The state of New Mexico is renowned for its diverse cultural history, breathtaking natural surroundings, and a booming economy that draws tourists and companies from all over the world. Like the majority of US states, New Mexico levies a sales tax on the acquisition of products and services; the rate varies by county and kind of good or service. We will address some frequently asked issues about the applicable New Mexico sales tax in this article.
The basic rate for the state of New Mexico’s sales tax is currently 5.125%. The county and city might have different sales tax rates, though. As an illustration, the sales tax rate in Bernalillo County is 6.75%, which comprises the state rate of 5.125%, the county rate of 1.125%, and the transit charge of 0.5%. Does New Mexico impose a sales tax on food?
While groceries are not subject to the state sales tax in New Mexico, the local sales tax may still be charged. This implies that you won’t be required to pay the state’s 5.125% sales tax if you purchase food items like bread, milk, or vegetables, but you might be required to pay the local sales tax if your county or city levies one. What is the gross receipts tax rate in New Mexico?
A tax on a business’s gross receipts is known as the gross receipts tax (GRT) in New Mexico. Similar to a sales tax, but paid by the company rather than the customer. The GRT rate varies based on the company’s location and the kinds of goods and services it provides. For instance, the GRT rate in Albuquerque is 7.875%, which comprises the city rate of 1.625%, the county rate of 1.125%, and the state rate of 5.125%.
Rio Rancho, a city in Sandoval County, New Mexico, has a 7.3125% sales tax rate. This comprises the 5.125% state rate, the 1.125% county rate, and the 1.0625% local rate.
In conclusion, New Mexico’s current sales tax rate is 5.125%, while the actual rate will depend on the county and city. Additionally, the gross receipts tax rate varies depending on the business location and the kind of goods or services provided, and groceries are excluded from the state sales tax. To avoid any unpleasant surprises at the register, it’s crucial to research the applicable sales tax rate before making any purchases in New Mexico.