Which state has the lower sales tax nexus threshold, Colorado or New Mexico?

Both Colorado and New Mexico publish the same economic nexus dollar threshold of $100,000, so a remote seller would reach each state's published threshold at the same level of in-state sales. These are the thresholds published by each state's tax authority as of 2026-05-16; confirm against the official source before registering.

Do both Colorado and New Mexico have marketplace facilitator laws?

Yes. Both Colorado and New Mexico have marketplace facilitator laws, so marketplaces such as Amazon, Etsy, and eBay collect and remit sales tax on the sales they facilitate in both states. Direct-to-consumer sales you make outside a marketplace remain your own responsibility once you cross each state's threshold. Verified 2026-05-16.

Which has the lower sales tax rate, Colorado or New Mexico?

New Mexico has the lower combined state and local sales tax rate at 7.66%, compared with 7.89% in Colorado. These are the statewide base rate plus the average local rate; the exact rate depends on the customer's delivery address. As of 2026-05-16.

Do I need to register for sales tax in both Colorado and New Mexico?

It depends on where you cross each state's economic nexus threshold (or have physical presence there). Colorado's published threshold is $100,000, and New Mexico's is $100,000. You generally register in a state only once you cross its threshold, so you may have an obligation in one, both, or neither. Run the nexus calculator with your actual sales and confirm with each state's official source. Thresholds as of 2026-05-16.

When did economic nexus take effect in Colorado and New Mexico?

Colorado's economic nexus rule took effect on 2018-12-01, and New Mexico's took effect on 2019-07-01. Both stem from the 2018 South Dakota v. Wayfair Supreme Court decision, which let states require remote sellers to collect once an economic threshold is met.

Colorado vs New Mexico Sales Tax Nexus — Comparison 2026

Updated 2026-05-16

Compare economic nexus thresholds, state and local rates, and filing rules in Colorado and New Mexico.

Metric	Colorado	New Mexico
Economic nexus threshold	$100,000	$100,000
Transaction threshold	None	None
State rate	2.90%	4.88%
Avg. local rate	4.99%	2.79%
Combined state + local	7.89%	7.66%
Marketplace facilitator	Yes	Yes
Effective since	2018-12-01	2019-07-01

Which state is easier for sellers?

For low-revenue sellers: nexus triggers first in both states because of its threshold. If you cross that first, you register there first.

On rate: New Mexico is friendlier for customers with a combined state + local rate of 7.66% vs 7.89%.

Neither state has a transaction-count trigger — only the dollar threshold matters.

Colorado — nexus note

Economic nexus in Colorado triggers at $100,000 in gross sales delivered into Colorado in the current or prior calendar year. No transaction count threshold.

New Mexico — nexus note

Economic nexus in New Mexico triggers at $100,000 in gross sales delivered into New Mexico in the current or prior calendar year. No transaction count threshold.

What to do next

Use the nexus calculator to check exactly which of Colorado and New Mexico you've already triggered. Then read each state's full guide:

Colorado overview →New Mexico overview →

Frequently asked questions

Which state has the lower sales tax nexus threshold, Colorado or New Mexico?: Both Colorado and New Mexico publish the same economic nexus dollar threshold of $100,000, so a remote seller would reach each state's published threshold at the same level of in-state sales. These are the thresholds published by each state's tax authority as of 2026-05-16; confirm against the official source before registering.
Do both Colorado and New Mexico have marketplace facilitator laws?: Yes. Both Colorado and New Mexico have marketplace facilitator laws, so marketplaces such as Amazon, Etsy, and eBay collect and remit sales tax on the sales they facilitate in both states. Direct-to-consumer sales you make outside a marketplace remain your own responsibility once you cross each state's threshold. Verified 2026-05-16.
Which has the lower sales tax rate, Colorado or New Mexico?: New Mexico has the lower combined state and local sales tax rate at 7.66%, compared with 7.89% in Colorado. These are the statewide base rate plus the average local rate; the exact rate depends on the customer's delivery address. As of 2026-05-16.
Do I need to register for sales tax in both Colorado and New Mexico?: It depends on where you cross each state's economic nexus threshold (or have physical presence there). Colorado's published threshold is $100,000, and New Mexico's is $100,000. You generally register in a state only once you cross its threshold, so you may have an obligation in one, both, or neither. Run the nexus calculator with your actual sales and confirm with each state's official source. Thresholds as of 2026-05-16.
When did economic nexus take effect in Colorado and New Mexico?: Colorado's economic nexus rule took effect on 2018-12-01, and New Mexico's took effect on 2019-07-01. Both stem from the 2018 South Dakota v. Wayfair Supreme Court decision, which let states require remote sellers to collect once an economic threshold is met.

Sources

date_retrieved: Colorado 2026-05-16 · New Mexico 2026-04-27

Colorado: https://tax.colorado.gov/
Colorado: https://tax.colorado.gov/remote-sales-tax
Colorado: https://www.salestaxinstitute.com/resources/economic-nexus-state-guide
Colorado: https://taxfoundation.org/data/all/state/sales-tax-rates/
New Mexico: https://www.tax.newmexico.gov/
New Mexico: https://www.tax.newmexico.gov/businesses/tax-tables/
New Mexico: https://www.salestaxinstitute.com/resources/economic-nexus-state-guide
New Mexico: https://taxfoundation.org/data/all/state/sales-tax-rates/