peripherals up to $500 and school supplies under $30, with backpacks up to $100 and calculators up to $200. A $900 laptop bought that weekend saves $43.88 of state tax. Renting a car adds a 5% leased vehicle gross receipts tax and a $2 daily surcharge on top of GRT. Feminine hygiene products have been deductible since July 1, 2022.
What the state charges, item by item
| Item | State rate | Local tax | Rule |
|---|---|---|---|
| Most goods | 4.875% | yes | New Mexico has a gross receipts tax (GRT), not a sales tax: it is imposed on the seller, who commonly passes it on to the buyer as a separately stated charge. 4.875% is the state portion; counties and municipalities add local option increments. |
| Groceries (food for home) | 0% | no | Retail food stores certified under the federal SNAP definition deduct qualifying food sales from gross receipts (Section 7-9-92); alcohol, tobacco and hot prepared food for immediate consumption are not deductible. |
| Clothing | 4.875% | yes | Clothing is subject to GRT except during the annual back-to-school holiday (items under $100). |
| Prescription drugs | 0% | no | |
| Leased vehicle gross receipts tax (short-term passenger car rentals) | 5% | Imposed in addition to GRT on qualifying short-term leases of passenger cars from fleets of five or more, plus a $2-per-day leased vehicle surcharge. | |
| Motor vehicles | see note | Sales of vehicles subject to the motor vehicle excise tax are exempt from GRT (Section 7-9-22); the excise tax is administered separately. |
Local sales taxes
Levied by county and municipal local option gross receipts tax increments (set by county commissions and municipal councils), collected by the state and distributed back. Since July 1, 2025, local rate changes take effect only in July (January only in special situations such as a natural disaster). Find the exact combined rate for an address with the official New Mexico lookup, then type the local part into the calculator above.
Sales tax holidays in 2026
| Holiday | Dates | What qualifies |
|---|---|---|
| Back-to-school gross receipts tax holiday | July 31, 2026 to August 2, 2026 | clothing and shoes under $100; computers and e-readers up to $1,000 and related peripherals up to $500; school supplies under $30 (book bags, backpacks, maps, globes under $100; calculators under $200) |
Statutory holiday (Section 7-9-95): from 12:01 a.m. on the last Friday in July to midnight the following Sunday; 2026 dates derived from that rule.
Worth knowing about New Mexico sales tax
- The state GRT rate went from 5.0% (January–June 2023) to 4.875% on July 1, 2023, and the July 2026–June 2027 rate schedule keeps it at 4.875%. source
- GRT also applies to most services, not just goods; there is no deduction for a business's own expenses. source
- Remote sellers and marketplace providers owe GRT once they have $100,000 of taxable New Mexico receipts in the previous calendar year. source
- If the business passes GRT on to the customer, it must be separately stated on the invoice. source
- Feminine hygiene products have been deductible from GRT since July 1, 2022 (Section 7-9-120). source
- Rate changes effective July 1, 2026 raised local GRT in locations including Los Ranchos de Albuquerque and much of Colfax County (Raton, Angel Fire, Cimarron and others). source
Property tax in New Mexico
County assessors set each property's current and correct value as of January 1, and the constitution limits the taxable share to 33 1/3% of it: a home valued at $300,000 is taxed on about $100,000, less any exemption, and the levies of the county, the municipality, the school district and other districts apply to that net figure. County treasurers send the bills. The Notice of Valuation arrives around April 1; an owner who disagrees has 30 days from the mailing to protest before a County Valuation Protests Board, which includes an appraiser from the state Property Tax Division.
The cap on residential value is what keeps long-held homes cheap. Under Section 7-36-21.2, the taxable value of a home cannot rise more than 3% over the prior year, or 6.1% over two years if that is higher, whatever the market does. The limit does not apply the first year a property is valued, nor to physical improvements, solar installations excepted. Owners must report changes in their property to the assessor by the last day of February.
At the Census ratio of 0.64%, a $350,000 house pays about $2,223 a year. Owners aged 65 or older or disabled, with modified gross income up to $42,900 under the 2025 order, can have the value of their single-family home frozen. Resident veterans can exempt up to $10,000 of taxable value, and a 100% service-connected disabled veteran's main home can be fully exempt. Los Alamos, Santa Fe and Doña Ana counties also offer a rebate, claimed on form PIT-RC with the state income tax return, for incomes up to $24,000.
Property tax on a home in New Mexico
Typical bill per year
$1,777
| Per month | $148 |
| Median effective rate in New Mexico | 0.64% |
| Median bill paid | $1,776 |
Census median ratio; your county, city and school district set the real levy.
| Census figure | New Mexico |
|---|---|
| Median home value (owner-occupied) | $279,900 |
| Median real estate taxes paid | $1,776 |
| with a mortgage | $2,153 |
| without a mortgage | $1,356 |
| Effective rate (tax ÷ value) | 0.64% |
| Rank by effective rate (1 = highest) | 35 of 51 |
| Rank by median bill | 41 of 51 |
How the taxable value is set
Property is valued at current and correct value as of January 1; the New Mexico Constitution caps the taxable share at 33 1/3% of value. Residential valuation increases are limited to the higher of 3% over the prior year or 6.1% over two years (Section 7-36-21.2), except for new construction and improvements. Who levies the tax: Local: county assessors value property and county treasurers bill and collect taxes for counties, municipalities, school districts and other districts; the state Taxation and Revenue Department's Property Tax Division oversees assessors and values certain state-assessed property.
Other property tax relief
- Valuation freeze for low-income owners 65+ or disabled. Single-family homes owned and occupied by people 65+ or disabled with modified gross income up to $42,900 (tax year 2025 order) have their value limited (Section 7-36-21.3). source
- Veteran exemption. Up to $10,000 of taxable value is exempt for New Mexico resident veterans or their unmarried surviving spouses; 100% service-connected disabled veterans' principal residence can be fully exempt. source
- Low-income property tax rebate (county option). Counties may adopt a rebate for residents with modified gross income up to $24,000, claimed on the state income tax return (PIT-RC); currently Los Alamos, Santa Fe and Doña Ana counties. source
Worth knowing about New Mexico property tax
- County assessors mail Notices of Valuation around April 1; protests are due 30 days after the notice is mailed and are heard by a County Valuation Protests Board that includes a state Property Tax Division appraiser. source
- Owners must report certain changes in their property's value to the assessor by the last day of February each year (Section 7-38-8). source
- The 3%-a-year residential cap does not apply in the first year a property is valued or to physical improvements (except solar installations). source
- Delinquent property taxes are collected by the state Property Tax Division, which offers installment agreements and ultimately auctions properties. source