United Mexican States Estados Unidos Mexicanos (Spanish) | |
|---|---|
| Anthem: Himno Nacional Mexicano (English: Mexican National Anthem) | |
  | |
| Capital and largest city | Mexico City 19°26′N 99°8′W / 19.433°N 99.133°W |
| Official languages | Spanish (de facto) None (de jure) |
| Co-official languages | |
| Ethnic groups | See below |
| Religion (2020) |
|
| Demonym(s) | Mexican |
| Government | Federal presidential republic |
| Claudia Sheinbaum | |
| Gerardo Fernández Noroña | |
| Sergio Gutiérrez Luna | |
| Norma Lucía Piña Hernández | |
| Legislature | Congress |
| Senate | |
| Chamber of Deputies | |
| Independence from Spain | |
| 16 September 1810 | |
| 27 September 1821 | |
| 28 December 1836 | |
| 4 October 1824 | |
| 5 February 1857 | |
| 5 February 1917 | |
| Area | |
Total | 1,972,550 km2 (761,610 sq mi) (13th) |
Water (%) | 1.58 (as of 2015) |
| Population | |
2025 estimate |  131,946,900 (10th) |
2020 census | 126,014,024 |
Density | 61/km2 (158.0/sq mi) (142nd) |
| GDP (PPP) | 2025 estimate |
Total |  $3.408 trillion (12th) |
Per capita | $25,557 (70th) |
| GDP (nominal) | 2025 estimate |
Total |  $1.818 trillion (12th) |
Per capita | $13,630 (63rd) |
| Gini (2022) |  40.2medium inequality |
| HDI (2023) | 0.789 high (81st) |
| Currency | Mexican peso (MXN) |
| Time zone | UTC−8 to −5 (See Time in Mexico) |
Summer (DST) | UTC−7 to −5 (varies) |
| Date format | dd/mm/yyyy |
| Calling code | +52 |
| ISO 3166 code | MX |
| Internet TLD | .mx |
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RATE OF SALES TAX:
5.125%
LOCAL & COUNTY MAXIMUM RATES:
4.313%
The first step in sales tax compliance is determining if the items or services your firm offers are taxable in New Mexico.
Physical property, such as furniture, household appliances, and automobiles, is subject to sales tax in New Mexico.
Prescription drugs, food, and fuel are all free from sales tax.
New Mexico is unusual in that it mandates a gross receipts tax to be paid on all services.
A digital item or service is anything that is supplied electronically, such as a music downloaded from iTunes or a movie bought from Amazon.
Businesses in New Mexico are required to collect sales tax on the sale of digital products or services.
If you have concluded that you must charge sales tax on part or all of the products and services that your company sells, the next step is to apply for a seller’s licence.
This enables your company to collect sales tax on behalf of the municipal and state governments.
You will need the following information to register:
When acquiring items for resale, your firm does not have to pay sales tax if you obtain a resale certificate, also known as a reseller’s permit.
After obtaining your seller’s licence and starting your company, you’ll need to figure out how much sales tax to charge various consumers. It is critical for company owners to collect the right rate of sales tax to avoid penalties and the danger of expensive audits.
When computing sales tax, consider the following types of transactions:
Store Sales Shipping Within-State Sales Outside-State Sales
For conventional company owners who sell products or services on-site, calculating sales tax is simple: all sales are taxed at the rate determined by the store’s location.
Here’s an illustration of how this situation may look:
In Dora, New Mexico, Mary owns and operates a bookshop. Because books are taxed in the state of New Mexico, Mary charges a 7.375% sales tax on all purchases. This includes the 5.125% state sales tax and the 2.250% local sales tax.
New Mexico has what is known as a destination-based sales tax regime. This implies that long-distance transactions inside New Mexico are taxed based on the buyer’s address. This regulation applies to sales taxes levied by the state, county, and city.
Consider the following scenario:
Steve operates his own eBay electronics company from his home in Albuquerque, New Mexico. A buyer from Santa Fe, New Mexico discovers Steve’s eBay website and buys a $350 set of headphones. Steve uses the Santa Fe sales tax rate of 8.3125% when computing the sales tax for this item. This takes the total cost of the item to $375.81, including sales tax of $25.81.
Businesses in New Mexico must only pay sales tax on out-of-state sales if they have nexus in other states.
Nexus indicates that the company has a physical presence in another state.
Common nexus types include:
You’re ready to submit your sales tax return now that you’ve obtained your New Mexico seller’s permit and understand how to charge the correct amount of sales tax to all of your customers. You avoid penalties and fines, be sure to meet all filing dates.
Businesses in New Mexico are required to file sales tax forms and make sales tax payments online.
The frequency with which you must submit is determined by the total amount of sales tax collected by your firm.
The deadline for all New Mexico sales tax returns is the 25th of the month, unless it is a weekend or federal holiday, in which case the deadline is postponed to the following working day. The following are the filing deadlines for this year:
New Mexico has a late filing penalty of 2% every month or partial month, with a maximum penalty of 20% of the tax recorded on the tax return until the tax is submitted.
New Mexico additionally imposes a late payment penalty of 2% per month up to 20% of the unpaid tax if the tax has been submitted at the very least.
The state levies any unpaid tax or penalty at a compounding interest rate of 4% per year or 0.33% every month or partial month.
