No, there is no tax-free weekend in New Mexico. New Mexico does not take part in the program where specific things can be bought tax-free for a weekend in various states. There are still ways to reduce state taxes, though. For instance, certain commodities, like food and prescription medications, are free from gross receipts tax.
In New Mexico, the state income tax rate for 2021 is 4.9%. Everyone pays the same percentage of their income in state income tax because this is a flat tax rate. It is crucial to remember that neither Social Security benefits nor military retirement income are subject to tax in New Mexico.
In Albuquerque, New Mexico, the gross receipts tax rate is 7.875%. The majority of goods and services offered for sale in the city, including as food, clothing, and electronics, are subject to this tax. It is crucial to keep in mind that this tax is in addition to the state’s 5.125% sales tax, making Albuquerque’s overall sales tax rate 13%.
Digital goods are taxed in New Mexico, yes. This covers things like software, music, and e-books. There are a few exceptions to this rule, though. For instance, educational resources and online courses are free from the gross receipts tax.
No, New Mexico does not have a state-based origin-based sales tax. This indicates that the location of the buyer, not the vendor, determines the applicable sales tax. For instance, if you order something online from an Albuquerque merchant and have it transported to Santa Fe, you’ll pay Santa Fe’s sales tax rate rather than Albuquerque’s.
In conclusion, there are still ways to cut taxes in New Mexico even when there isn’t a tax-free weekend. You can save money by being aware of the state income tax rate, the gross receipts tax in your city, and the tax-exempt items. It’s also crucial to keep in mind that New Mexico does not have an origin-based sales tax and that digital goods are taxed in the state.