The state of New Mexico is situated in the southwest part of the country. The state has a distinctive culture, a varied geography, and a lengthy history. But how does New Mexico fare in terms of taxes?
New Mexico is not regarded as having a high tax burden. New Mexicans spend an average of 9.5% of their income in state and local taxes, placing the state and local tax burden of the state at 32nd in the nation, according to the Tax Foundation. This is a little bit higher than the 9.1% national average.
The absence of a sales tax on food or healthcare services in New Mexico is one factor in the state’s low tax burden. However, the majority of products and services are subject to the state’s gross receipts tax (GRT). Local variations in the GRT rate result in different rates in different cities and counties.
Many Americans choose New Mexico as their retirement home. The state is a desirable location to spend your golden years because of its pleasant climate, breathtaking scenery, and distinctive culture. New Mexico is a tax-friendly state for retirees since it does not tax Social Security payments or retirement income.
For people who like outdoor activities, cultural events, and a relaxed way of life, New Mexico is a terrific place to call home. With everything from hiking in the desert to skiing in the Alps, the state’s varied geography has something to offer everyone. A number of prominent museums, galleries, and cultural events may be found in New Mexico. But because of its reliance on the oil and gas sector, the state’s economy is susceptible to downturns.
A tax known as the Gross Receipts Tax (GRT) is levied on the majority of products and services in Albuquerque. Albuquerque’s GRT rate is now 7.875%, which comprises the state’s GRT of 5.125% and the city’s GRT of 2.75%. Food and medical care are two examples of commodities and services that are exempt from the GRT.
You need to know the total cost of the item you are buying as well as the local sales tax rate in order to calculate the sales tax. For instance, if the amount you are spending totals $100 and your local sales tax is 7%, you would multiply $100 by 0.07 to get $7. With sales tax, the item would cost $107 in total.
In conclusion, New Mexico is a tax-friendly state for seniors and isn’t regarded as having high taxes. Those who appreciate cultural experiences and outdoor activities will find the state’s distinctive culture and diversified terrain to be an alluring place to call home. But because of its reliance on the oil and gas sector, the state’s economy is susceptible to downturns. The GRT rate in Albuquerque is 7.875%, and in order to calculate sales tax, you must know both the item’s total cost and the sales tax rate in your region.
Groceries, prescription pharmaceuticals, medical equipment, and some agricultural products are some of the things that are not subject to sales tax in New Mexico. In addition, a certain services, including legal and medical services, are free from sales tax. It is crucial to remember that exemptions can change based on the individual good or service being taxed.
Yes, shipping taxes are levied in New Mexico. There are a few exceptions to this rule, though. For instance, the shipping fee might not be taxed if it is specified separately on the invoice. Additionally, the delivery fee might not be taxable if the vendor uses a common carrier (like UPS or FedEx) to deliver the item. It is always better to seek particular advice on tax regulations pertaining to shipping in the state from a tax expert or the New Mexico Taxation and Revenue Department.