Who is Exempt from Gross Receipts Tax in New Mexico?

A tax called the Gross Receipts Tax (GRT) is levied against companies doing business in New Mexico. By dividing the taxable gross receipts by the appropriate tax rate, it is determined. Although the firm is responsible for paying the tax, increased prices are ultimately passed on to the customer. However, GRT is not a requirement for all companies. We shall look at who in New Mexico is exempt from GRT in this article. Entities That Are Exempt In New Mexico, several entities are free from GRT. These consist of the national and state governments, academic institutions, and charitable organizations. Additionally, if certain conditions are met, some entities might be excluded from GRT. For instance, GRT is not applicable to companies with gross receipts of less than $500,000. Food and medication

In New Mexico, the sale of food and medication is likewise free from GRT. Food goods like groceries, as well as over-the-counter and prescription drugs, fall under this category. Sales made outside of the state

Businesses are also exempt from GRT if they don’t conduct business in New Mexico. This is so that out-of-state sales are not subject to GRT, which is a tax on companies doing business within the state. Sales tax applies. New Mexico levies a sales tax on specific goods and services in addition to the GRT. The location of the sale affects the sales tax rate. Use the online tax calculator provided by the New Mexico Taxation and Revenue Department to determine the applicable sales tax. Rate of the Santa Fe Sales Tax In Santa Fe, New Mexico, the sales tax rate is 8.4375%. This includes a 5.125% state rate, a 1.125% county rate, and a 2.1875% city rate. State income taxes apply. Yes, there is a state income tax in New Mexico. Depending on an individual’s salary, the state income tax rate might range from 1.7% to 4.9%. Tax Rate in El Paso

In summary, some businesses and transactions, such as those involving the government, educational institutions, non-profit organizations, the selling of food and medicine, and out-of-state transactions, are exempt from the gross receipts tax in New Mexico. Additionally, New Mexico levies a state income tax and sales tax, with different rates based on geography and income. To properly comply with state tax rules, it is crucial for both enterprises and people to be aware of these taxes and exemptions.