New Mexico does not impose a sales or use tax; instead, New Mexico imposes a gross receipts tax on people engaged in business in New Mexico. The gross receipts tax rate varies throughout the state from 5.125 to 8.8675 percent depending on the location of the business.
New Mexico also imposes a compensating (use) tax on tangible property, services, licenses, or franchises to which tax has not been paid to New Mexico. Property acquired outside of the state and brought into New Mexico for us is subject to the compensating tax. However, New Mexico does allow a credit against tax paid on any property purchased outside New Mexico on which gross receipts, sales, or use tax has already been paid to another state.