How Do I Pay My New Mexico Gross Receipts Tax?

How does a gross receipts tax work?

Gross receipts taxes are applied to receipts from a firm’s total sales.

Unlike a corporate income tax, these taxes apply to the firm’s sales without deductions for a firm’s costs.

They are not adjusted for a business’ profit levels or expenses and apply to all transactions a business makes..

Where do I send my New Mexico State tax payment?

No, returns are mailed to: New Mexico Tax and Revenue Department P.O. Box 25122 Santa Fe, NM 87504-5122 Payments, including estimated payments, should be mailed to: New Mexico Taxation … Can I make payments by phone or electronically? Yes, for phone payments call 1-866-285-2996.

Are groceries taxed in New Mexico?

New Mexico doesn’t collect sales tax on purchases of most groceries. In most states, necessities such as groceries, clothes, and drugs are exempted from the sales tax or charged at a lower sales tax rate.

Is New Mexico tax free?

New Mexico’s tax free weekend takes place the first weekend of August. That means, in 2020, it takes place at 12:01 a.m on Aug. 7 and ends Aug. 9 at midnight.

What is the sales tax in Las Cruces NM?

8.32%The minimum combined 2020 sales tax rate for Las Cruces, New Mexico is 8.32%. This is the total of state, county and city sales tax rates. The New Mexico sales tax rate is currently 5.13%. The County sales tax rate is 0%.

What is the gross receipts tax for New Mexico?

The gross receipts tax rate varies throughout the state from 5.125% to 8.6875% depending on the location of the business. It varies because the total rate combines rates imposed by the state, counties, and, if applicable, municipalities where the businesses are located.

Who is exempt from New Mexico Gross Receipts Tax?

If all of a business’s receipts are exempt, the business doesn’t have to register with the state for GRT purposes. Common exemptions are receipts of a 501(c)(3) nonprofit and governmental entities, receipts from isolated or occasional sales, employee wages, interest and dividends and insurance company receipts.

What is the New Mexico tax rate?

5.125%The New Mexico (NM) state sales tax rate is currently 5.125%. Depending on local municipalities, the total tax rate can be as high as 9.0625%.

What is the difference between sales tax and gross receipts tax?

If you charge your customers sales tax, your income is not affected by passing the amount to the state. The gross receipts tax, on the other hand, is based on your total revenue and directly impacts the profits you earn.