State Sales Tax Rates

State Sales Tax Rates New Mexico State Sales Tax 2014

New Mexico Sales Tax 2014
New Mexico State Sales Tax for 2014 Maximum Municipal Sales Tax

5.13%

3.44%

What is the New Mexico Sales Tax?

The New Mexico state sales tax is 5.125%, with a maximum possible sales tax (including local and municipal sales taxes) of 8.5625%.

Local governments in New Mexico are allowed to add a local sales tax of up to 3.4375 percent on top of the NM state sales tax for all qualifying sales in their jurisdiction - so the actual sales tax paid on any purchase in New Mexico can be up to 8.5625% depending on location.

New Mexico has a gross receipts tax in place of a sales tax, which is applicable to all goods or services purchased within the state (with the exemption of groceries). Retailers are allowed to pass this tax liability on to the end consumer, and many businesses simply add the tax charge to the bill as if it were a standard sales tax.

What sales are exempt from the New Mexico Sales Tax?

New Mexico Sales and Use Tax Rates

Many states set special sales tax rates for certain types of goods like groceries or clothes, and may completely exempt certain transactions from state and local sales taxes. New Mexico completely exempts unprepared food and groceries from the New Mexico state sales tax.

New Mexico does not have special sales tax rates for certain types of purchase, a common practice in many states for goods such as food and clothing.While many other states also collect a special (and often higher) sales tax on prepared and restaraunt food, New Mexico does not have a specific restaraunt sales tax.

Generally, the New Mexico sales tax is collected only from the end consumer, or the end user of the product. Customers buying products in bulk, as a business-to-business transaction, or buying with the intent to resell do not have to pay the New Mexico sales tax if they provide the seller with a New Mexico Sales Tax Exemption Certificate at the time of purchase. Most states will accept the Uniform Sales and Use Tax Certificate for this purpose, which is available from the Multistate Tax Commission here.

Internet Sales Tax, or tax on purchases made over the internet, is currently a gray area in many states' tax codes. While most states can collect sales tax on internet purchases made within the state (the vendor and consumer are both located in New Mexico), taxation of interstate internet transactions is much more complicated.

Currently New York, Rhode Island, North Carolina, Colorado, and Illinois have some form of online sales tax that also handles interstate transactions. For details on how New Mexico handles taxation of online sales, read more about online sales taxes in the United States.

Resources:

[1] Table of state sales taxes on Wikipedia
http://en.wikipedia.org/wiki/Sales_taxes_in_the_United_States#By_jurisdiction

[2] New Mexico sales tax information on Tax-Rates.org
http://www.tax-rates.org/New Mexico/sales-tax

[3] Table of state sales, use, and excise taxes by The Tax Foundation
http://www.taxfoundation.org/taxdata/show/245.html

[4] State level taxation resources on IRS.gov
http://www.irs.gov/businesses/small/article/0,,id=99021,00.html