New Mexico's statewide Gross Receipts Tax (GRT) rate is 5.125%. Local rates can add to this. Please enter the total combined rate applicable to your location.
Total Tax: $0.00 Total Cost: $0.00
Understanding New Mexico Sales Tax (Gross Receipts Tax)
New Mexico does not have a traditional state sales tax. Instead, it imposes a Gross Receipts Tax (GRT). This tax is levied on the total amount of gross receipts of most businesses. Unlike a sales tax, which is typically collected from the final consumer, the GRT is technically paid by the seller (the business) on their receipts. However, most businesses pass this cost on to their customers, making it function similarly to a sales tax in practice.
Key Features of New Mexico's GRT:
Statewide Rate: The base state GRT rate is 5.125%.
Local Taxes: Cities, counties, and special districts in New Mexico can impose their own GRT rates. These local rates are added to the state rate, leading to significantly higher combined rates in many areas. For example, a purchase in Albuquerque might be subject to the state rate plus city and potentially other local levies.
Taxability: While most tangible goods and services are subject to GRT, there are specific exemptions and deductions. It's crucial for businesses to understand what is taxable in their specific location and industry.
Deductions and Exemptions: Certain business activities, such as sales for resale, sales to the U.S. government, or specific services, may be exempt from GRT. Businesses often have mechanisms to deduct receipts from certain sales if they qualify.
Filing: Businesses are required to report their gross receipts and remit the taxes collected to the New Mexico Taxation and Revenue Department, typically on a monthly, quarterly, or annual basis.
How the Calculator Works:
This calculator simplifies the process of estimating the GRT you might pay. It takes your total purchase amount and applies the combined state and local Gross Receipts Tax rate you enter. The calculation is straightforward:
For example, if you purchase an item for $100.00 and the total combined GRT rate in your area is 8.5% (including state and local taxes), the calculator would compute:
Disclaimer: This calculator provides an estimate for informational purposes only. Actual tax liabilities may vary based on specific local ordinances, exemptions, and the nature of the transaction. Always consult official tax resources or a tax professional for precise calculations and compliance.
function calculateSalesTax() {
var purchaseAmountInput = document.getElementById("purchaseAmount");
var grossReceiptsTaxRateInput = document.getElementById("grossReceiptsTaxRate");
var resultDiv = document.getElementById("result");
var purchaseAmount = parseFloat(purchaseAmountInput.value);
var grossReceiptsTaxRate = parseFloat(grossReceiptsTaxRateInput.value);
// Clear previous result if inputs are invalid or empty
if (isNaN(purchaseAmount) || isNaN(grossReceiptsTaxRate) || purchaseAmount <= 0 || grossReceiptsTaxRate < 0) {
resultDiv.innerHTML = "Total Tax: $0.00Total Cost: $0.00";
return;
}
var taxAmount = purchaseAmount * (grossReceiptsTaxRate / 100);
var totalCost = purchaseAmount + taxAmount;
// Format to two decimal places for currency
var formattedTaxAmount = taxAmount.toFixed(2);
var formattedTotalCost = totalCost.toFixed(2);
resultDiv.innerHTML = "Total Tax: $" + formattedTaxAmount + "Total Cost: $" + formattedTotalCost + "";
}