Sales tax deduction in New Mexico
Varies
Is Sales Tax Deductible in New Mexico?
Short answer: Only instead of income tax: itemizers in New Mexico pick sales tax (4.875% state rate, about 7.68% with local taxes) or state income tax, whichever is bigger. Levies a gross receipts tax rather than a sales tax; vehicles instead pay a 4% motor vehicle excise tax (less any trade-in) at titling.
Use the IRS Sales Tax Deduction Calculator or your receipts, add sales tax paid on a car, boat, or home-building materials, and stay within the $40,400 SALT cap (Schedule A line 5a).
Records to keep: Keep your state return, W-2s and 1099s (1099-R, SSA-1099), and any state credit worksheets. Check your state revenue department's current-year instructions before you file.
Sales tax deduction in New Mexico
Varies
Individuals / Personal Taxes
Only instead of income tax: itemizers in New Mexico pick sales tax (4.875% state rate, about 7.68% with local taxes) or state income tax, whichever is bigger. Levies a gross receipts tax rather than a sales tax; vehicles instead pay a 4% motor vehicle excise tax (less any trade-in) at titling.
Business justification
Only instead of income tax: itemizers in New Mexico pick sales tax (4.875% state rate, about 7.68% with local taxes) or state income tax, whichever is bigger. Levies a gross receipts tax rather than a sales tax; vehicles instead pay a 4% motor vehicle excise tax (less any trade-in) at titling. Use the IRS Sales Tax Deduction Calculator or your receipts, add sales tax paid on a car, boat, or home-building materials, and stay within the $40,400 SALT cap (Schedule A line 5a).
Category
- Personal Tax Deductions