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2024 Guide to Sales Tax in Albuquerque, New Mexico

State Sales Tax Rate
4.875%
Bernalillo County Sales Tax Rate
0%
Special Sales Tax Rate
0%
Albuquerque Sales Tax Rate
Variable (up to 2.75%)

If you're operating a business in Albuquerque, New Mexico, it's essential to understand the local sales tax regulations to ensure compliance and smooth operation. This guide provides a comprehensive overview of the sales tax in Albuquerque, New Mexico.

We will discuss the various sales tax rates at the state, county, and city levels, how to calculate sales tax in Albuquerque, and the requirements for businesses to collect sales tax. Additionally, we provide sales tax rates for the top 10 most populated zip codes in Albuquerque and tips to ensure compliance with sales tax regulations.

What is the Sales Tax in Albuquerque?

The total sales tax rate in Albuquerque consists of the New Mexico state tax rate and additional city tax rates where applicable.

Breakdown of Sales Tax in Albuquerque

  • State Sales Tax: 4.875%
  • County Sales Tax: 0.00%
  • City Sales Tax: Variable (up to 2.75%)
  • Special Sales Tax: 0.00%

What is Bernalillo County Sales Tax?

In Albuquerque, part of Bernalillo County, there is no additional county sales tax, so the county tax rate is 0.000%.

Tax Rates in Albuquerque, New Mexico

Here are the sales tax rates for the top 10 most populated zip codes in Albuquerque:

Zip Code State Sales Tax County Sales Tax City Sales Tax Special Sales Tax
87105 4.875% 0.000% 2.750% 0.000%
87108 4.875% 0.000% 1.187% 0.000%
87109 4.875% 0.000% 2.750% 0.000%
87110 4.875% 0.000% 2.750% 0.000%
87111 4.875% 0.000% 2.750% 0.000%
87112 4.875% 0.000% 2.750% 0.000%
87114 4.875% 0.000% 2.750% 0.000%
87120 4.875% 0.000% 2.750% 0.000%
87121 4.875% 0.000% 2.750% 0.000%
87123 4.875% 0.000% 2.750% 0.000%

Other Tax Rates for Albuquerque

Here are some other applicable tax rates for businesses in Albuquerque:

Type of Sales Tax Rate
Non-Nexus Sellers – State Use Tax 4.875%
Non-Nexus Sellers – County Use Tax 0.000%
Non-Nexus Sellers – City Use Tax Variable
Non-Nexus Sellers – Special Use Tax 0.000%
Out-of-State Sellers – State Use Tax 4.875%
Out-of-State Sellers – County Use Tax 0.000%
Out-of-State Sellers – City Use Tax Variable
Out-of-State Sellers – Special Use Tax 0.000%
Marketplace Facilitators – State Sales Tax 4.875%
Marketplace Facilitators – County Sales Tax 0.000%
Marketplace Facilitators – City Sales Tax Variable
Marketplace Facilitators – Special Sales Tax 0.000%

What Items are Taxable in Albuquerque?

In New Mexico, certain items are taxable while others are exempt. Common taxable items include:

Item Description TIC Number
Apparel Clothing and footwear 10030
Electronics Computers and accessories 20030
Furniture Home furnishings 30030

What Items are Exempt from Taxes in Albuquerque?

Some items are exempt from sales tax in New Mexico, typically for essential goods or to encourage certain purchases:

Item Description TIC Number
Prescription Drugs Medications 40030
Groceries Unprepared food items 50030
Medical Equipment Durable medical equipment 60030

Who Needs to Collect Sales Tax in Albuquerque?

Businesses need to collect sales tax in Albuquerque if they have either physical or economic nexus in New Mexico.

Physical Nexus

You have a physical presence in New Mexico if you:

  • Own or lease property in New Mexico
  • Have employees in New Mexico
  • Maintain inventory in New Mexico

Economic Nexus

You have economic nexus if your sales into New Mexico exceed $100,000 or 200 transactions in the current or previous calendar year.

How to Get a Sales Tax Permit in Albuquerque?

If you meet the nexus requirements, you must register for a sales tax permit in New Mexico. Here’s how:

  1. Visit the New Mexico Taxation and Revenue Department’s website.
  2. Complete the application for a sales tax permit.
  3. Submit the application and await approval.

How Do You Charge the Right Amount for Sales Tax in Albuquerque?

Ensuring you charge the correct sales tax in Albuquerque involves:

  • Manually checking and updating rates: Regularly check the New Mexico Taxation and Revenue Department’s website for updates.
  • Using sales tax software: Implement software like TaxCloud to automate rate updates and compliance.

How Do You File and Remit Sales Tax in Albuquerque?

Sales tax returns are filed with the New Mexico Taxation and Revenue Department. Here’s how:

  1. Collect sales tax from customers.
  2. File your sales tax return online.
  3. Remit the collected taxes to the state.

Conclusion

Understanding and complying with sales tax regulations in Albuquerque is essential for any business operating in New Mexico. Use this guide to navigate the complexities of sales tax in Albuquerque and ensure your business remains compliant.

Sales Tax Guides by State

Our sales tax guides provide an overview of sales tax rates, nexus thresholds, taxable and nontaxable items, along with other valuable tax knowledge for every U.S. state.