Sales Tax on Dental Work in NM: What You Need to Know

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Is there sales tax on dental work in NM?
As a provider of personal services, a dentist’s services are exempt from sales tax. However, if your practice sells to patients items such as mouthwash, whiteners and toothbrushes, sales tax must be collected on these items. In addition, dentists can be consumers of tangible personal property and services as well.
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You might be wondering if you’ll have to pay sales tax if you live in New Mexico and want to get dental procedures done. The operation you are having done in the dental office will determine the answer. In general, routine dental procedures like cleanings and exams are exempt from sales tax. Other services, such fillings, crowns, and implants, however, can be subject to taxation.

On their website, the New Mexico Department of Taxation and Revenue lists the taxable and non-taxable services. Any service that is deemed “cosmetic” or “elective” in accordance with company policies is liable to sales tax. This covers treatments including veneers, orthodontics, and tooth whitening. However, “therapeutic” or “restorative” services are typically exempt from taxes. This covers operations like extractions, root canals, and periodontal therapy.

It is important to keep in mind that if you have dental insurance, your provider might pay all or part of the cost of your dental work. Sales tax on the portion of the invoice that is covered by your insurance might not be required in this situation. However, you will probably be liable for paying any applicable sales tax if you are paying out-of-pocket for dental services.

In New Mexico, do out-of-state sales taxes apply?

You might be unsure if you’ll have to pay sales tax if you buy something from a store that isn’t in New Mexico. The retailer’s relationship with the state will determine how the response applies. A nexus is a physical location in the state, like a storefront or a warehouse. A retailer is required to collect and send sales tax on transactions made by New Mexico residents if they have nexus in the state. The retailer is not required to collect or remit sales tax, nevertheless, if they do not have nexus in New Mexico. Which States Don’t Charge Sales Tax?

There are a few states that don’t charge sales tax if you want to buy something without paying it. These states consist of: Alaska, Delaware, Montana, New Hampshire, and

Oregon

Although there is no state-level sales tax in these states, there may still be local sales taxes levied by the cities or counties. Which States Don’t Charge an Income Tax?

There are now nine states that are suitable if you’re seeking for one without an income tax. These states include:

– New Hampshire (interest and dividends only),

Tennessee (interest and dividends only),

Alaska,

Florida,

Nevada,

South Dakota,

Texas,

Wyoming.

In light of this, which state has the lowest sales tax? The answer is a little trickier if you’re seeking for the state with the lowest sales tax. State-level sales tax rates can vary significantly, as can county and city-level rates. Alaska, with a combined state and local sales tax rate of 1.76%, has the lowest rate as of 2021, though. Hawaii, Wyoming, and Wisconsin are other states with low sales tax rates (4.44%, 5.32%, and 5.43%, respectively).

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