Does Amazon Charge Sales Tax in New Mexico?

Does Amazon charge sales tax in New Mexico?
ALBUQUERQUE – Online retail giant Amazon will soon begin collecting taxes on purchases being sent to New Mexico addresses. The New Mexico Taxation and Revenue Department confirmed Monday that the new sales tax will begin in April.
Read more on www.lcsun-news.com

Yes, Amazon in New Mexico does levy sales tax. All merchants in the state of New Mexico are required to collect sales tax from their clients, including those that operate online. New Mexico’s state sales tax is 5.125%, and some towns may tack on their own levies as well. In New Mexico, Amazon is obligated to gather and send sales tax on behalf of its clients.

In addition, New Mexico levies a usage tax on goods brought into the state from outside the country. You must still pay use tax on any purchases you make from Amazon or any other out-of-state merchant that does not charge sales tax in New Mexico. In New Mexico, the use tax rate is also 5.125%.

It is significant to remember that not all states impose a sales tax, but New Mexico is one of them. Although New Mexico’s state sales tax is lower than that of some other states, it can nevertheless mount up over time. Sales tax should always be taken into account while making purchases, especially larger ones.

The way that Amazon handles sales taxes in different states differs each state. For instance, Amazon also collects sales tax on behalf of its clients in Texas. Texas has a 6.25% state sales tax, although individual cities may levy more. To find out the sales tax laws in your state, it is preferable to contact Amazon directly or your state’s tax authorities.

In conclusion, you will be required to pay sales tax on your Amazon purchases if you live in New Mexico and make them. You must also pay use tax if you buy something from an out-of-state merchant who does not charge sales tax in New Mexico. It is crucial to understand your state’s tax laws and to take them into account when making purchases.

FAQ
How do I pay sales tax in New Mexico?

In New Mexico, the vendor typically collects sales tax at the point of sale. You must register for a New Mexico CRS identification number and collect and return the proper sales tax to the state if you own a business and make sales in New Mexico. When making purchases in New Mexico as an individual, the sales tax will be calculated into your final bill.