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Texas vs New Mexico Sales Tax: 8.19% vs 7.66%, Nexus 2026

Updated

Reviewed by Nexus by State research team using official state tax sources. Last reviewed .

Compare Texas and New Mexico sales tax rates: Texas shows a 8.19% combined state and average local rate with a $500,000 economic nexus threshold, while New Mexico shows 7.66% with a $100,000 threshold. This guide focuses on seller sales-tax obligations rather than personal income-tax returns.

MetricTexasNew Mexico
Economic nexus threshold$500,000$100,000
Transaction thresholdNoneNone
State rate6.25%4.88%
Avg. local rate1.94%2.79%
Combined state + local8.19%7.66%
Marketplace facilitatorYesYes
Effective since2019-10-012019-07-01

Which state is easier for sellers?

For low-revenue sellers: nexus triggers first in New Mexico because of its $100,000 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 8.19%.

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

Texas — nexus note

Texas sales tax nexus and SaaS taxability: economic nexus applies to remote sellers with $500,000 or more in total Texas revenue during the preceding twelve calendar months. After crossing that safe harbor, Texas requires a permit and sales/use tax collection no later than the first day of the fourth month after the threshold-crossing month. Texas treats data processing as a taxable service and the Comptroller says data processing providers include software-as-a-service sellers and application service providers; 20% of a data-processing charge is exempt, so SaaS treated as data processing is generally taxed on 80% of the invoice amount. Marketplace-only sellers whose marketplace provider certifies Texas collection generally do not need a Texas tax permit, but sellers must keep marketplace-sales records for at least four years.

New Mexico — nexus note

New Mexico gross receipts tax nexus and economic nexus threshold: New Mexico levies a gross receipts tax (GRT) rather than a conventional sales tax. Beginning July 1, 2019, a person lacking physical presence in New Mexico — including a marketplace provider — has economic nexus if, in the previous calendar year, it had at least $100,000 in total taxable gross receipts from sales, leases, and licenses of tangible personal property, sales of licenses, and sales of services and licenses for use of real property sourced to New Mexico (HB 6, 2019). New Mexico uses a sales-only threshold — no transaction-count test. Marketplace providers with at least $100,000 of New Mexico gross revenue collect and remit GRT on sales they make or facilitate. New Mexico uses destination-based sourcing for most GRT, with a statewide rate around 4.875% plus local increments that vary by location. New Mexico Taxation and Revenue Department source data last retrieved 2026-06-14.

What to do next

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

Texas overview →New Mexico overview →

Frequently asked questions

Which state has the lower sales tax nexus threshold, Texas or New Mexico?
New Mexico has the lower economic nexus threshold at $100,000, versus $500,000 in Texas. A seller's New Mexico sales would reach the published New Mexico threshold first. These are the thresholds published by each state's tax authority as of 2026-06-14; confirm against the official source before registering.
Do both Texas and New Mexico have marketplace facilitator laws?
Yes. Both Texas 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 2026-06-14.
Which has the lower sales tax rate, Texas or New Mexico?
New Mexico has the lower combined state and local sales tax rate at 7.66%, compared with 8.19% in Texas. These are the statewide base rate plus the average local rate; the exact rate depends on the customer's delivery address. As of 2026-06-14.
Do I need to register for sales tax in both Texas and New Mexico?
It depends on where you cross each state's economic nexus threshold (or have physical presence there). Texas's published threshold is $500,000, 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 2026-06-14.
When did economic nexus take effect in Texas and New Mexico?
Texas's economic nexus rule took effect on 2019-10-01, 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.

More sales tax comparisons

Selling into more than two states? Compare Texas and New Mexico against other major markets for nexus thresholds, rates, and marketplace facilitator rules.

More Texas comparisons

More New Mexico comparisons

    Sources

    date_retrieved: Texas 2026-05-25 · New Mexico 2026-06-14