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How New Mexico Handles Tax on Shipping

Learn how New Mexico handles sales tax on shipping charges

Updated this week

New Mexico doesn’t technically have a sales tax — it has a Gross Receipts Tax (GRT), which usually applies to shipping.


General Rule

Taxable: Delivery charges are taxable if they’re connected to the sale of taxable goods.

Exempt: Very few exemptions apply — most shipping charges are taxable.


Handling Charges

Handling and combined “shipping & handling” charges are always taxable.


Best Practices for Compliance

  • Expect shipping to be taxable in most cases.

  • Separate charges on invoices, but know they are usually still taxable.


Example

$200 taxable items with $20 delivery → $20 is taxable under GRT.


Stay Compliant with Kintsugi

New Mexico’s GRT applies broadly. Kintsugi Intelligence ensures shipping and handling charges are applied correctly, without confusion.


⚖️ Important Notice: Sales tax regulations are subject to change without prior notice. For guidance tailored to your business, please consult a qualified tax advisor.

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