Tax-Free Weekend in New Mexico
New Mexico has a sales tax holiday the first weekend of August. During this time, you can purchase the following tax-free:
- $30 of school supplies per item
- $100 or less of clothing and shoes per item
- $1,000 or less of computers per item
- $500 or less of computer equipment like monitors and printers per item
To shop tax-free online, you must complete the purchase during the tax-free weekend.
Taxation in New Mexico
In New Mexico, instead of a statewide sales tax, there is a gross receipts tax. Rates vary across the state from about 5% to over 9% when combined with local taxes.
- Some items are always tax-exempt like most groceries.
- Items like alcohol and prepared foods are taxed at higher rates.
New Mexico also has no personal income tax on Social Security benefits. Property taxes and mortgage interest are still deductible up certain limits. The state’s average effective property tax rate is 0.78%. The median annual property tax paid by homeowners in New Mexico is $1,403.
Details and Dates of the Tax-Free Event
New Mexico’s Tax-Free Weekend is approaching, offering back-to-school savings from Aug. 5-7. The tax holiday begins at 12:01 a.m. on Friday, August 4, 2023, and concludes on Sunday, August 6, 2023, at midnight.
- School supplies, like pencils, pens, notebooks, crayons, and backpacks are tax-free.
- Clothes and shoes less than $100 per item are tax-free.
- Desktops, laptops, tablets, or computers under $1,000 each are tax-free.
- Related computer hardware under $500 also qualifies.
Online ordering is also included in the tax-free weekend, providing an alternative to shopping in person. School supplies at $30 each or less will also qualify.
Other Tax-Free Events
From May 27 to 29, 2023, take advantage of the tax-free weekend on specific Energy Star® energy-efficient products and water conservation items. Another opportunity for tax-free shopping is from August 11 to 13, 2023, in preparation for the new school year.